Castles In The Air - Another "Plan" For The Whitgift Centre

PropertyWeek reports that Hammerson has signed an exclusivity agreement which will enable it to buy a stake in the Whitgift Centre in Croydon.

This of course places a question mark over Westfield’s plans for the centre, and adds to the confusion as to what exactly is going on with the shopping centre.

In November 2011 Westfield announced that it had secured an exclusive agreement with the shopping centre’s freeholder, the Whitgift Trust, to explore options to redevelop the mall. However, the shopping centre’s other stakeholders had not been consulted and agreed to sell a share of their stake to Hammerson.

"Plans" for the redevelopment of the Whitgift shopping centre have been argued about for years, eg I wrote this in February 2005:

"Minerva is funding Croydon Council's fight against the Whitgift shopping centre expansion plans proposed by Minerva's rivals, who own the Whitgift.

Minerva is paying the six figure costs of legal fees incurred by the council, at a planning inquiry into the expansion of the Whitgift shopping centre.

The owners of Whitgift are appealing against the council's decision not to approve plans to extend the shopping centre. The extension is called Bishops Court 2.

The council is reported to back the rival project called Park Place, which is proposed by Minerva."

Frankly, based on the failures of previous schemes, I don't think there will be an redevelopment of the Whitgift anytime soon. 

Nathan Kirsh Bids For Minerva

Property Week reports that South African investor Nathan Kirsh has made a bid to takeover Minerva with a 50p per share cash offer valuing the company at £84.5m.

He made the bid last night through the vehicle Kifin, which makes investments for the benefit of Nathan Kirsh and his family.

Kifin said the offer is at a premium of 30.7% to Minerva's closing price yesterday of 38.25p and a 52% premium to the average closing price of 32.9p per Minerva share for the three months up to yesterday.

Minerva are involved in the ill fated Park Place scheme.

Park Place Finally Dies

In March 2008 I wrote:

"It looks like the Park Place development scheme has collapsed (or rather is going to collapse).

How many years has the council (both Labour and Tory) tried to kid us that this development would ever happen?

Who seriously believed that this scheme would ever get off the ground?

How many other development schemes touted by the council are going to fail to get off the ground?

The failure of Croydon council to plan effectively has led to the degradation and decay of the area designated for the development, eg St George's Walk. Local businesses, such as Turtle's, have been under threat of closure because of this scheme."

In May 2005 I wrote that:

"Turtle's, one of Croydon's best known independent stores, is searching for new premises after compulsory purchase orders were issued to acquire the land for the £500M Park Place shopping centre."

In February 2005 I wrote about Minerva funding Croydon Council's fight against the Whitgift shopping centre expansion plans proposed by Minerva's rivals, who own the Whitgift. I stated then that this must surely raise reservations about the council's independence.

In October 2008 I wrote:

"The Park Place development is dead in the water, yet it is still destroying the heart of Croydon."

Today we finally read the obituary of this unwanted, and unloved, scheme.

Property Week report that Croydon Council is to cancel its development agreement with Minerva to develop Park Place, after it said there was "virtually no chance" that Minerva could develop the scheme.

Have I not been saying the self same thing for quite some time?

The council without a single trace of irony are quoted:

"Rather than prolong the inactivity that has blighted the site for so long, the council now intends drawing up a revised strategy for the site which will include attracting John Lewis to the town centre. It is hoped that a new CPO will not be necessary but this will be a fall back position when a new development partner is in place".

Croydon council leader Mike Fisher, said:

"I very much hope that we do not have to resort to CPO proceedings as this will only further prolong the delay that has blighted the area and devastated so many of the traders who used to operate in St George's Walk, but if another CPO is the only way we will follow that route to ensure the area is regenerated."

The above comments from Fisher and the council beggar belief. They are the ones responsible for ripping the heart out of the centre of Croydon, and inflicting the blight that will remain for decades to come.

I would also remind them that were it not for their pig headed intransigence the Gateway development, that they sought to block for so long, would have long since been completed. Instead, thanks to their insistence in backing the wrong horse, they have succeeded in ensuring that the redevelopment has been delayed further as a result of the financial and property crisis. Thus adding another blighted area to the centre of Croydon.

