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Chester City Council, ING Real Estate and Land Securities to explore revised scheme for Northgate
ING Real Estate, the company behind the proposed Northgate development, and Chester City Council, have announced that they have agreed a new collaboration with Land Securities to investigate a revised scheme of development for the Northgate area of the city centre.
The original proposal has been undermined by the significant effect that the current economic climate, over the last 18 months, has had upon the whole of the commercial property sector. Across the Country, schemes in various towns and cities including Portsmouth, Oxford, Sheffield, Stockport, Hatfield and Newport have been delayed and cancelled.
The appointment of Land Securities, the UK’s largest commercial property group, is a major boost to the project. Previous Land Securities’ schemes have secured the British Shopping Centre Industry’s prize for the best retail development, in each of the last four consecutive years.
The Cabot Circus scheme In Bristol, also was voted Best International Shopping Centre, at the European Shopping Centre Awards. Land Securities other award-winning projects include the regeneration of the historic centres of Canterbury and Exeter, providing excellent experience for the challenges of Chester.
Land Securities will work in partnership with ING and the Council to explore the viability of a scheme that will deliver benefits for all stakeholders.
David Alker, Development Director of ING Real Estate commented: “We have been in detailed discussions with a number of potential partners for the project and are delighted to have been able to select one of the UK’s leading property companies from keen competition between other potential partners.”
The Northgate Development is a key project in the Chester Renaissance, a programme of new development and city centre improvements that will make Chester a must see European city .
Chester City Council Executive Member for Development, Councillor Stuart Parker said: “We are delighted that Land Securities has joined the partnership and we look forward to working with them and ING to progress the Northgate Development ”
CEO of Chester Renaissance Rita Waters also welcomed the new partner ‘Land Securities involvement with the Northgate Development is great news for Chester. The development will ensure that the city is a wonderful place for people to live in or visit and an outstanding setting for business.”
Steve Wehrle, Land Securities commented: “The current economic climate is limiting new development right across the Country. We believe, however, that Chester is a scheme that has potential, and could support a first rate retail-led development. Land Securities’ strength of experience allows us to use these difficult times to identify, research and refine the very best development opportunities, so that they can be brought forward, at the earliest appropriate time.”
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Press contact Harriet Woodcock on 01244 402547.
Go ahead for Northgate projects
On Thursday 29th January Chester Renaissance received the green light from Chester City Council to improve the leisure and business activity in Northgate area through a range of projects.
The programme of work will encourage people to use the shops and facilities in the Northgate and will contribute to the major Northgate development led by ING and planned to start in 2012. The projects in phase one will start this spring and include creating additional car parking in the vacant site on St Martin’s way (subject to planning permission). Other projects will deliver:
* Improvements to the Market car park, toilets and the Market Hall
* Greening Northgate area in conjunction with Britain in Bloom and Cycle Demonstration towns.
*Promoting Northgate through better signage, street entertainments and promotional events.
Rita Waters CEO of Chester Renaissance said ‘This is great news for Northgate and the City Centre. The physical improvements and activity delivered by these projects will maintain and build confidence in Chester as an attractive place to live, visit and invest in.’
Cllr Stuart Parker executive member for development at Chester City Council said ‘I am delighted that we have been able to put this package together with our partners ING and Cheshire County Council. This funding will help reduce the impact of the delay in the Northgate Development and strengthen the Northgate area as an attractive place to shop and be entertained.’
The £120,000 package for the first phase of projects is funded by Chester City Council, Cheshire County Council and ING (developer for the Northgate Development) All projects will be completed in 2009.
In addition to these improvements work is underway to develop a plan to improve performing arts facilities in Chester, in conjunction with Chester Performs. An initial report is expected in February.
Press contact Harriet Woodcock on 01244 402547.
October 2008
NORTHGATE RESCHEDULES TO OVERCOME THE CREDIT CRUNCH
ING Real Estate and Chester City Council confirmed this week that the £460m Northgate Development will be put on hold to ensure it does not suffer as a result of continued economic uncertainty but have reaffirmed their commitment to delivering the £460m regeneration project.
The largest development project in Chester, work on Northgate Development is now expected to start in 2012. ING Real Estate is therefore continuing its discussions to select a preferred development partner towards the end of 2008.
During the interim period, Chester City Council is working in partnership with Chester Renaissance and other agencies to explore ways to continue to improve the City Centre and invest in the existing site. This will include additional cultural events which will be held at different venues across the city.
Cllr Stuart Parker, executive member for development at Chester City Council said: “The credit crunch continues to affect schemes across the UK and it makes sense to postpone the development until the market begins to recover. The scheme remains very much alive and both the City Council and ING Real Estate are dedicated to delivering a new and vibrant quarter for Chester through the Northgate Development.”
The decision to delay will enable the partners to undertake a full review of the project to ensure that it will meet the needs of the City once the market recovers. The partners will undertake a four stage process during the new development programme which will include the selection of a joint venture partner which is currently underway, the redesign and agreement of any changes to the scheme, obtaining new planning permission, compulsory purchase orders and road closure orders.
David Alker, Development Director at ING Real Estate commented: “ING remains fully committed to delivering regeneration for the Northgate Quarter of the city. We have welcomed the opportunity of more time to review the project to provide the best solution we can for Chester, and in the meantime we are pushing ahead with our detailed discussions with interested development partners for the scheme.”
The partners will also undertake a full public consultation to provide the local community with a chance to find out more about the development and any proposed changes.
