Sale of shopping arcade halts flats plan
PLANS to transform a dated shopping arcade in Derby city centre and create dozens of apartments have been put on hold after the property was sold for around £2.5 million.
The Audley Centre, on the corner of East Street and St Peter’s Street, has been sold on behalf of Catalyst Capital to an unnamed investor with similar assets across the East Midlands.
Previously, in 2018, a revamp of the Audley Centre had been given the go-ahead, which would have seen 48 apartments created above the existing shops.
New shop fronts were also to be introduced to the businesses below to improve the appearance of the building.
Part of the plan involved one of the retail outlets being turned into a restaurant.
The Audley Centre currently had two floors but the scheme would have seen three extra storeys added.
The plans were first submitted to Derby City Council towards the end of 2016 and the company behind the project was investment firm Steamrock Capital, which has since sold it on to Catalyst Capital.
The properties, which start at Subway in St Peter’s Street and then go around the corner as far as Poundland in East Street, generate around £500,000 a year in rent and also include Lloyds, 3 and Betfred.
Darran Severn, of FHP, said that the new owners were aware of the previous planning consent but he added: “Their approach is to attract local retailers by reducing rents and providing retail units immediately available for occupation.
“The new owners have bought the centre to invest in Derby and will want to find tenants for the retail units in what is a substantial part of the city. “At this moment in time, I think they feel that developing the area in the way it was planned is not appropriate at this time. “Instead, the centre provides opportunities to asset manage and reduce voids, while increasing rental income. There are also angles for development and breakup.”
The planning application which got the green light was based on imitating the way the corner looked when Midlands Drapery stood on the corner before it was demolished in around 1972, ahead of the centre being opened.
The Audley Centre used to contain an internal shopping mall which cut through from St Peter’s Street to East Street, until this was closed. It is understood that it is unlikely to be reopened.
Once a thriving shopping hub, the Audley Centre was built in the 1970s.
If was formerly home to longstanding Derby restaurant Swiss Cottage and provided an entrance to the former Marks and Spencer St Peter’s Street store.
I think they feel that developing the area in the way it was planned is not appropriate at this time. Darran Severn