The people of Croydon have been ill served by their council over the past decade, there is not a cat's chance in hell that the council are capable of reversing the blight that is eroding the heart of Croydon.

Developments Run Out of Money

As predicted on this site on numerous occasions, according to the Croydon Guardian:

"Minerva, the company behind the £500m Park Place project, has admitted it needs someone to bail it out otherwise the development will not happen."

Why have the successive councils that have "ruled" Croydon insisted on favouring property companies that offer fancy ego boosting schemes, that have not got a chance in hell of becoming reality?

Croydon Council's stubborn delaying tactics over the Gateway development appear to be causing Stanhope Schroders problems as well.

Well done the council, serving their needs before the needs of the citizens of Croydon!

Park Place Folly Destroying The Heart of Croydon

One of Croydon's oldest family businesses, Turtle's, is to close its doors for the last time on Christmas Eve.

The future of the business has been uncertain for the past couple of years since compulsory purchase orders were issued on Park Street shops to allow Minerva's massive Park Place retail development to go ahead.

The lease on the store which is famous for selling its huge range of hardware and tools, is coming to an end.

And owner Jeremy Turtle told the Advertiser renewing it was not really an option.
Mr Turtle said: "I am 65 and have been involved in the business for 44 years.
"I want to retire and there is nobody else in the family who is interested in taking over, so there is no choice but to close.

"Business has not been very good recently and I think it has been affected by the uncertainty. There is little chance of selling it as a going concern."

The store employs around 30 people, many of them on a part-time basis.

Mr Turtle said: "We are all very upset but you can't go on forever. I am very disappointed for my customers."

Source Croydon Advertiser

The Park Place development is dead in the water, yet it is still destroying the heart of Croydon.

Park Place Dead In The Water

In May 2008 I noted the following:

"Aside from our very naive council, who seriously believes that this development will ever take place in the next five years?

This scheme is sinking fast, and is dragging down local businesses and the environment with it (see my article in March 2008 for further background)."

In March 2008 I stated:

"How many years has the council (both Labour and Tory) tried to kid us that this development would ever happen?

Who seriously believed that this scheme would ever get off the ground?"

In February 2005 I questioned the independence of Croydon Council:

"To my view, this must surely raise reservations about the council's independence.

As ever, the citizens of Croydon are left wondering when the creeping blight emanating from the town centre will be eradicated.

In my view, we are not being well served."

The latest report in The Croydon Advertiser indicates that I was right to be cynical about this project.

Quote:

"Croydon's flagship Park Place development will be delayed yet again and radically rethought, it has emerged this week.

Instead of this autumn, it will now be next year before any revised application emerges for the massive town centre scheme - and it looks set to be very different to previous plans."

This project is going absolutely nowhere, and dragging the centre of Croydon and St George's Walk down with it!

Surely even Croydon Council cannot be so naive as to believe that this scheme is ever going to get off the ground?

Why has the council allowed the centre of Croydon to hemorrhage for a "pie in the sky" scheme with no future?

Minerva Offer Collapses

In July I noted that Minerva, the developer which Croydon Council expect to develop Park Place, had received an offer from Limitless.

Property Week reports today that:

"Shares in listed developer Minerva fell 33% to 52p this morning after Limitless withdrew its prospective takeover offer.

The development arm of the Dubai World sovereign wealth fund told the London Stock Exchange this morning that it had withdrawn its 160p-a-share offer."

I do not see that this is good news for the Park Place development as, despite whatever Minerva claim, their financial position is now weakened.

Limitless Offer for Minerva

Property Week reports that the developer Minerva has received a £258M cash offer from Dubai property company, Limitless.

As I noted back in May, this bid may well affect the much delayed plans for Park Place.

The original plan was for work on Park Place to start in spring this year, with completion expected in 2012.

Croydon council now claim that it does not expect to receive a new planning application from developer Minerva until October or November this year.

Park Place Going Nowhere

The Croydon Guardian reports that the much vaunted Park Place scheme, that has caused the decay of St George's Walk, has been delayed again.

The original plan was for work on Park Place to start in spring this year, with completion expected in 2012.

Croydon council now claim that it does not expect to receive a new planning application from developer Minerva until October or November this year.

