Surrey Heath Council has expressed its disappointment at House of Fraser’s plans to close its store in Camberley.
The council acquired the freehold to the 115,000 sq ft store in December 2016 from M&G Real Estate for £17.6m – a 5.75% yield.
It had been in talks with the retailer since September last year about revamping the building on Park Street.
Council leader Moira Gibson and chief executive Karen Whelan said in a joint statement that the store had “traded well” but had “suffered from underinvestment over the years”.
The statement added: “We would like to see House of Fraser remain part of our future and we are firmly committed to doing what we can to assist that.”
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Investment by local authorities into property has topped £3.7bn since 2014 and investment into retail and leisure property in the UK hit £1.4bn last year, according to data from Radius Data Exchange.
Surrey Heath Borough Council has spent £140m to regenerate Camberley, including the acquisition and subsequent refurbishment of The Square shopping centre.
Gibson and Whelan in the statement denied that the acquisition of the freehold had been for investment purposes, insisting that it was part of the wider regeneration plans.
House of Fraser has said it will look to shut 31 stores early next year as part of plans to try and save the business.
The rescue plan will require approval from 75% of the retailer’s creditors to go ahead. A vote is scheduled to take place on 22 June.
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