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Council’s ‘risky and shrouded in secrecy’ £21m mall buy-out criticised by opposition

The acquisition of a £21m shopping centre by a Somerset council has been blasted by opposition council members who claim the deal was “shrouded” in secrecy.

North Somerset Council’s buy-out of Weston-super-Mare’s premium Sovereign Shopping Centre last week was dubbed as a “bold and innovative” decision by Cabinet member Cllr David Pasley last week, yet opponents have claimed the £100m borrowed for investments could be put to better use.

The move, acquired in partnership with financial firm Legal & General, will be leased back to the council for 35 years, at which point it will be owned by the authority. The council’s yearly upkeep will be at £718,000 a year, rising with inflation but capped at 4%.

Liberal Democrat councillor Mike Bell said he was “in favour of investments that can generate income,” but noted that the purchase of Sovereign was “risky.”

“Retail is a volatile and fast-changing market, with traditional retail centres struggling and there is a real risk that vacant units won’t be let and that anchor tenants will be lost – then what? This is a risky purchase that has been shrouded in secrecy.” he asked.

“This is typical of a Conservative administration that does what it likes, is accountable to nobody and simply announces decisions to residents, with no explanation, debate or consultation. Whatever the outcome, it will be local residents and businesses who will bear the consequences, for good or ill. And we will know to whom to attribute blame or credit in the decades to come.”

Cllr Bell noted that the council has no record in retail and will either have to “muddle through” or pay external experts to manage operations. He also highlighted a potential conflict of interest with the authority now having to prioritise tenants at Sovereign over other independent retailers in surrounding areas like Meadow Street, Orchard Street, or St. James Street.

Independent councillor and leader of the opposition Donald Davies told Bristol Live that he found the acquisition “quite troubling.”

“Shouldn’t local services be paid for by the government and local people? You shouldn’t be scrabbling around making deals like this,” he added. “It’s not being led by town centre regeneration, it’s being led by income generation - and that’s not a good thing."

But Pete Gladwell, head of public sector partnerships at Legal & General, said last week: “By partnering with a progressive and proactive council, we can enable the regeneration of necessary retail provision for the area, deliver them sizeable revenue surpluses, and act as a catalyst for their plans for wider regeneration, boosting local jobs, homes, and driving economic growth.”

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