New owner for Haymarket Centre

Leicester City Council has paid nearly £10m to take over the Haymarket Centre.

The Council is a major tenant at the site, paying rent for the Haymarket car park, Haymarket Theatre and Haymarket Health, as well as Haymarket House which is sub-let to Travelodge.

Leicester City Mayor Sir Peter Soulsby said: “This council has invested in property in Leicester for many generations. Unlike many other councils, we are continuing to invest in our own city, and these assets make a huge contribution to its economic prosperity.”

It paid £9.9m for the shopping centre, securing a deal before the property went to market.

Funding has come from £10m capital investment fund within the council’s overall capital programme. Savings from rent payments and the income generated from rent paid by other tenants will give the council an income to continue to support critical services.

The shopping centre will be a major addition to the council’s Corporate Estate portfolio, which is worth £112m and includes buildings such as the Corn Exchange and Loseby Lane properties, as well as 400 industrial units and 263 retail units.

The entire estate generates an annual income of more than £7m.

Sir Peter added: “The Haymarket Centre is a significant and important addition to our holdings. It also fits in with our wider regeneration of this area, where we have already invested in a new bus station, the pedestrianisation of surrounding streets, and a new link road to St Margaret’s bus station.

“Government cuts to our revenue budget mean that like all councils we face very difficult spending decisions in the coming months. Using our capital budget in this way will generate much-needed income that we can spend on jobs and services, and will also give us the opportunity to have a positive impact on the city centre and the many businesses and jobs it provides.”