Whilst that is going on it seems that Minerva may well be taken over.

Aside from our very naive council, who seriously believes that this development will ever take place in the next five years?

This scheme is sinking fast, and is dragging down local businesses and the environment with it (see my article in March 2008 for further background).

Park Place Collapse

It looks like the Park Place development scheme has collapsed (or rather is going to collapse).

How many years has the council (both Labour and Tory) tried to kid us that this development would ever happen?

Who seriously believed that this scheme would ever get off the ground?

How many other development schemes touted by the council are going to fail to get off the ground?

The failure of Croydon council to plan effectively has led to the degradation and decay of the area designated for the development, eg St George's Walk. Local businesses, such as Turtle's, have been under threat of closure because of this scheme.

In May 2005 I wrote that:

"Turtle's, one of Croydon's best known independent stores, is searching for new premises after compulsory purchase orders were issued to acquire the land for the £500M Park Place shopping centre."

In February 2005 I wrote about Minerva funding Croydon Council's fight against the Whitgift shopping centre expansion plans proposed by Minerva's rivals, who own the Whitgift. I stated then that this must surely raise reservations about the council's independence.

Interestingly, John Prescott crushed the rival scheme in March 2006; Andrew Rosenfeld (owner of Minerva) having loaned £1M to Labour.

According to The Times:

"Prescott killed the rival scheme, put forward by a consortium called Whitgift, by rejecting its appeal against an earlier refusal by inspectors to give it planning permission."

Prescott denied this and another allegation. Prescott confirmed that he had received the planning applications, but said he felt the decisions should be made locally.

"I passed it over to Croydon and (the other application) City of London Corporation.

They made the decision, not me."

It is time that the council stopped kowtowing to the developers, and asserted a robust and coherent development policy that served the interests of the people who actually live and work in Croydon.

Of Mice and Men

As the old saying goes "the best laid plans of mice and men..."

This most certainly is the case for the plans for the Park Place development, which have been gathering dust for years now.

Allegedly, the plan is to "regenerate Croydon town centre" (how often do developers and Croydon council use that phrase?), by amongst other things knocking down St George's Walk.

However, despite the developers and the council "talking big" for years about these plans, nothing yet has happened or looks like happening anytime soon.

The Croydon Guardian reports:

"Work was due to start in spring but Minerva and Lend Lease have still not secured an anchor tenant.

St George's Walk is under a compulsory purchase order and was originally set to be demolished late last year.

But it now looks as though it will still be open in 2009 and traders say they are fed up with not getting any answers from their landlord, Minerva."

Meanwhile St George's Walk is rotting.

A cynic might suggest that the plan is to allow the area to rot away to nothing, then force the council to accept a second rate tenant and a third rate development.

Why should the citizens of Croydon be treated in this manner by their council?

The End is Nigh For Allders

It looks as though the end is nigh for Allders, if this report in the Croydon Guardian about the building site that Croydon will be turned into is anything to go by:

"Originally the £500million shopping centre (Park Place) was to be built in two phases, easing the disruption to residents, transport and businesses nearby and allowing the Allders department store to move into new premises with minimum disruption.

But now the mammoth retail complex will be built in one go and fears are growing over the future of the North End department store which began trading in Croydon in 1862.

The council confirmed this week that Park Place would be constructed in a single phase development."

It is sad to see the Allders building go. However, the store itself has long since died (eg the mens' department) and is a pathetic shadow of its former self which should most certainly be put out of its and our misery.

Croydon Caught Up In Labour Loans Row

According to The Times, John Prescott made a decision to support Andrew Rosenfeld's company's (Minerva) plans to redevelop Park Place in Croydon after Rosenfeld had loaned £1M to Labour.

According to The Times:

"Prescott killed the rival scheme, put forward by a consortium called Whitgift, by rejecting its appeal against an earlier refusal by inspectors to give it planning permission."

Prescott denies this and another allegation. Prescott confirmed that he had received the planning applications, but said he felt the decisions should be made locally.

"I passed it over to Croydon and (the other application) City of London Corporation.

They made the decision, not me."

Happy with the way that planning and development is carried out in Croydon?

Remember to make your feelings known to the current Labour regime, by voting them out of office on May the 4th in the local elections.

