Modus Properties’ plans for a retail and leisure scheme in Burnley have collapsed after the local council pulled out of a joint venture agreement.
Burnley council will now redevelop the bus station site with Lancashire county council. The decision puts Modus’ proposed 5,570 sq m (59,956 sq ft) scheme on the adjoining site in crisis. The Manchester-based developer was due to start work on its Burnley Interchange project last month.
A spokesman for Burnley council said: “The Modus scheme didn’t quite fulfil our expectations. It was not attracting the level of retailer we had hoped. It was more of what we already had in the town.”
Modus director Mark Riddell said: “We are talking to the council. They wanted the best, but we have to respond to market forces. We own around one third of the site and will press ahead with retail development there.”
In December last year Modus was forced to scale down proposals for its £35m Arena Central leisure scheme in Warrington. Modus said it was looking at ways to make Arena Central “more deliverable and smaller” in the wake of Odeon’s decision not to go ahead as anchor tenant. It entered into a joint venture with Miller Group and is now talking to Miller and the local council.
Modus has grown quickly under managing director Brendan Flood’s leadership. The Manchester developer now has a property portfolio valued at more than £50m and substantial interests in sites in Wigan, Preston, Colwyn Bay and Peterlee.
Burnley is in the midst of a series of linked redevelopments and improvements amounting to £50m investment over three years.
EGi News 09/10/00
