The developer behind Lyons Sleeman & Hoare’s £300 million regeneration scheme in Wolverhampton is hunting for new investors following the withdrawal of city council funding
Wolverhampton City Council has been recommended to withdraw its funding for the shopping, leisure and residential project following a detailed financial review of the scheme.
It is the latest blow for developer Multi’s Summer Row scheme, which suffered a setback in 2008 when its main investors removed its financial backing.
Multi wants to build a three-storey, 6,500m² Debenhams store as part of the development as well as 140 apartments, a public realm and bars.
A compulsory purchase order for the land runs out on February 12. In a report, officers told the local authority that there are too many financial uncertainties and risks to iron out within the deadline. The council did not say how much it planned to invest in the project.
Multi UK managing director, Paul Sargent, said: ‘Naturally, we are deeply disappointed at the council’s decision after six years working on Summer Row, but we are sympathetic with the council’s viewpoint in the current economic climate of uncertainty.’