Vow to get Penrith's New Squares scheme back up and running
Last updated 12:52, Thursday, 09 October 2008
The man in charge of Penrith’s New Squares development insists that the project will be back up and running in the new year.
Jim Lowther, whose company Lowther Manelli has spent eight years developing the project, said that negotiations are already underway to provide fresh funding to restart the scheme.
On Monday news broke that the project, the biggest development in the town’s history, had ground to a halt as the credit crunch bit.
At around 1.30pm, workers downed tools and left the New Squares project, with no idea of when they would return to the Southend Road site.
Financing company, the National Bank of Australia removed its backing from the development over the course of several weeks, leaving developers with no choice but to temporarily abandon the project and clear the site.
Mr Lowther said: “Financing mixed-use developments is difficult at the best of times, so it’s even worse in the current economic climate.
“It has caused our prime funder, the National Bank of Australia, to write down, with a short-term view, the value of all the components of the project, to the point where it is not prepared to carry on funding.
“What we need to do is put together a new funding package, underpinned by corporate and private investors and money, taking a longer-term view. We are in those negotiations right now.
“We are speaking to corporate investors who have a long-term view and are cash rich.”
The developer is making the completion of the Frenchfield football ground its first priority.
Penrith Football Club’s new ground was due to be completed within a month, and is in the final stages of its development.
The team needs to move away from Southend Road so that their current ground can be demolished, and the new 55,000sq ft Sainsbury’s supermarket can be built in its place.
A new car park with space for more than 1,000 cars is also due to be constructed as part of the development.
The New Squares’ completion would see 950 jobs created for the town. Mr Lowther added that the cost of the project was now less than the original £79 million, but would not confirm how much was left to pay for.
He said: “There are funders out there, people who believe this is a worthwhile scheme and want to do it.
“It is a smaller investment now, as all the most difficult stuff has been done – piecing it together and paying for the site parts that were not owned by the council.
“You only have to look at the commitment being made to the scheme by Sainsbury’s, the council, and us, and look at the fundamentals that underpin it, in the medium to long term they are very sound.
“There are still strong demands from retailers to be represented in Penrith.”
Both the council and Sainsbury’s said they are still committed to the New Squares development.
However, although the council said it does have a contingency plan should the development not find alternative funding, officers have yet to comment on what that plan is, and how much it would cost.
Lowther Manelli has ensured that car parking will remain available in Southend Road and Old London Road during the wait for the new car park on the development.
9 proprties have been structurally damaged by this development & we are still awaiting insurers decisions.The perpetrator-a sub contractor-even had the temerity to inform me he was not aware of the damage caused-obviously he does'nt read the 'Publick Prints' as Sam Pepys would have said & in any case had been advised not to comment.
But dont sack the Council - the best punishment is to ensure they sort it out-suspending their allowances until they do!
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They should make the site a free carpark so that shoppers can come and spend in the shops Penrith already has. This would bring in more cash to regenerate the buildings that are already standing empty in the town and attract new businesses.
Posted by Rachel on 10 October 2008 kl. 11:02