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Developer Appeals 'Disgusting' Rejection of £115 Million Makeover Plans

Government Will Hold a Public Inquiry Reviewing Lochailort's Plans for Residential-Led Makeover of Berkshire Mall
Kennet Centre, Newbury. (CoStar)
Kennet Centre, Newbury. (CoStar)
CoStar News
June 14, 2023 | 1:24 P.M.

The government will conduct an inquiry into West Berkshire District Council's rejection of Lochailort's plans for a £115 million mixed-use makeover of the Kennet Centre shopping centre in Newbury, which the developer has described as "disgusting".

West Berkshire council provided nine reasons when it robustly rejected the plans for the Eagle Quarter scheme, which would demolish the mall, last year. The authority issued a delegated decision in November 2022, rejecting the plans for 367 homes, 30 flexible retail units and either a tech incubator hub or 91 retirement homes.

The council called it "an overpowering and dominant feature within the town centre".

"To introduce a development of the scale and height proposed in the historic core of Newbury would alter the character of the conservation area and introduce a false narrative to Newbury's past," it added.

The council said it did not offer enough affordable housing and open space for the 367 proposed flats. It also criticised the parking arrangements and said there was a risk of greater on-street parking because of it. It also said that insufficient information had been given about the sustainable management of surface water and flood risk.

According to a response for information from West Berkshire District Council, Lochailort has now appealed to the Secretary of State and this will now be determined by the Planning Inspectorate at an inquiry.

Historic England had already objected to West Berkshire Council, writing: “We do not consider the heritage benefits alone, which are limited to a slight improvement in facades (other heritage benefits claimed as part of the application are of little real value), come close to outweighing the harm that would be caused."

Speaking to the Thames Tap publication last November about the council's decision, Hugo Haig, director of developer Lochailort, said: “Truly, I think it is disgusting that these public servants charge £175,000 for the privilege of submitting an application and then, when having addressed their concerns and having got them to say ‘it’s fantastic’, do a volte-face and issue a delegated refusal because the Newbury Preservation Society (some unelected minority purporting to be the mouthpiece of the town) have managed to persuade someone at Historic England to say that he actually quite likes the existing 70s concrete box, and that our scheme is too high (it happens to be lower than the recent Parkway Shopping Centre redevelopment in the town). The way we are made to go about this is fundamentally wrong."

HIG Capital and Hermes Real Estate Investment Management sold the Kennet Centre to Lochailort for £9 million in 2019.

The centre comprises 243,813 square feet of net retail and leisure space and at the time was multilet to tenants including Vue Cinemas, Laura Ashley and Pizza Express. Asset manager RivingtonHark said the property was bought to “revitalise” the centre’s offering and improve on the services delivered.

The original plans proposed a mix of build-to-rent and private sales and the flexible retail would include shops, restaurants and co-working spaces, targeting local, independent and artisan businesses.

There would also be new pedestrian connections linking the railway station, market place and the town centre and new landscaped public realm.

Also proposed was a health centre, on-site resident’s gym, squash court, meeting rooms, dining rooms, garden terraces and a lounge for the scheme’s residents.

The plans also include improvements to the town's existing Vue cinema and multistorey car park, adding one floor and electric vehicle charging points.

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