Case Study: Thornaby - The PavilionsPublished on: 12th September 2014
A £30 million public/private partnership between Stockton Borough Council and Thornfield PLC to regenerate the Pavilion Shopping Centre in Thornaby, creating a new regional shopping centre of 270,000 sq ft.
This has completely transformed the Town Centre with a mix of retailers including New Look, Boots, Superdrug, Asda, Grainger Games, Wilkinson, and more, along with the adjoining Pavilion Leisure Centre and new Public Library.
We were involved from inception with the initial retail demand study and evaluation of bidder’s proposed schemes, resulting in award of preferred developer status to Thornfield Plc.
We advised the Council throughout development agreement negotiations, in particular advising on liability arising from CPO of 61 interests, funding arrangements, clawback provision in the case of default, level of developers bond, indemnity clause and disposal provisions including apportionment and overage.
We marketed the new scheme for Thornfield to achieve pre-let levels necessary for viability and new national retailers were successfully secured with the scheme 90% let at the date of freehold disposal.
Pre compulsory purchase negotiations with 51 tenants and compensation was agreed on relocation & extinguishment basis by our team. We also provided strategic advice on the CPO process, appointment of land referencer, preparation of statement of case and expert evidence for Public Inquiry.
Full development appraisal for loan security was undertaken by our valuation team with assistance from retail consultancy and the building team.
The asset management team established a service charge policy for redevelopment, recruitment of Town Centre manager and staff.
Finally our Retail Agency Team successfully disposed of the freehold interest in the scheme.