As Guildford’s retail revival faces more delays, its rivals are gaining ground. Claire Robson asks when the North Street development will finally see the light of day
It has been talked about since the 1980s, but no one has yet succeeded in transforming Guildford’s retail core. The latest announcement that Guildford borough council and Land Securities have failed to reach a development agreement by the end of February deadline, raises further doubts the vision will become reality.
The pair say they require until the end of April to reach agreement on a scheme which could provide the Surrey town with 400,000 sq ft of retail, possibly anchored by John Lewis.
Land Securities, which was announced as development partner in September 2013, declined to comment on the delay, but Guildford borough council’s executive head of economic development Chris Mansfield says: “We are making excellent progress and are in the late stages of finalising an agreement. But this is a complex project and we have to ensure we get the right agreement.”
The likes of Westfield and Hermes have previously tried and failed to get a North Street development off the ground and Mansfield admits the parties are under pressure to make progress.
He hopes a planning application will be submitted at some point next year, with a three-year build likely to start in 2017. A CPO process will also begin in the next 12 months, during which time issues such as car parking and the future of the town’s bus station, which is incorporated within the site, need to be resolved.
The process had already been delayed last year when the council performed a U-turn on its preferred development partner. The executive committee was poised to select rival Lend Lease in April. However, M&G Real Estate, the new owner of the adjacent , formed a landowner partnership with the council and persuaded it to reconsider.
Land Securities finally won favour on the basis it had a more impressive recent track record and would form a better relationship with M&G. However, the council’s recent statement warns that if a development agreement is not settled by the April deadline, it will reopen talks with Lend Lease.
If Land Securities does go ahead with development it will have to do so through some form of partnership with the new Friary owner. M&G director Jonathan Weymouth says: “Given that M&G Real Estate is the primary landowner at the North Street development site and that Land Securities has been selected by Guildford borough council as the preferred development partner, it is clear that all parties would be seeking to discuss how a joint venture could work to keep this project moving forward.”
Meeting demand
Meanwhile, Guildford lacks appropriate units to meet retailer demand and is failing to live up to its potential.
Last year, the town topped an Experian survey based on data about the levels of consumer spending, household income, demographics, and the penetration of online retailing. With a large affluent catchment it already attracts an annual retail spend of £900m and boasts high-end fashion brands such as Hugo Boss and Armani.
“But we desperately need North Street to be delivered if Guildford is to meet demand and prevent leakage of retail spend to the likes of Kingston and Reading”, says Mark Isherwood, director at local agent Wadham & Isherwood. “There will be plenty of retailer demand, it is just frustrating it has been such a long time coming.”
Although further afield, the proposed £1bn regeneration of Croydon town centre by Westfield and Hammerson will help change the retail landscape and put further pressure on Guildford.
“Guildford needs to deliver something significant to compete effectively”, says FSP director John Fell. “There will be enough retail demand to fill these schemes, but now is the time for them to step up a gear and get things done.”
