Council may buy back mall

Neal Keeling

February 19, 2009

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COUNCIL bosses have said they will consider buying back a struggling shopping mall.

Salford council sold the freehold on Swinton Shopping Centre for £3.2m in 2002.

Current owners Miller Developments say they are now be prepared to let them buy it all back - freehold, buildings and land. Last time it changed hands was for £29.5m in 2005.

The council currently pays Miller £80,000 a year to rent an area in the mall for a market.

The 1969 mall had a facelift in the early 1990s but traders claim business has been hit by a new pay and display car park.

The complex is next to the Lancastrian Hall, which could be demolished to make way for a `Gateway' centre for health and council services.

Miller have now suggested that buying the mall would give the council control over the whole town centre.

City planning boss Derek Antrobus said: "We cannot contemplate the private sector offloading unwanted assets on to the council taxpayer."

But he added that if the precinct could `change ownership without penalising the taxpayer, we will look at it'.

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Mike S, Manchester (19/02/2009 at 10:23)

Sold for £3.2M in 2002 and then £29.5M in 2005? Someone at the council needs firing and an inquiry needs to be conducted. Properties did not rise by 920% in those 3 years!!

Doobydoo, Worsley (19/02/2009 at 12:17)

So Swinton is struggling and therefore the council are considering buying it back? I wish they would do the same with Walkden Shopping Centre which in the not too distant future will consist of ...............TESCO!

Mad Welsh Scotsman, Cadishead (19/02/2009 at 12:51)

All the precincts in Salford are struggling, as probably everywhere else. It's because nobody has any money to spend. Shuttering companies are the only ones who seem to be doing business

By the way Mike S, good point, somebody does need to be investigated

andanotherthing, Mcr (19/02/2009 at 14:07)

Good heavens, more tax payers money being squandered.

Councillor Derek Antrobus, Salford City Council (19/02/2009 at 17:42)

There is no chance of the Council buying this shoppinmg precinct. That is what I meant when I said we could not contemplate the private sector offloading their assets on to the Council.

If, however, the current owners are prepared to sell their interest to some other body - such as a cooperative of traders and consumers - that is something we would support - as long as it did not involve the council putting in taxpayers' money.

Mike S. needs to read the article again. The council has never owned the precinct - just the land it was built on. We sold the land for £3.2 million (precisely what it was worth) but we have never owned the buildings or had a right to the rental income. Those are the things that were worth £29.5 million.

Mike S, Manchester (21/02/2009 at 00:12)

My apologies Councillor Antribus. However, it is my understanding that the majority of the value of urban property is the land itself, rather than the buildings upon it (which are only bricks and mortar at the end of the day). I still find it astonishing that there was such a dichotomy in the sale prices in only 3 years. Are you suggesting that the mall buildings are worth in excess of £25M and the land still only £3.2M? I'm sure it will come as great comfort to the hundreds of council workers Salford Council is looking to make redundant, particularly if the council does buy it back (although you have confirmed this will not happen).

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