THE EASTGATE Shopping Centre has been sold following a drawn-out administration process.
Galliard Homes and DVS Ground Rent have purchased the centre from InfraRed UK for an undisclosed fee after the firm entered administration in November 2022.
Bosses at developer Galliard Homes says they want to deliver “a successful and sustainable Eastgate shopping centre”.
Get more great stories like this delivered to your inbox every day by signing up to our morning newsletter - don't miss out!
The company has built a reputation for towering and eye-catching housing developments, such as the glistening and twisting 45-storey Baltimore Tower on the Isle of Dogs and the futuristic under-construction 37-storey Shoreditch block knows as The Stage.
Approved plans for part-demolition of the Eastgate to build 2,800 homes made the centre an enticing prospect for developers – as any new application on the site would likely be approved as principal development has already been agreed.
Toby Ogilvie Smals, director of retail investment at Savills, who acted as agents for the seller, said: “We had good interest and a good number of offers for the asset, it was a competitive process.
“With the big empty former Debenhams store, it was difficult from an income perspective, which is why developers were more competitive in bidding.”
Mr Smals says Galliard Homes provided a time-effective and deliverable plan for development that would not be “entirely residential” – echoing the former owner’s approved project.
A Galliard Homes spokesman said: “We are committed to working closely with the existing tenants and the local authority to ensure that the centre remains a vibrant and thriving hub of activity. We will not be pursuing the existing residential consent and we recognise the importance of the centre to the local economy and are committed to support its growth and development.
“The consortium brings together a wealth of experience and expertise in property development, management and investment. We are confident that our collective skills and knowledge will enable us to deliver on our promise of securing the long-term future of the centre, while also creating new opportunities for the community and driving economic growth in the wider region.”
InfraRed purchased the shopping centre from property firm British Land for £88.6 million in 2014.
At the time, the centre boasted many big high street retail names.
However, repeated Covid-19 lockdowns saw many of Eastgate’s high profile brands abandon the centre, with Debenhams, Next, Topshop, Build-A-Bear and H&M all ceasing operations in 2021.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel