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Tuesday, October 30, 2012

Council To 'Gift' Stanhope £0.5M

Herefordshire Council are expected to pay Stanhope an extra £500,000 to ensure the former livestock market, next to Edgar Street, redevelopment goes ahead.

It appears that there will only be five big lets on the site instead of the six that was hoped for. Consequently the income will be reduced.

So Stanhope feel they need some extra money to guarantee the scheme and the Council will agree to fill some of the hole at a cabinet meeting tomorrow (Wednesday).

"The market conditions are extremely challenging at the moment and this is going to be the only scheme that comes forward in 2014," the leader of Herefordshire Council, John Jarvis, told BBC H&W.

"We accept we are going to have to waive £500,000 income from the scheme.

"British Land have agreed to change their requirements from six lets to five lets - Waitrose, Debenhams, Odean, Next and TKMax.

"Because of the fact that the market conditions have changed and the yield from the capital they spend is having to be slightly modified, then they are going to have to find £3M less on the deal and also spend another £1M more than they anticipated.
"The alternative is that we have the biggest car park in Herefordshire.
"The big money behind this deal is British Land who are putting £90M in here and it's decided that they should have a percentage return from that money.
"We will agree that the yield can go up by 0.2% - that is £3M and our share is £0.5M.
"Either we go with that or the scheme will collapse."