Cllr Stuart Parker added: “The development agreement, which is a legally binding document, will remain in place and further demonstrates our commitment to the Northgate Development.”
Other developments are also currently underway in Chester, these include; the ongoing Police HQ and Delamere Street as well as a number of hotel developments which are in the pipeline.
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For further information, please contact:
Tearmh France
Account Director, Weber Shandwick
0161 238 9410 or 07770 886 947
tfrance@webershandwick.com
June 2008
As previously advised, consultants acting for both the City Council and ING have been undertaking informal discussions with a number of the key players in the funding market to establish the level of interest in entering into a 50-50 joint venture with ING to deliver the scheme.
ING are maintaining a flexible approach to the discussions, and have invited potential partners to bring forward their own funding proposals for further debate.
Following a series of initial meetings with a significant number of potential funders, interest has been expressed and more detailed discussions will be taking place in the next 2-3 months.
Of critical importance in those discussions is the financial viability of the scheme. The City Council has been working closely with ING on scheme viability which remains challenging partly as a consequence of the current economic conditions. The City Councils agents DTZ are monitoring changes to the appraisal on an ongoing basis.
With regard to timescale, the City Council and ING have an agreed programme which is aimed at reaching unconditionality on the legal documentation by December 2008 with a start on site in early 2009.
Whether or not this can be achieved will be dependent upon the progress made in identifying a funding partner and the absence of any further significant shifts in the financial markets.
March 2008
It was hoped by the City Council and ING that the Northgate scheme would get the go ahead in November 2007. This proved impossible for a number of reasons including uncertainty in the credit markets, commercial and construction price inflation and the impact on property values generally. In the circumstances ING had no choice but to review the programme for the scheme, having particular regard to its financial viability.
The City Council and ING have been in discussion over the last few months, focussing on delivering the entire Northgate scheme without any changes. ING has been trying to reduce the cost of building the scheme and looking at alternative ways to increase income from the completed development. It is hoped a way forward can be identified within the next couple of months.
ING has now proposed November 2008 as the date for the final exchange of all legal documents with a start on site December 2008/January 2009. There are many factors outside the City Council’s control that could influence the timescale.
Effectively this means a 12 month delay to the scheme, which is disappointing for both the council and for ING, who remain committed to this development which is so vitally important to the economic and cultural life of Chester.
December 2007
It was anticipated that the Northgate Development would get the go ahead, or go “unconditional “, at the end of November. However, due to the complexities of the scheme and current market conditions unconditionality has had to be delayed. The volatility of the international money markets and the rising costs of construction mean the timings of the scheme are being reviewed.
The City Council and ING remain committed to the scheme and are working closely together to seek to resolve the issues and realize the Northgate Development. The situation will be re-assessed at the end of March next year. In the meantime further information can be gained from the Northgate Team on northgate@chester.gov.uk or 01244 402508.
October 2007
There was a meeting of the Northgate Forum on Thursday 11th October at 6.30pm in the Town Hall for those people and businesses directly affected by the development. The agenda can be found here. The notes from the Forum can be found here. A presentation was made by the contractors HBG and the developers ING Real Estate - copies of the presentation can be found here and a second presentation is here.
The latest quarterly results for monitoring of air quality have been submitted to the Council and can be found here:
September 2007
The most recent planning permission (ref 07/00061/S73) was granted subject to a Section 106 legal agreement (note: PDF file size is 14mb)
Mid August 2007
The planning application received in January this year (ref 07/00061/S73) which sought to vary specific conditions on the original planning permission has been approved. The decision notice can be viewed here
The approved scheme will provide the following:
Shopping development
Transport and parking
Leisure and entertainment
Homes
New Council Offices
Other features
AUGUST 2007 UPDATE
Northgate Forum Meeting
The next Forum meeting will take place on:
THURSDAY 11th OCTOBER 2007 at 6.30pm in the COUNCIL CHAMBER, TOWN HALL, CHESTER
Items to be discussed will include the demolition method statement for Commerce House, temporary traffic and highway arrangements and other relevant matters.
Air quality monitoring is continuing to take place. The latest results can be found below:
Frequently asked questions relating to the market and buses
When does the market close? - The market hall is moving – it is not closing. It is moving from its current location behind the Forum Shopping Centre to where the library now stands, facing Town Hall Square.
Do I need to stock up on goods I usually buy from the market before it closes? - No, this won’t be necessary as the market stalls will move from their existing location straight to their new location.
Who will own and operate the new market hall? - As with the existing market hall, the new one will be owned and operated by the City Council.
Why are temporary stalls needed on Town Hall Square? - Phase 1 of the new market hall will not be large enough to take all the existing market stall holders so they will be located in temporary stalls from late 2008 until the end of 2011.
How will people get to the existing market when the bus station closes? - A free shuttle bus will collect people from new city centre bus stops and they can get off at a bus stop at the Trinity Street – Hamilton Place junction, by the steps near the former Gateway Theatre, about 3 minutes walk from the existing market.
What is the route of the shuttle buses? - The buses will travel anti-clockwise via the inner ring road, Grosvenor Road, Pepper St, Love St, Argos, Hoole Way roundabout, Gorse Stacks, Delamere St and Fountains Roundabout stopping at new bus stops.
In the new development where is the nearest car park to the market? - The new multi story car park is the nearest to the new market, about 3 minutes walk away. The multi story will open before the existing Princess Street car park closes.