£50m development Plymouth's Derrys store

£50m hotel/student flat scheme for Plymouth's Derrys store

THE huge city centre block containing the closed-down Derrys department store could be turned into student flats and a budget hotel in a £50million development.

London-based Thames Bank Property Company has exchanged contracts for the 224,536sq ft block, subject to receiving planning permission.

Bosses have been in talks with Plymouth City Council and expect to submit plans next month which will see the block transformed into 500 student bedrooms and a 100-bed budget hotel.

There would also be ground-floor shopping and restaurant space created, but Thames Bank Property said the retail economy was not strong enough for the entire site to be stores.

Indeed, Derrys itself was one of the early casualties of the retail wipe-out of the past decade, closing in 2010 when Vergo Retail Ltd went into administration.

However, Thames Bank Property said five existing tenants, including the Argos and Ryman outlets, would be welcome to stay in the redeveloped building.

Thames Bank Property also plans to add an extra floor and do other works to upgrade the roof and the Courtenay Street area, adding new parts to the building.

Colin Morris, who runs Thames Bank Property, said he has been speaking to Plymouth City Council about the building for the past two years.

"We recently exchanged contracts to purchase the entire site, subject to planning," he said.

"We want to submit a planning application next month.

"We've been looking at the marketing of retail for the past five years, and it has not gone well," he said. "So we are looking at 500 student rooms and a 100-bed budget hotel, and the ground floor for retail/restaurant.

"We'll build the student beds to top specification.

"Construction will be internal, but we will tidy up the roof, and we are putting another floor on there.

"Courtenay Street is a bit messy, we'll tidy that up and put some new build in there."

Mr Morris said the deal to buy the building was confidential but involved "a lot of cash".

When Aberdeen Property Investors bought it in 2010 it was for more than £20million.

But Mr Morris did say the entire project, including purchase and redevelopment, would top £50million.

He said the aim is "to transform that part of the city", an area blighted by closed-down shops and stemming from the days of recession.

"I think there will be more life in the place with 600 people in there," he said.

Mr Morris said Thames Bank Property was involved in the development of several listed buildings in London.

He said the Derrys block was an attractive building and added: "I love the building and design."

Last year The Herald revealed that the Co-operative group was still paying close to £1million every year, in rates and Business Tax, as leaseholders of the vacant Derrys department store

Only Colin Campbell Court left as potential site for the "anchor" development West End desperately needs.

Not enough private money out there willing to invest in an anchor development at that end of the town, what I call the pasty quarter.
Only some form of partly publicly sponsored facility would ever seem attractive at Colin Campbell. If Brent were to admit defeat and change the ice rink or whatever to there, then the council might give the poor lamb a helping hand. I can't see what else would go there as an anchor mother ship.

Let's face it, City centres and town centres all over the country are finished in their present size and use. We all know roughly how many shops down that end of the town are being filtered out to folk ready to put up cheap steel housing. The area will probably end up as the tatty "downtown" dodgy areas America is full of, that outsiders tend to avoid.  Derrys is the last building that can actually hop onto the Royal Parade lifeboat and manage to keep itself above the mire.

Only one property development makes economic sense to private property developers at Colin Campbell, and that's under spec, no tenancy rights, "student accommodation". Shorely, anyone who has followed the development story of the UK over the last 80 years knows that "student accommodation" is tomorrow's social housing, tomorrow's "walkways in the sky" ruse, with big problems in areas like Frankfort Gate, and maybe even the forerunner of re-introduced work houses for the under class within 30 years. Many smell that is what WILL happen, but nobody talks about it. The latest social taboo. Everyone will wax lyrical in the future and ask how it was allowed to happen, and state hindsight is a wonderful thing.
The best scenario is pull down the whole of Colin Campbell, do a bit of Jeremy's QE, and build PROPER social housing with a proper aspect, and a consequent huge reduction in housing benefits that would otherwise go to over charging private landlords.
I walked through the newly developed Devonport/Mount Wise again today. It's not Nirivana, but it certainly is a huge improvement on what was there before, and fitting of modern community building. Quite a different atmosphere to the old nasty feel.

