Rotherham Council chops Oak convention centre project

Rotherham Borough Council has ripped up an
agreement signed in 2008 for AIM-listed Oak Holdings to develop a £350m leisure
resort next to the Rother
Valley Country Park
in South Yorkshire. Plans for the YES leisure
development had included 23,225sqm of convention
space.

Oak signed a preferred developer agreement with the
council in August 2008 which it had hoped would create one of the largest
undercover leisure-based resort and convention centres in Europe.

A statement from Oak to the stock exchange
said: “The global financial crisis and depressed property markets have resulted
in Oak being unable to secure the funds needed to commence the development phase
of the project. As a result of these challenges, and notwithstanding Oak’s
renewed planning consent on the YES project, RMBC has taken the decision not to
extend, and cancel the current development
agreement.”

 The council had granted Oak a 250-year lease of
the site for the scheme which was to include large entertainment, hotel and spa,
sports and retail facilities, as well as 19,500sqm of performance space.

In other real estate news serviced-office operator
Regus
 is one of the big name companies at Reading’s
£400m Green
Park business park that
could be getting a new landlord if plans for a sale go
through.

Current owner, property fund manager Prupim,
has said it is keen to reduce its exposure to Green Park, “given the large capital value of
the asset”. Prupim’s
preference, according to property analysts, is for a joint venture partner.

Green Park, according
to Property Week, already has
some of the country’s highest vacancy rates, despite being situated near Junction 11 on the M4 next to the Madejski Stadium.

The news comes a few days after Prupim completed
the £125m purchase of three supermarkets on a sale-and-leaseback basis for its
parent company M&G’s Secured Property Income
Fund.

Got a property-related news line for Conference
News, Email: pcolston@mashmedia.net

Paul Colston

Author

Paul Colston

Managing Editor, Conference News & Conference & Meetings World.

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