Wakefield City Council has backed out of proposals to acquire The Ridings shopping centre from NewRiver Retail, citing “significant” financial pressures.
Councillors had considered buying the mall as part of a regeneration project, with scope to deliver around 340 homes. However, they decided at a council meeting last week that it was “not the right time” to be stepping in.
The council is instead seeking to support other potential third-party buyers on transforming the site, including sharing its due diligence. It is also instructing officers to “explore different models for delivering the Wakefield City Masterplan”.
A council report showed the estimated cost of the acquisition stood at around £7.5m.
Denise Jeffery, leader of Wakefield Council, said: “It has become clear that the impact of the huge financial challenges we are facing will be far greater than we have encountered before, with huge pressures on our budget and our ability to deliver services. Therefore, making this decision a significant financial risk that we cannot take at this time.
“This site still remains a key area in our long-term regeneration plans for Wakefield and we want to support any potential buyer to help realise our ambitions for the city centre.”
Jeffery added: “We will be exploring different options to help deliver our ambitious masterplan for Wakefield and we are continuing to work with external funding partners and agencies in an effort to support the future of the Ridings site.”
NewRiver bought the shopping centre in 2015 as part of a £92.3m portfolio acquisition.
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