Another retail centre bought by local authority to support economic viability
A local authority in Surrey has paid £68 million to become the sole owner of a town centre shopping centre in a move intended to secure the future economic vitality of the town. Woking Borough Council has become the sole owner of the Wolsey Place shopping centre, which includes 65 shops and the residential units above them.
The deal is thought to be the largest in a series of recent purchases of shopping centres by local authorities. Earlier this month, the London Borough of Lewisham paid developer and retail manager St Modwen £11.5 million for the Catford Shopping Centre.
In a statement, Woking Borough Council said the move – financed through a loan from the Public Works Loan Board (PWLB) - would generate £1.5 million a year in profits, after all costs. This will help protect local services and benefit the community, both today and in the future, the statement said.
The council had owned the freehold of the Wolsey Place since it was built in partnership with Norwich Union (now known as Aviva) and had a 19 per cent interest in the shopping centre. The loan from the PWLB has financed the purchase of the remaining 81 per cent interest.
John Kingsbury, leader of Woking Borough Council, said: 'The acquisition of Wolsey Place is a significant step towards underpinning the medium to long-term financial stability of the council and strengthening the economic vitality of the town.
'With this key asset under our control, we hope to attract new retailers into the town and generate more jobs for local people. We will also be able to influence and shape the future development of Woking town centre.'
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