Work begins on £80m Penrith scheme

WORK has restarted on the delayed £80m New Squares redevelopment project in the Cumbrian town of Penrith.

The scheme has been on hiatus since National Australia Bank pulled its funding for the project in 2008, which was initially being developed by Lowther Manelli Properties.

Since then, Sainsbury’s has been brought on board as an anchor partner, although it had an initial application for a 90,000 sq ft store at Southend Road refused. However, a scaled-down scheme containing a supermarket, offices, restaurants and new houses was approved last year.

Eden Council has confirmed that contractor Thomas Armstrong has now started on site to build 61 affordable homes in order to meet a funding deadline to allow it to receive a Homes and Communities Agency grant. Eden District Council said that other enabling works are also being brought forwards to allow for full construction of the project to begin later this month.

The council said that the scheme was needed to help draw more people into the area and “reverse the trend of people travelling to other centres to do their shopping”.

Eden District Council’s interim chief executive, Robin Hooper, said: “Penrith New Squares is Eden’s economic future.

“The increased number of shops means more people spend money in the District. The town centre development with its enhanced retail offer, multi storey car park, new jobs and affordable homes would limit the threat from new out-of-town developments for existing businesses.”