Developer pulls out of Princesshay extension

The Crown Estate and its partner TH Real Estate has pulled out of a proposed 75 million pound extension to the Princesshay shopping centre in Exeter citing “current market conditions”.

In a statement, The Crown Estate explained that within the current market “many retailers and restaurateurs are now more cautious about making new commitments, particularly in proposed developments, which take time to build and therefore require a commitment several years ahead”.

The proposals for the extension were first submitted for planning approval in July 2015 and included the redevelopment of the bus and coach station site to create a new leisure arm to the shopping centre that would include new restaurants, shops and a cinema, as well as a new city centre public square and amphitheatre.

John Grinnell, deputy head of development and project management at The Crown Estate, said: “We know this is disappointing news for many people, including for our own team who have been working hard for over two years, along with a team of architects, agents and advisors, to try to make this project work.

“We want to be clear that we remain as committed as ever to Exeter and to the existing Princesshay centre, which is a fantastic shopping and restaurant destination in its own right. We’re now looking at what more we can do at Princesshay to further enhance the experience for shoppers and will continue to work closely with the Council and others in the area to help achieve this.”

Princesshay extension axed due to “current market conditions”

The shopping centre, which celebrated its 10th birthday earlier this month, is home to more than 70 high street stores, including Topshop, Topman, River Island, New Look, Reiss, and Joules, and in recent months it has welcomed New Look Men and Lush to its retail offering.

Commenting on the cancellation of the development, Derek Phillips, vice president of Exeter Chamber, which supported the proposed plans, said: “The Chamber is disappointed that the developers have pulled out of the scheme. We fully support the City Council in seeking an alternative proposal to ensure that this very important area is improved, to complement the great success of Princesshay.”

Exeter City Council leader Pete Edwards, said: “The Crown Estate/TH Real Estate have informed us they are no longer able to proceed with their plans for the redevelopment of the city centre site. They cited market conditions when we visited them in person.

“In addition, negotiations over the tender for our scheme has proved difficult - with a risk that costs could escalate further. This is unacceptable to us. Therefore I intend to ask the council to retender with a view to addressing design implications imposed by The Crown Estate/TH Real Estate’s withdrawal.

Edwards added: “This is likely to have an impact on the timeline by around a year - potentially opening now in 2020. Our resolve and ambition, to create a strong city centre, remains.”

Images: via Princesshay Exeter Facebook