'Poor' investor response to regeneration scheme

Council chiefs are struggling to attract an investor for a multi-million-pound regeneration scheme in Worcestershire - saying the response so far has been "poor".

Worcestershire County Council is seeking a development partner for Shrub Hill Quarter in Worcester, a plan for 500 homes, new office, retail and leisure units, a major walking and cycling route and two hectares of public space.

But a new report on the scheme said there had been an "insufficient response" to a hunt for outside investment.

The council - which has a 20-year vision for the site - say they intend to launch a fresh appeal for a partner over the coming months.

Work on the grand plan began last year - with a large industrial unit being demolished to create some space for the revamp.

A shared walking and cycling route linking the development towards Pheasant Street and the city centre is also on track to open on January, in the first significant milestone for the scheme.

Design work is also progressing on Isaac Maddox House, a former NHS building that has stood empty since 2019 that council chiefs want to turn into an 'enterprise centre' containing start-up firms and other creative businesses.

But the report on seeking a development partner says investors want extra flexibility "in how the overall vision is delivered" to make it more viable.

It also raises concern over future phases of the development - with investors wanting to "see evidence" that the council has "meaningful influence" on private landowners who still control portions of the site.

The long-term vision for the site said Shrub Hill Quarter should become a "vibrant new neighbourhood for Worcester" where people can live, work and spend time, with the promise of "new leisure activities".

The site will be discussed by county councillors in a meeting on 19 November.

Councillor Alan Amos, cabinet member for business and skills, said: "The original tender exercise was unsuccessful due to a combination of factors.

"As a result, a proactive decision was taken to withdraw the opportunity and review the proposal.

"This approach allows us to take on board valuable feedback from the commercial development community, who remain very interested in the Shrub Hill development.

"We will be making some refinements before bringing the opportunity back to the market in the spring."

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