There are few corners of Sussex more unloved than Teville Gate in Worthing. Routinely described as the town’s “worst eyesore”, it has also been given the ignominious honour of being voted home to the UK’s worst shopping centre and one of its ugliest buildings.
Little wonder then that there has been universal backing for Hanson Capital Management’s £150m plans to regenerate this much-maligned site.
Most agents are optimistic that the council will give the Worthing Gateway project the go-ahead within the next couple of months. But in these uncertain economic times, and with banks reluctant to finance all but the safest of proposals, there remains some scepticism about delivery.
Hanson’s plans for Teville Gate include a conference centre, 100-bedroom hotel, nine-screen cinema, supermarket, shops, cafés and restaurants, plus 260 homes.
No-one disputes the benefits these properties would bring to the town. Up to 1,000 jobs would be created, Worthing is in dire need of quality conference and hotel space and the only cinema in town closed its doors in the 1980s.
But doubt remains. Bob Miller, partner at Clutton’s Chichester office, says: “It has got to be a challenge to fund this scheme, especially with the residential element. The market for apartments is still very quiet.”
Hanson did amend its original Worthing Gateway plans in the wake of the recession by scaling down the leisure element. The proposed swimming pool, bingo club and 10-pin bowling alley have been dropped, but the developer insists that its revised proposals are achievable.
Hanson spokesman Paul Dimoldenberg says: “We have a viable scheme which can be financed and delivered. We are confident we have a proposal that will be an economic success and a huge benefit to Worthing.”
Simon Kelly, head of retail and leisure at Hargreaves Newberry Gyngell, which is agent on the scheme, says he anticipates planning will be granted this spring.
When asked why he thinks this scheme will progress when so many others have floundered, he says: “It is a question of timing. The current site owners got planning at the start of the recession, and the initial plans were revised to make them more realistic. Also, Worthing does not have a multiplex or a café quarter. It lacks both hotel and exhibition space. We have already got a waiting list of restaurant operators wanting to take space, and they are not just the usual suspects.”
He reveals that Sainsbury’s and Belle Vue are lined up to anchor the scheme. This has been crucial in giving Hanson the confidence to move forward.
Kelly says: “Funding has not been an issue. Hanson is in talks with construction contractors who may assist with funding. The view is fairly upbeat because the demand is there and there are not many opportunities like this in the south of England.”
Although a hotel group has not yet signed up for the scheme, discussions are taking place with several potential occupiers.
Confidence was boosted by news last month that Worthing council gave the green light to Roffey Homes’ £9m plans for a 76-bedroom spa hotel plus 46 flats in Marine Parade on Worthing seafront. The art deco Beach Hotel will be demolished to make way for an eight-storey development.
Mike Jones, partner at Michael Jones, comments: “I have been in Worthing for 30 years and cannot think of a single new hotel coming on the market in that whole time. It is very good news for the town.”
Subject to planning consent, construction on the Worthing Gateway project will begin in 2011, with completion due in Christmas 2014 – welcome news for the residents of this seaside town.
Wanted: Some TLC for Manor Royal
After marking its 60th anniversary in 2010, Manor Royal in Crawley has officially reached OAP status, so it is little wonder that it is in need of rejuvenation, but there are questions about whether enough is being done to safeguard the South East’s biggest business park.
Demand is falling, industrial rents have stagnated at around £8 per sq ft and there have been so few office deals done it is hard to judge what level they are at.
Crawley council commissioned GVA to produce a Manor Royal masterplan last year. Among its many recommendations was the creation of a core business zone centred on the £100m headquarters for defence firm Thales.
It also highlighted the need for the modernisation of buildings as well as the improvement of leisure facilities and transport links.
However, the harsh economic realities mean that many of the more ambitious suggestions in the masterplan will probably remain on paper.
Claire Denman, cabinet member for planning and economic development at Crawley council, says: “There is a reality check, but the principals remain in place, and we are looking at the key sites and seeing what we can deliver. We remain pro-development and open to discussion, and we are looking at ways to simplify planning.”
So far, efforts seemed to have concentrated on the aesthetics of new signage, but Mike Taylor, GVA lead director on Manor Royal, says: “There is a lot more they could be doing. The park is well used but it is not particularly well known in commercial and industrial circles.”
He admits the bigger changes, which include improving infrastructure and changing land use, are going to prove harder to put in place. Taylor says: “It is going to be tough. There is no public money, or if there is it is going to be extremely hard won. In these very competitive times, we are under no illusions that it is going to be easy.”
The focus is on a handful of key sites, the most pressing of which is the former offices of GlaxoSmithKline, which are being marketed now for a quick disposal.
Recent rumours have linked IKEA to the 30-acre site, and it has also been highlighted as a potential site for a privately-funded hospital.
Eastbourne’s Arndale in limbo
It is perhaps telling that Legal & General felt unwilling to update Estates Gazette on its plans for the proposed redevelopment of the Arndale Centre in Eastbourne.
Last year it was revealed that Legal & General would be submitting plans in mid to late 2011 to significantly expand the 390,000 sq ft scheme. Earlier proposals for a 400,000 sq ft extension were deemed unrealistic, but a smaller-scale redesign was being drawn up.
The news from Legal & General is that it is early days, and no details as to the scale or timing of the revised plans can been given.
As one agent comments: “I imagine they are revising their options right now and that is why it has gone quiet.”
The delay may also be in part due to the fact that Legal & General is looking at options to bring new investors into its £500m portfolio of shopping centres held in its Life Fund, which includes the Arndale Centre.
It is considering offering a £50m to £150m slice to investors as it aims to diversify the fund. Legal & General wants to keep control of the assets but allow other investors in.
Further to this, while local agents agree there is some demand for fresh retail space in the town, few feel there is enough developer confidence to actually build it.
“Eastbourne is Eastbourne. It is never going to be Brighton,” comments one.
Mike Jones, partner at agency Michael Jones, says: “The word on the street is that there are a number of large occupiers with requirements for Eastbourne, but there is no stock available. An extension would benefit the town, but there is some concern about the ability to deliver such a scheme in the current economic climate. There is certainly support from the public and the council, but alas, this does not pay for it.”