Another Shopping Centre - Lucky Us!

The Croydon Guardian reports that Lend Lease Corporation Limited has entered into a deal with developer Minerva, to build the 200M shopping centre.

The centre which will front Katharine Street will have 130 stores, and will be Croydon's third and largest shopping centre.

Given the fact that Centrale is still half empty of shops, and indeed of customers, I wonder precisely what is the logic behind the Council's thinking that we need yet another souless shopping centre here.

Minerva Squash Turtles

Turtle's, one of Croydon's best known independent stores, is searching for new premises after compulsory purchase orders were issued to acquire the land for the £500M Park Place shopping centre.

Park Place is Minerva's grand scheme for redeveloping part of Croydon.

Minerva, you will recall, owned Allders the failed department store.

Minerva and the Allders Pension Fund

I draw your attention to today's article in the Times, about the Allders collapse and the dealings of Minerva.

Here is an extract of the article:

"The Minerva Two, however, and other shareholders in their property company, have so far resisted suggestions that they might do likewise. Yet the pensioners action group claims that Minerva has done remarkably well from its involvement with Allders. It was 1997 when Minerva first approached Allders about buying its huge Croydon store. The value it put on it then was £50 million but it was so keen to get the site, which was pivotal to a massive Croydon redevelopment it planned, that it also promised to move Allders to a new store while the development was built and then to return it to pride of place in the wonderful new shopping centre.

Eventually Minerva bought 60 per cent of Allders and installed Terry Green to run it with the disastrous results that will be discussed in Brighton on Monday. But before the collapse, Minerva bought the Croydon store for £49 million. That means it can proceed with its development without the costs and delays of providing a new venue for Allders. It can also install a different key tenant, probably John Lewis, in the main department store, with a consequent boost to rental levels. A fairy tale ending for Minerva, if not the Allders staff..."

I remind you that Croydon Council are happily working with Minerva, in respect of their future plans for Croydon redevelopment.

How Independent is Croydon Council?

The Times, in its Thursday edition, printed a story about Minerva (the property company that owned Allders); seeming Minerva is funding Croydon Council's fight against the Whitgift shopping centre expansion plans proposed by Minerva's rivals, who own the Whitgift.

Minerva is paying the six figure costs of legal fees incurred by the council, at a planning inquiry into the expansion of the Whitgift shopping centre.

The owners of Whitgift are appealing against the council's decision not to approve plans to extend the shopping centre. The extension is called Bishops Court 2.

The council is reported to back the rival project called Park Place, which is proposed by Minerva.

The Times summarises the schemes as follows:

Bishops Court 2: (proposed by the owners of the Whitgift shopping centre) Plans to redevelop the site, where an Allders department store is located, with a 495,563 sq ft shopping centre.

Park Place: (proposed by Minerva) Plans to build a new shopping centre with 1.08 million sq ft of shops, restaurants and cafés on an Allders department store site and adjoining sites.

To my view, this must surely raise reservations about the council's independence.

As ever, the citizens of Croydon are left wondering when the creeping blight emanating from the town centre will be eradicated.

In my view, we are not being well served.

Allders Undervalued?

The Times repprts that Alan Johnson, the Secretary of State for Work and Pensions, is under increasing pressure to look at events surrounding the collapse of Allders and the potential loss of the employees’ pensions.

Staff at the chain’s Hull shop have collected a petition asking Mr Johnson, who is the MP for Hull West, to investigate last April’s sale of Allders’ store in Croydon to Minerva, the property company that owns 60 per cent of the chain’s parent company, for £49 million.

The workers believe was far below the store’s true value. Minerva has said that it will not cover any of the pension fund’s liabilities.

This is going to get ugly.

Allders May Be Left Vacant

The Times writes today that Minerva may be forced to resubmit plans for its £500 million Park Place shopping centre development in Croydon, after Allders gave up its right to be the leading tenant.

They also note that the Croydon store, which adjoins the Park Place development site, will be left vacant over the summer.

An empty store, the size of Allders, in the heart of Croydon is certainly not what Croydon needs right now.

Minerva End Takeover Talks

Minerva have announced that it has ended takeover talks for Allders (the whole business), saying the offers undervalued the company.

The full article can be seen here Reuters.