Calls for investigation into shopping centres purchase rejected

Calls for an investigation into how the £52 million valuation of the Shrewsbury shopping centres was arrived at have been rejected by Shropshire Council.

The decision to buy the centres, which have plummeted in value to just £17.5 million within two years, has come under renewed criticism from opposition councillors who labelled the purchase “financial mismanagement”.

But their request for more information about what advice the council received when agreeing the deal were rejected at a meeting of the full council on Thursday.

Members voted down a motion tabled by Councillor Roger Evans, leader of the Liberal Democrat group, to ask officers to produce a report on the subject to be presented at the next full council meeting in February 2021.

Councillor Evans said the purchase of the centres was a “disastrous investment”, in particular the failure to obtain a valuation of one of the three buildings, which was highlighted by the authority’s auditors as a concern at the time.

But council leader Peter Nutting said the purchase was intended to give the authority more control over the regeneration of the town centre and was not financially motivated.

Councillor Nutting said: “This wasn’t a financial investment. This was to enable the wider place-shaping of Shrewsbury, which we believe will support the wider economy of Shropshire.”

Councillor David Vasmer spoke in support of the motion, saying: “The council didn’t actually investigate the value of this centre.

“This motion is about looking at that decision and learning the lessons of good financial management.

“We are not discussing how important it is to revive Shrewsbury town centre and make it a better place to shop.

“What we are calling for here is an investigation into the decision to buy the shopping centres and the way in which that decision was made.

“It’s a question of financial mismanagement, in my view, that we paid so much money for three shopping centres which then declined in value. Who else buys a property that loses its value so disastrously over a short period of time?

“We have to learn the lessons. We cannot throw around the council’s money in this way – it’s quite scandalous.”

The motion failed to win support, with 20 votes for and 37 against.

Members were also told that ownership of the shopping centres, which were purchased through Jersey Property Unit Trusts (JPUTs) would at last be brought onshore in the new year, in time for the planned demolition of the Riverside centre to begin.

Councillor Steve Charmley, portfolio holder for assets, said: “I am happy to report that the process was started a couple of months ago and it will be completed in January of February of next year.

“We are currently procuring a demolition partner for the site and work will start on site in the new year.”