Council buys shopping centre

STOCKPORT COUNCIL has exchanged contracts to buy  Merseyway Shopping Centre for an undisclosed sum.

The council, which did not disclose the purchase proce for “commercially sensitive” reasons, said following the purchase it will invest up to £35m over two years in updating and improving the infrastructure and facilities.

The council said it will also use funding from loans to invest in Stockport Exchange and Redrock developments.

Merseyway Shopping Centre has been in receivership for seven years but the council said that income generated from shop rental will cover the cost of borrowing so the deal will not cost tax payers.

Eamonn Boylan, chief executive at Stockport Council, said: “This purchase will not cost Stockport Council Tax payers a penny and will provide the long awaited opportunity for the council to promote a genuine regeneration of the town centre in conjunction with the Redrock Scheme, which also went on site last week.”

Caroline Simpson, corporate director for Place Management and Regeneration at Stockport Council, said: “As a council we are committed to ensuring that all of the town centre and wider borough have a bright future. The purchase comes at a time when the council is working hard with partners to transform areas of the town centre through our Investing in Growth projects.”

Bilfinger GVA acted for the vendor Merseyway Centre No1 and No2 Ltd acting by the LPA Receiver. The council’s legal services department and Pinsent Mason acted on the purchase and DWF acted for the seller.

The purchase is expected to complete by the end of the month.