Scottish Widows considers running away from the Circus

Scottish Widows Investment Partnerships is considering pulling its £220m funding of P&O’s 650,000 sq ft (60,400 sq m) Drake Circus shopping centre development in Plymouth. P&O has confirmed that talks with Scottish Widows faltered earlier this week after six months of negotiation. David Erwin, head of retail investment at Cushman & Wakefield Healey & Baker, who has been advising P&O, said: “Talks are not completely dead, but it is a possibility that we will be re-opening discussions with other parties.” He added: “I am confident we will secure a funding partner given the strength of the shopping centre market and, more significantly, the very positive tenant interest.” The Drake Circus scheme involves the demolition of the existing retail centre to create a traditional two-level centre of about 40 shops, anchored by Allders and Marks & Spencer. Construction work started last month and the centre is expected to open in 2006. Scottish Widows was not available for comment. References: EGi News 15/10/04