Derby regeneration area attracting international interest
There has been a “substantial amount” of interest by developers in the former Debenhams building on Victoria Street in Derby which comes as work starts to acquire an operator for an ice rink on Duckworth Square.
The Council’s property adviser, Cushman and Wakefield, which is managing the sale of the property, say expressions of interest have been received from a wide range of specialist developers and investors across the East Midlands region as well as national and international attention to the development opportunity.
A shortlisting is underway and a decision on who will be the successful bidder will be known in the winter.
The building, with a footprint covering more than 80,000 sq ft, was bought by the Council in March 2017 and immediately put on the market with a view to regenerating this area which fell in decline decades ago.
Deputy leader of the Council, Martin Rawson, who has responsibility for regeneration and economy says that while the Council does not wish to be prescriptive on the type of development, it is open to incremental change and he anticipates a mix of uses including retail, commercial, residential and leisure.
“The decision for the Council to intervene in this area following years of market failure in order to remove barriers to development is the right thing to do. We’re seeing this with the incoming expressions of interest from quality developers and investors, who are all bringing some exciting visions to rejuvenate this area. I expect a recommendation to come forward in the winter for a Cabinet decision early in the New Year,” said Rawson.
Describing the sale of this building as a “very exciting mixed-use development opportunity in the heart of Derby”, associate director of Cushman and Wakefield Liam Davies said it “will act as a catalyst for the regeneration of the Becketwell area.”
At the same time, the procurement process for an operator for an ice-rink on neighbouring Duckworth Square is underway.
An outcome will be known later this year and if the procurement is successful planning permission and construction are expected to start in 2018, according to the indicative timetable made public earlier this year.
The Becketwell area fell into decline after Duckworth Square Shopping Centre closed and Debenhams relocated. The private sector owners made several unsuccessful attempts to regenerate the area but there were underlying structural issues which the Council decided to deal with in order to make the area investor-friendly.
In 2014, the Council started a programme to regenerate the area which involved the purchase of Duckworth Square, the former Debenhams building and five other properties. The programme remains on schedule for redevelopment with completion in 2020/21.
