Northgate: What next?

Sep 5 2008 by David Holmes, Chester Chronicle

PROGRESS is being made to get the stalled £460m Northgate Development regeneration project back on track.

Finance house ING Real Estate is to choose its favoured investment partner from a shortlist of three, possibly four developers, with the intention of signing a cast-iron deal by the end of the year.

ING will inform senior city councillors of its decision at a meeting later this month.

The Northgate scheme aims to deliver a new vision for Chester, including a House of Fraser store, new shopping streets, apartments and public amenities such as a performing arts centre.

But the credit crunch meant the scheme hit the buffers last November when an agreement to go “unconditional” – committing all parties beyond the point of no return – did not get signed.

ING has now allocated £30,000 to put hoardings around the unsightly rubble by the inner ring road, ahead of the land being redeveloped.

Cllr Stuart Parker, executive member for development at Chester City Council, said: “ING is more of an investor and the partner they are looking for is more of a developer.

“A lot of schemes are on hold because of the credit crunch so to have three or four who are interested in joining ING to take this forward is quite exciting.”

Cllr Parker will meet in private with ING directors on September 24, along with the city council’s project manager Cliff Mallows to learn who ING’s partner will be.

He understands ING is happy to work with any of the enterprises, which are all major international companies.

It is hoped the project can go unconditional by the end of this year.

The city council is keen to progress matters as the time limit for compulsory purchase orders on buildings which must be demolished to make way for the project expires next September.

Project manager Mr Mallows said having four interested parties was encouraging in the current climate but added whether matters can be progressed would come down to “the deal that is brought to the table”.