Northampton borough council and Legal & General have ended a five-year development agreement to jointly redevelop the Greyfriars site in the town centre after a major out-of-town scheme was approved by a planning enquiry.
The development agreement obliged L&G, subject to a series of preconditions including occupier commitment and financial viability, to attempt to extend the Grosvenor Centre to provide 430,570 sq ft of additional floorspace on the site of the demolished Greyfriars bus station.
It also committed L&G to a refurbishment of the existing Grosvenor Centre as part of the scheme.
The council had agreed to enable the extension by building a new bus station and upgrading a car park, both of which have now been completed.
But the four-acre town centre Greyfriars development has not moved ahead and was delayed further while the council and L&G opposed the competing 465,000 sq ft Rushden Lakes out-of-town retail and leisure scheme by LXB Retail Properties.
When permission for Rushden Lakes was granted in June, the council and L&G met again and, following further consideration, have now agreed to end their joint commitment to redevelop Greyfriars.
The local authority will now take forward the development of the Greyfriars centre on its own.
Simon Russian, head of retail development at L&G, said: “At the Rushden Lakes planning inquiry we were very clear that we could not move forward with the Grosvenor Centre extension if permission was given, and, in a fast-changing retail environment, we have refocused our efforts on repositioning the Grosvenor Centre’s retail offer. That has started with the exciting introduction of the full-line Primark and Next stores, which will be open for Christmas.
“These are major long-term commitments to Northampton town centre, and we are also pleased to announce that Boots has committed to a major refit of its store, which is one of the biggest in the region. This project will commence shortly and will transform one of the biggest stores in the town centre.”
Demolition of the old bus station and office complex is now underway and the site will be cleared and ready to market to developers and retailers by December 2014.
L&G will continue with its £10m investment into the Grosvenor Centre. It will also submit a planning application shortly to remodel both the neighbouring Market Square and Abington Street entrances.
Northampton borough council plans to continue with the demolition of Greyfriars and will prepare the site for development, while seeking a development partner to draw up plans for a major retail and leisure scheme. Subject to planning consent, work could start on site in autumn 2015.
Cllr David Mackintosh, leader of Northampton borough council, said: “I am pleased the borough council is now able to move forward with this development on its own. It is time to deliver the improvements that people have been waiting for many years to see, which will strengthen Northampton’s retail offer and keep more spend in the town.
“Legal & General will remain an important partner for us because of its ownership of the Grosvenor Centre but we have agreed to move forward separately.
lisa.pilkington@estatesgazette.com
