Hereward Cross: Development plans for Peterborough shopping centre are 'unclear'

The future of a Peterborough shopping centre is “unclear”.

The council says it doesn’t currently know what developers' plans are for the Hereward Cross Shopping Centre.

A new buyer has come forward for the southern end of the centre, where Midgate and Westgate meet Broadway.

They are a “professional investor” with a “large portfolio up and down the country”, Peterborough City Council (PCC) says.

Speaking at a PCC meeting, service director Simon Lewis said the “developers’ intentions are unclear at the moment”.

Executive director Adrian Chapman added that the bid “presents an opportunity to open up a dialogue with the new owners once the sale is completed”.

Council leader Cllr Mohammed Farooq (Peterborough First, Hargate and Hempsted) said the council will still have a say in its future as any significant changes to the building would have to go through its planning processes.

The new deal replaces another partially agreed in March last year.

PCC approved sale of its freehold interest in the site to a buyer who also intended to purchase the building’s leasehold from owners Pelican Partners (Peterborough) Ltd.

The same terms have been agreed but with a different buyer.

This means the council will no longer be able to collect ground rent of £80,000 per year, but it says money from the sale will be put towards reducing its borrowing costs.

The leasehold, which PCC doesn’t own, was initially marketed for £6.3m last year.

The part of Hereward Cross which will change hands is currently home to Poundland, the Sir Henry Royce pub and various other shops and takeaways.

One of its largest units is currently empty after the closure of Wilko.

Not part of the sale is Tesco Express as well as O’Neill’s pub and the Embassy nightclub.

PCC’s decision-making cabinet agreed to change the terms around the sale to accommodate the new buyer at a meeting on Friday, 22nd March.