 |
Breath of fresh air
26 January 2008
New life Estates Gazette takes a look at Derby Cityscape's ambitious plans for the regeneration of Derby's run-down Castleward area ahead of its impending launch to the market. Ian Halstead reports
Castleward is just the kind of major project that regeneration companies were created to spawn, breathing life into shabby and run-down areas. By 2020, urban regeneration company Derby Cityscape hopes that the 39 acres of urban wasteland between the Derby's prime business location, Pride Park, and its retail heart, Westfield Derby, will have disappeared.
In its place, it wants to see an urban village with a tree-lined boulevard - Castleward Avenue - at its heart. This will finally link the railway station, major plans are also afoot, to the city centre.
But three are many hurdles to cross, including finding a development partner. Proposals for Castleward Quarter comprise 1,500 flats and family-friendly homes, 520,000 sq ft of offices, a three-star, 200-bedroom hotel and 3,000 sq ft of retail, plus two multi-storey car parks housing 1,050 parking spaces, and public open spaces, including Carrington Square.
"Castleward is the kind of scheme Derby has always needed," says Tim Richardson, associate at local agent Innes England. "The present centre is much smaller than other regional cities, such as Leicester, Nottingham and Leeds, and it's been a severe constraint to development."
Derby Cityscape is about to launch its search for a lead developer via the traditional route of the Official Journal of the European Union. Cityscape development director David Marshall anticipates site work beginning in early 2010, with construction phased until 2020.
Meanwhile, chief executive John Cadwallader is hoping Castleward's birth pains are finally over, after an earlier relationship with a developer collapsed. The first phase - North Castleward - covers 6 acres at the city-centre end of the site, owned by motor dealer Speeds.
Months of delays
Last year, Henry Boot Developments reached a provisional agreement for a scheme - 250,000 sq ft of offices, plus a hotel and small shops - with Cityscape. Henry Boot was expected to submit plans last autumn, but Speeds pulled the plug, causing months of delays.
"Speeds wasn't particularly impressed when Henry Boot's name came into the public domain before negotiations were completed," says one local agent. "As a result, a new developer is being sought, and everyone has signed watertight confidentiality agreements."
The main phase - known as Core Castleward - is a sprawling 33-acre stretch towards the railway station, where the critical issue is the relocation of tenants. Much of the land is occupied by around 100 businesses, from small engineering firms and machine shops to a concrete batching plant and a car showroom. Cityscape believes it needs 18 acres of relocation space, but suitable sites are scarce.
Marshall admits that Cityscape was rebuffed in five attempts to acquire land last year. "In some cases, the sites went for residential uses, in others our bid was too low," he says. "Under government rules, we can only offer what we see as market value, whereas private developers can obviously bid more. We've pulled together a plan of who owns what as a prelude to CPO-type discussions."
Earlier this month, the URC finally obtained its first relocation site - 6.2 acres at the back of Cedar House Investments' Axion Business Park, at Raynesway. The purchase, funded by the East Midlands Development Agency, had an unusual backdrop.
Cityscape had previously failed to buy the land - part of a former BOC bottling plant - before Cedar House bought the entire 10-acre site last October. However, the sale does not appear to have cost EMDA over the odds. It is believed both transactions went through at around £350,000 per acre.
It is certainly a good deal for Cedar House managing director Chris Carlisle. His scheme gains critical mass, making it easier to market the front of the scheme, and Cedar becomes the preferred developer for all firms relocating from Castleward.
Marshall believes the purchase is equally good for Cityscape, as the land could hold around 110,000 sq ft of space, around one-third of its relocation requirement.
Elsewhere, two street-level car parks - owned by Derby Hospitals NHS foundation trust - are seen by Cityscape as key elements to the mooted boulevard, which forms Castleward's arterial spine.
Cadwallader and Marshall believe the land can be acquired with relative ease, as the users - staff from the nearby Derbyshire Royal Infirmary - are relocating outside the city in 2009.
However, market observers believe this is far from a done deal. "The trust might sell Cityscape the land," says one. "Then again, it might ignore Cityscape and bring the site forward with its own development partner. It certainly won't be easy."
The jury is out on Cityscape's delivery strategy, but the scheme is welcomed by Russell Rigby, director at local agent Rigby & Co. "Its plans are ambitious, given the run-down state of the Castleward area and the complexity surrounding ownership issues," he says. "A well-defined pedestrian link from the Westfield Centre to the railway station is urgently required, and I'm sure developers and investors will view Cityscape's proposals with interest."
City legacy
Meanwhile, a local agent who prefers to remain nameless adds: "John Cadwallader has certainly had his critics but, if Castleward succeeds, it will be his legacy to the city."
The Cityscape chief responds by saying: "Whatever people say, we've done the number crunching on Castleward, and are sure it will be viable and sustainable. Our baseline study in 2001 stressed the need for an expanded city centre and new commercial office space, which is what we will deliver."
So what kind of preferred developer is Cityscape seeking - a major brand such as Urban Splash, or a regional player such as Wilson Bowden?
Cadwallader will not be drawn. "It could be Joe Bloggs from down the road, or it could be someone from overseas. We aren't ruling anyone out, or anyone in," he says.
Proposals for Derby railway station
l 380,000 sq ft of offices in the area bounded by London Road, Midland Road and the station itself
l 17,000 sq ft of retail space in and around the station
l Extensive upgrading of the station with Network Rail to include £20m on renewing the canopies, on which work is starting this month, and a new transport interchange
l Completion is due by 2020