Shopping centre acquisition in best long term interests of area says council

Walsall Council’s decision to buy the town’s principal shopping centre is in the best long-term interests of the area, the local authority has said.

The Black Country borough has come under fire for its decision to invest in the Saddlers Centre at a time when it is closing libraries and cutting back on other essential services.

However, the council has defended its actions, claiming the shopping centre will be a long term asset and revenue-generator for the area.

The authority had to make an amendment to its capital programme to enable it to purchase the ground leasehold interest in the centre from owner, Topland Group.

The deal is thought to be around £14m but the council is hoping to make a £10m return on that initial investment.

Cllr Sean Coughlan, leader of Walsall Council, said: “This acquisition will provide the council with an opportunity to add to its existing investment portfolio whilst the rental income generated will meet the aims and requirements of the council’s four-year financial plan.

“The Saddlers Centre makes a significant contribution to the retail offer in the town centre and provides a gateway from Walsall train station. Owning the centre will give us a real point of control in proactively supporting regeneration in Walsall town centre, whilst also achieving significant income back to the council.”

While the council’s capital programme was approved by full council in February, the investment opportunity did not present itself until May.

The authority said that in order to complete the transaction in the timescale set out by Topland, the authority had had to act quickly and seek the capital programme amendment.

“Walsall is by no means the first local authority to seek to make a property acquisition of this nature,” added Cllr Coughlan.

“As the impact of the government’s austerity measures is felt more deeply, we will have to be creative and innovative in order to still be able to provide services that, whilst much valued by our residents, are not statutory services.”

To maximise revenue opportunities, the council will have to ensure that all the units in the centre are occupied.

At the moment, as with many other provincial shopping centres, there are many units empty.

It is anchored by department store TJ Hughes, while other tenants include Poundland, Clark’s and Costa plus a host of independents. It also has a gateway entrance to Mark & Spencer.