Waitrose pulls out of Citybranch scheme

A CONTROVERSIAL £35m development in a Manchester suburb has been dealt a major blow after supermarket group Waitrose pulled out.

The upmarket grocer was to have anchored a mixed use scheme put forward by family-owned developer Citybranch in Hale Barns.

The project was delayed by nearly two years after local residents objected to the size of the proposed development, and only won planning permission from the local authority this autumn.

In a short statement Nigel Keen, director of development for Waitrose, said the company had withdrawn from the Hale Barns scheme and is looking instead at a location in nearby Altrincham. 
 
He said: “Following a review of our property portfolio in the North West, we have decided not to pursue The Square in Hale Barns as a potential location for a new Waitrose.

“We will be focusing on alternative sites in the region, including our proposed food shop at Stamford Brook in Altrincham which we hope to open in early 2010.”
Citybranch director Adam Gross said talks were continuing with other retailers:

““We have been in talks with a number of leading operators for the anchor store at Hale Barns for some time.

“Waitrose is not as aggressive as some other operators in this climate and there are plenty of good opportunities with other major names. We hope to be in a position to make an announcement very soon about the anchor store for Hale Barns.”

With the speculative development market all but dead, Citybranch is likely to need an anchor tenant before being able to finance the development.

It is understood that The Co-operative Group, which currently occupies the site, is keen to retain a presence there.