UK: Knight Frank has been appointed by Columbia Threadneedle Investments to market a regeneration opportunity in Norwich.
Anglia Square, an 11.4-acre site in the city centre, is being brought to market with a guide price of £8.5 million.
Located 500 metres from Norwich City Hall and the city’s historic market, the site has planning permission for a mixed-use scheme comprising up to 1,100 residential units, as well as 8,000 square metres of flexible commercial space.
The site currently consists of a covered 34-unit retail mall, former cinema, two office buildings, a multi-storey car park and two nightclubs. The existing site generates a current annual rental income of £698,000 and holds significant opportunity for additional income according to Knight Frank.
It was due to be developed by housebuilder Weston Homes, which withdrew from the scheme due to “seven key issues which have led to delays in the scheme, additional costs and negatively impacted on the financial viability of the project”.
In February, Bob Weston, chairman and managing director of Weston Homes, said: “It is with deep regret that after eight years of hard work, substantial staff time and resources and some £7.5 million of capital expenditure, Weston Homes has been forced to cancel our plans for the redevelopment of Anglia Square. I am personally gutted to have to write-off millions of pounds of company investment and not have a new scheme to show at the end of the venture. Weston Homes has bent over backwards to make this work and we have worked closely with Norwich City Council and the people of Norwich to try and realise a scheme that meets both local aspirations and is financially viable. I would like to add that throughout the eight-year process, Norwich City Council cabinet and officers have worked tirelessly to facilitate the redevelopment of Anglia Square.”
Charlie Hart, head of development land at Knight Frank, said: “We are pleased to be offering Anglia Square for sale on behalf of Columbia Threadneedle Investments. It has been a priority asset for Norwich for over two decades, and despite the well-publicised withdrawal by Weston Homes earlier this year, we are very excited about the prospects for the property looking forward.”
“Viability challenges exist across the regional UK for high density development, but we know outstanding mixed-use development is deliverable today, subject of course to identifying the appropriate complimentary mix of uses and density thresholds. In this instance, Anglia Square has strong income potential from a range of tenant types, as well as ‘easy wins’ for early disposals and development. This gives an incoming purchaser real optionality on how to address the development outcome, whilst enjoying income from working the existing buildings and spaces in an entrepreneurial manner,” he added.