Mixed economies work, because not every bit of land has an inbuilt profit in it.  Sometimes the government has to take the lead and lay the bricks, pay the workers and house the people who need housing, while the Jimmys of this world stare blankly at their precious balance sheets that bear no relation to reality.

if its not pound shops or student flats the council arent interested.

It's not the Council's fault Angry. There's just very little private money out there. Capital is hunkering down afraid to move, afraid to spook any unforseen charge. PCC are very lucky to get the Bretonside deal, but then that area does have a possible uplift value due to it's position.
The "market place" has not worked in the property sector for many years now. Only huge subsidy in the shape of interest rates, tax breaks, interest only loans, shared ownerships etc is keeping it afloat. A form of Osborne QE in all but name, and it's all going in the wrong pockets.
While the present governement waxes lyrical about the need to reduce debt, it's allowing private credit to run riot in all sort of sectors, but particularly the housing sector. And all to keep business ticking over for their mates. They need customers.
Maybe Brenty should introduce a "shared ownership" POTD ticket at Argyle.

The problem with plymouth is people cannot see beyond there own greed. The lower end of town (pasty quater/independent quarter) did have a very very large developer (drake circus owners) interested but because the current shop owners could no agree on a sell on contract including new tenancy agreements the developer just walked away and spent they billions elsewhere. sad but true.

True. But we're all chasing the same money Lawny, and everyone has a right to stick out for what they see as their own interests. Many small businesses have other reasonings than just a bottom line balance sheet. Viability for small traders takes many forms. The big companies always number crunch for their shareholders. I don't think it all functions that well any more. We need new models.

The present occupiers didn't have to sign over their assets if they didn't believe it to be in their favour. Not really a case of greed, more a case of a bad deal offered.
We'll have Rapson on here in a minute if we're not careful

I agree there are other reasons than bottom line on balance sheets but the greed comment was aimed at the shop owners who had a smaller sq2 meter than the bloke next door but we have been here longer than youu so we should get more money.

If the present occuppiers looked beyond next week the deal on on offer would meant the decline of that end of town stopped (less profit) and footfall/profit would then be increased if the offer was agreed appon they would earn more money.

Ps the market was never included in any deals but the idea was improve around the market to improve the market and visa versa.

Sir John Hawkins wrote:

It's not the Council's fault Angry. There's just very little private money out there. Capital is hunkering down afraid to move, afraid to spook any unforseen charge. PCC are very lucky to get the Bretonside deal, but then that area does have a possible uplift value due to it's position.
The "market place" has not worked in the property sector for many years now. Only huge subsidy in the shape of interest rates, tax breaks, interest only loans, shared ownerships etc is keeping it afloat. A form of Osborne QE in all but name, and it's all going in the wrong pockets.
While the present governement waxes lyrical about the need to reduce debt, it's allowing private credit to run riot in all sort of sectors, but particularly the housing sector. And all to keep business ticking over for their mates. They need customers.
Maybe Brenty should introduce a "shared ownership" POTD ticket at Argyle.

And what was it the council said last week "we want to attract more posh.rich people to plymouuth" hardly going to do that by refusing to go out there and attract them by selling every scrap of land in the city centre to student digs or pound shops. worth pointing this is a labour council who are allowing the city centre go to the pits while they are busy wasting £20000 on arse prints on the hoe.

Its no wonder exeter city centre is in another universe compared to plymouth even with the the problems internet shopping has created in retail.

I don't see it as a party political thing. Pengelley did no different than Evans. It's a systemic problem. All under the thumb of the modern day barons who dictate the honourable offices of the Westminster palace. Brent isn't in that league, so hopefully he'll be frozen out by our esteemed representatives. Maybe Putin will make a late bid for a slice of Plymouth.