£77m development derailed

A LANDMARK redevelopment of the Cumbrian town of Penrith has been hit by the financial crisis after bankers withdrew funding.

The £77m mixed-used Penrith New Squares scheme, which included a Sainsbury’s superstore, 34 shops, bars and restaurants, apartments, a football stadium and public realm, has been delayed after National Australia Bank pulled the plug on funding. 

The key regeneration project would have created 950 jobs. 

In a statement developer Lowther Manelli said: “All of us are in some way being affected by the credit crunch as banks reign in their commitments to property markets. Penrith New Squares is no exception.

“Citing concerns with the current state of the market particularly the commercial and residential sectors as its reason, National Australia Bank has withdrawn its project funding for Penrith New Squares.

Lowther Manelli therefore regrets to announce that due to circumstances outside of its reasonable control, the development of Penrith New Squares is being delayed whilst new long term funding arrangements are put in place.” 

Local MP David Maclean is calling on the North West Development Agency to try and help the scheme get off the ground.