Traders fears over shop centres sale

Shrewsbury's business leaders today said it would be devastating for the town if any businesses were to suffer due to the sale of the town's three main shopping centres.

But they said they were hopeful the enforced sale of the Darwin, Pride Hill and Riverside shopping centres would be a seamless process that would not impact on individual shops.

It was revealed yesterday that the centres, which were bought for £118 million by Protego Real Estate Investors just three years ago, are now set to be sold for less than half that amount.

The sale follows the collapse of American bank Lehman Brothers last year, from which Protego had bought debt in the run-up to the purchase of the centres in 2006.

But after the collapse of the bank last year, administrators have now decided that the centres must be sold.

Simon Airey, chairman of Shrewsbury Business Chamber, today said he believed the sale was happening during a pivotal moment for the centres with the arrival of new businesses such as fashion retailer H&M.

He said: "I think it's a great shame that the sale is being forced by something that is out of their control. These are the repercussions that are happening because of the collapse of the banking system.

"As a business chamber we hope it is bought by someone who will run it as successfully as it has been to date. We have got H&M coming and we hope that this doesn't detract from any of that.

"The new owners will need to be as successful as possible and keep the units let."

John Hall, chairman of the Shop in the Loop group, which represents some members from the shopping centres, said he believed that the centres would be a great opportunity for an investor.

He said: "I think it would be a really good investment and if I had that sort of money I would be looking to invest it in Shrewsbury because it seems to be riding out the recession better than other town centres.

"I think it will probably be a fairly seamless transfer," he added.

Charles Weeks, joint founder of Protego, says he believes the centres will be marketed for between £40 million and £50 million.

He said that secondary shopping centres such as the one in Shrewsbury had been the hardest-hit sector of the commercial property market during the recession.

By Russell Roberts