Centre’s empty units could become offices
A CITY centre shopping centre that is more than three-quarters vacant has had the threat of closure lifted – though its long-term future could see it redeveloped into offices and flats.
The Eldon Garden centre has just a handful of tenants and owners Peer Group said earlier this year that it was considering closure unless its decline could be turned around.
The company blamed a number of decisions by Newcastle City Council – as well as the wider decline in the retail sector – for the centre’s demise and called for urgent talks with the authority to avoid the closure of the prominent arcade.
Now Peer Group has revealed it is working with the council to revive Eldon Garden and hopes to have some new tenants in the centre, though it is also considering longer-term plans that could see the area redeveloped for other
uses. Managing director Howard Dawson said: “There has been a steady decline in trading in Eldon Garden over many years and we have been badly affected by decisions that have been taken by the council in their various capacities including highways, car park management, planners, adjoining owners (the council owns 40% of Eldon Square).
“I met with the chief executive Pat Ritchie and the leader of the council, Coun Nick Forbes, on July 16. I put to them that we had reached a point where closing the covered malls was a likely outturn and would significantly reduce the expenditure and losses that we were incurring on Eldon Garden. “The external parts of Eldon Garden which include Tesco, The Goose Pub, Pure Gym and the Percy Street shops would continue unaffected by a closure of the malls. “Working with our local advisers, Sanderson Weatherall, we also outlined some proposals for reconfiguring the existing retail scheme and a more radical proposal to redevelop this part of the city with a mixed use scheme.
“We made it clear that neither of
these options would come to fruition without the positive support of the council in their various guises. The council agreed at our meeting in July that they would work with us to explore what might be achievable.
“On this basis, Peer Group has taken the decision to continue to trade the Eldon Garden malls and to seek new tenants for the void units. We have two ongoing dialogues involving the mall cafe and we hope to have the café opened again before Christmas.”
Mr Dawson said that plans for alternative uses of the site were just “very early thoughts” at this point, but could involve offices, retail and residential uses.
Peer has previously said that changes to traffic regulations, which make it more difficult for shoppers to use the Eldon Garden car park, and changes to all-day parking charges in the car park, have quickened the centre’s decline. The retail sector as a whole is experiencing challenging conditions, with big chains like Toys R Us, Maplin and House of Fraser collapsing and many other retailers announcing store closures.
Earlier this week Eldon Square and Metrocentre owner intu announced it was looking at alternative uses for hundreds of acres of land at its sites, including hotels, offices and rented housing.