Historic rail shed in Peterborough to be sold for £7 million Food Hall attraction

A derelict Victorian goods shed in Peterborough is to be sold to secure a £7 million plus venture to convert it into a high quality food hall.

The listed railway building at Fletton Quays is being sold by Peterborough City Council and will become part of The Vine cultural and community centre, which is a major Towns Fund project.

Members of the council’s ruling Cabinet are expected on Tuesday (November 17) to approve the sale of the building for £250,000 to Farholt Goods Shed Ltd, of Kettering.

Councillors will also approve a grant scheme for £1,895,000 to drive the redevelopment of the building.

Members will be told that the estimated cost of developing the building will total £7.1 million, according to a professional assessment given to the council.

A report to the committee states that the grant scheme helps to make the development viable.

It points out that the project has ‘abnormal costs’ associated with its history as a railway shed and the building’s listed building status, making it difficult for the private sector to fully fund the investment needed.

Councillors will also be told that once developed, the new look building will ‘dramatically improve the public realm and river frontage’, protect and enhance the existing railway shed and become an extension of the city centre that will ‘act as a stepping stone and a destination’.

It adds: “The Goods Shed will be used as a food hall which will allow users to sample a range of different dishes from a host of unique and independent street food vendors in one location set in a large communal space.

"The vision is to create a destination venue that is inclusive for everyone.

"The project will offer an incubator for small local hospitality businesses, and the council is permitting other ancillary complimentary uses to support viability providing the primary use is as a food hall.”

A timetable for the project envisages construction starting in February 2026 and completing a year later.

The Vine project secured £13 million of government cash under the Towns Fund initiative.

Originally planned to be housed in the former TK Maxx store in Bridge Street, it has since been split into two with the second section to be housed at the Central Library, in Broadway.