Bishop Auckland’s struggling shopping centre is to be put up for sale just four years after it was bought in a bid to revive the town centre, writes Local Democracy Reporter, Bill Edgar.
Durham County Council has written to tenants confirming its intention to market the centre for sale, but insisted it will be “business as usual” for traders during the process.
The local authority bought the Newgate Centre for £3.31 million in 2022, setting out ambitions to regenerate the shopping centre as part of wider investment in Bishop Auckland.
However, changing shopping habits and the collapse of several major high street retailers have left much of the centre vacant.
Earlier this year, the council acknowledged the scale of the challenge facing the shopping centre, saying significant work would be needed to attract new retailers.
At a meeting of the council’s corporate overview and scrutiny committee, councillors urged the authority to consider alternative options for the site, with one member describing the Newgate Centre as “vacant and an eyesore”.
Bishop Auckland town centre has been the focus of a multi-million-pound regeneration programme involving the council and the Auckland Project, but businesses have faced growing competition from the expanding retail park at Tindale.
In a letter to occupiers, the authority said it wanted to reassure tenants, customers and visitors that it would continue to meet its responsibilities as landlord throughout the marketing period.
It added that tenants should continue to contact the council and its managing agents in the usual way, while property consultants Savills had been appointed to market the site on its behalf.
The letter reads: “This forms part of the council’s ongoing property asset management strategy and will not affect the day-to-day operation or management of the centre. It remains business as usual for all tenants, customers and visitors.
“Durham County Council will continue to fulfil its obligations as landlord throughout the marketing period. Tenants are therefore asked to continue liaising with the council and its managing agents in the usual manner.”
The local authority expects to put the shopping centre up for sale later this month.
Paul Darby, Durham County Council’s corporate director for resources, said: “We have informed tenants that we intend to explore opportunities to secure a buyer for the Newgate Centre and are hoping to formally market the property by the end of the month.
“We will be looking for an investor with specific experience in operating shopping centres and who is able to invest appropriately in the Newgate Centre in order that it can support the regeneration and growth of Bishop Auckland.”
Bill Edgar
Reporter for the Local Democracy Reporter Service.
Bishop Auckland's local community newspaper.
