At a meeting of Chesterfield Borough Council on Wednesday 10 February 2021, councillors voted in favour of acquiring the leasehold of The Pavements Shopping Centre in Chesterfield.
Chesterfield Borough Council currently owns the land (the freehold) on which the shopping centre is built but the leasehold is held by a successor company to the CIN Pension Fund which originally built The Pavements back in the early 1980’s. The council then manages and operates the shopping centre through an under-lease arrangement between the leaseholder and the council.
The decision is subject to further due diligence and agreement of terms.
Councillor Tricia Gilby, leader of Chesterfield Borough Council, said: “The Pavements Shopping Centre plays a pivotal role in welcoming shoppers and visitors to Chesterfield town centre.
“Assuming we are successful in acquiring the leasehold, the council will be able to control the future direction of the shopping centre; shape the Southern Gateway to Chesterfield town centre; and build on the council’s many other ambitious plans for the town centre.”
The council has taken specialist advice from property investment advisors, who concluded it is financially prudent for the council to try and acquire the leasehold at this time.
Ms Gilby added: “Through this action, the council is seeking to secure the future of The Pavements Shopping Centre as a high-profile strategic town centre asset whilst at the same time protecting the council’s financial position.
“Negotiations between the council and the leaseholder have commenced, and we would hope that the terms of the acquisition can be finalised by the end of March 2021.”