PLANS for 2,800 homes and the part demolition of the Eastgate Shopping Centre have been scrapped following the sale of the centre.

Financially stricken former owner Infrared has sold the centre under administration to Galliard Homes and DVS Ground Rent in a joint venture deal.

Plans to to build 2,800 homes, retail and commercial space across several tower blocks, the largest of which would be 21 storeys tall, were approved at appeal in September.

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Galliard Homes has confirmed it will continue to support the existing shopping centre and will not be pursuing the existing planning consent.

Echo: Eastgate Shopping CentreEastgate Shopping Centre (Image: Newsquest)

Following discussions with the new owners, council bosses say they understand homes will be built on the site, and are expecting new plans to be submitted in due course.

“We can expect a large number of homes to be built, but we will have to wait and see what the buyer wants to do,” Conservative councillor Craig Rimmer, responsible for regeneration, said.

“Since those plans [Infrared's] were submitted, the market has shifted somewhat and companies now face a different proposition viability-wise.

Echo: InfraRed's approved proposals for the Eastgate siteInfraRed's approved proposals for the Eastgate site (Image: InfraRed)

“With the construction costs much higher than they were, my expectation is that they take another look and come in with some changes or plans of their own.”

He added: “But, as a realist, I know Galliard Homes starts with a bigger envelope to work with than InfraRed had.

Echo: Inside the EastgateInside the Eastgate (Image: Newsquest)

"We are trying to work with them, on a plan that works with our vision in terms of the amount of shops, community space and the affordable housing provision.”

Under the approved scheme, the eastern part of the shopping centre and Debenhams would have been demolished to make way for the homes.

Echo: How the Eastgate would have looked under InfraRed's plansHow the Eastgate would have looked under InfraRed's plans (Image: InfraRed)

 

Conservative council leader Andrew Baggott says the council remains opposed to homes on the site, but added he was prepared to work with the new owner for a mutually beneficial outcome.

“We were adamant and consistent in saying that the public and we did not want high-rise monstrosities in the town centre,” he told the Echo.

“Obviously we are bound by planning law, but our position remains the same and we hope to engage with the new owners in a proactive and constructive way.”