MYSTERY surrounds the identity of an investment company who have taken a 50% stake in the Northgate development project after striking a deal with the bank behind the troubled £460m scheme.
Cllr Stuart Parker, city council development executive member, learned on Wednesday that ING had come to an arrangement with the undisclosed joint venture partner.
For legal reasons he was unable to reveal the name of the company at this stage. However, the project, which stalled due to the credit crunch, still won’t start until 2012 at the earliest.
Cllr Parker said: “ING has now selected its JV partner as it stands at this moment I can’t release who it is.”
He said a combined statement would have to be agreed between the council, ING and the partners before the mystery investor could be unveiled.
Cllr Parker said only that ING had been in a position to choose between two investors. He added that the ING board had sanctioned money for the project to progress to the next stage.
“At least things are progressing in the right direction,” he added. “We can start a dialogue and agree how the scheme is going to continue and what changes are going to be made.”
David Alker, development director with ING Real Estate, told The Chronicle in November that no construction work was likely to start until 2012 following a complete redesign.
He said the current scheme, which would have delivered a new House of Fraser department store, shopping streets and public amenities like a performing arts centre, was no longer profitable.
Mr Alker indicated the new project would include a larger retail element and declined to speculate on which aspects might be lost and whether the performing arts centre could be a casualty.
He expected a planning application to be submitted early in 2010. Compulsory Purchase Orders on buildings, which will have to be demolished to make way for the project, must be lodged afresh with the expectation of another lengthy public inquiry.
Interim measures are expected to be approved next week to smarten up the Northgate regeneration area including tidying up the Princess Street bus exchange and bringing vacated buildings back into use.
