TWO of the biggest objectors to the planned £750m retail scheme for Liverpool city centre reached a last-minute to sell their land to the developer.

The successful negotiations are a huge boost to the project and mean a crucial plot of land on Paradise Street - comprising the Queens Moat House hotel and

Street bus station - has now been secured by site developer Grosvenor.

The company, owned by the Duke of Westminster, will pay £20m for the hotel site - and then demolish it.

Both the hotel and bus station will be flattened by the developer as it attempts to breath new life into Liverpool's retail heartland. A spokesman for Queens Moat House said the sale was conditional upon the Government approving the compulsory purchase orders (CPOs) in the area.

He said: "As at December 29, 2002, the hotel had a book value of £18m and the board believes that the disposal consideration would be greater than any potential valuation determined by a land tribunal."

Grosvenor will take possesion of the hotel between July 2004 and January 2005.

The Moat House, which has 263 rooms, generated profits of £2.5m on turnover of £6.5m during 2002.

The agreements were reported to inspector Derek Mumford as he wound up the public inquiry into the CPOs sought by Grosvenor and the city council to assemble the land for the redevelopment.

It means the objections made during the inquiry by Queens Moat House and Merseytravel, which operates the bus station, will now be disregarded.

The Grosvenor project includes a new bus station and will also have room for new Merseytram services to come up Paradise Street.

Neil Scales, chief executive of Merseytravel, said: "We're delighted that we are going to be working with Grosvenor to ensure the tram system complements their development." Mr Mumford is expected to make his recommendation on the CPOs to the Government by the end of January.

A total of 52 objections were made to the CPOs at the start of the public inquiry but 32 had been settled by its conclusion.

But 20 objections remain from the likes of Arcadia, which owns the HMV/Top Shop stores, HSBC bank, Atmore which owns the Argos building, and Quiggins cultural and retail centre.

Grosvenor director Rodney Holmes said: "As we said in our closing submissions, it is remarkable that for a development of this size, we have been right through the inquiry and there has been unanimous support for the principle of the project.

"The objectors' case has been that the project could go ahead without their own particular property. We believe they are all needed to make the scheme work.

Debenhams likely to take second big store

THE Grosvenor project was further boosted last night by news that Debenhams will shortly confirm its intention to open a major new Liverpool department store.

The fashion retailer is expected to sign a lease in two weeks time.

If the deal is confirmed, the retail giant would be the second anchor tenant in Grosvenor's city centre scheme. John Lewis has already agreed to occupy one major department store building.

Grosvenor's project director Rod Holmes said: "The proposal goes to the

full Debenhams board later this month. If everything goes well, we will have final confirmation by the end of November."

The nearest Debenhams stores are in Southport and Chester.

"The second anchor store is situated on Lord Street opposite the corner of South John Street and comprises 180,000 sq ft of retail space."

The John Lewis Partnership is taking the 230,000 sq ft anchor store at the southern end of Paradise Street.

A spokesman for Debenhams said: "As a public company, any major announcement about a new store must be made to the stock market first before we can make any comment on it."

A third anchor store has been identified but Grosvenor is not expecting to confirm a tenant for around 18 months.