News: Rotherham bank building sold, council tight-lipped
An empty former bank on Corporation Street has sold at auction at the same time as the local council approves the purchase of an unnamed property in Rotherham town centre.
The former NatWest bank building was previously part of a regeneration scheme but agreements could not be reached between the owner and the council.
Described as being "in a state of disrepair requiring development and conversion," BTG Eddisons listed 38 Corporation Street with a guide price of £180,000 - £200,000.
It sold this week for £300,500.
Rothbiz reported in 2021 on investment plans for vacant buildings on Corporation Street as part of a bid to extend the town's new Leisure and Cultural Quarter from nearby Forge Island.
As development continued on the cinema and hotel scheme, acquisitions by Rotherham Council have included the Riverside Precinct, the former Mecca Bingo building, the building vacated by Wilko, and the burnt-out buildings on the opposite side of Corporation Street. All but the grade II listed Mecca building have been demolished.
In the case of the former NatWest Bank, private sector owners did not bring forward a suitable scheme and previously turned down a bid from the council to buy the building.
To support the scheme, Rotherham Council was prepared to sell the former Lloyds bank next door for just £1 in 2022.
By 2024, concerns were being raised regarding the progress made by the owners of the NatWest Bank who were then given a short timescale to provide a plan. With no suitable plans for the bank, the owners then informed the council that they would consider selling the property. However, an agreement could not be reached.
Auction documents show that the property was being sold by Chicken Villas Limited, a company that is connected to the QFM Group, the Sheffield-based operator of a number of popular food franchises.
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Earlier this week, Rotherham Council's cabinet approved the use of its Capital Contingency Fund to "acquire a property in Rotherham Town Centre for the purposes of future regeneration."
The documents do not name the property but describe it as being "the subject of previous masterplan and feasibility work, demonstrating the strategic value of the property for regeneration purposes" and add that the "property’s location means that its future ownership, condition and use could have a material bearing on the quality and delivery of surrounding regeneration proposals."
A cabinet paper adds: "Acquisition would enable the Council to secure control of the property while future development options are assessed. Those options may include refurbishment, redevelopment, reuse in conjunction with adjoining Council interests, or incorporation within a wider regeneration proposal.
"The property is vacant and understood to require significant investment. Acquisition would therefore expose the Council to immediate holding, security, insurance, compliance and maintenance costs pending agreement and funding of any future use.
"The property is vacant and in poor condition, and full access has not yet been provided. There is therefore a risk of significant structural, fabric, building-services, asbestos, security or other abnormal costs. The maximum bid will reflect the limitations of the available information. If acquired, an initial allowance will be made for the security, insurance, health and safety and property-management measures considered essential pending a full condition assessment."
Looking ahead, the council, which is working on multimillion pound public realm work on Corporation Street and a new riverside gardens, said of the new target: "No funded redevelopment project is presently being approved. There is a risk that the cost of bringing the property back into beneficial use exceeds available resources. Acquisition must therefore be justified principally by the property’s strategic importance, supported by an assessment of holding costs and future options."
Options to leave any redevelopment up to the private sector owners, or indeed seek to engage and work with the building's owners were rejected due to the lack of influence and direct control of future regeneration.
Draft plans submitted with the auction documents show around 2,000 sq ft of commercial space in a new building overlooking the river and new gardens and a 1,700 sq ft commercial unit in the old bank. Plans for the upper floors show apartments across both buildings.
Neither the property that Rotherham Council has been authorised to acquire, or the successful bidder of the auction lot has been disclosed.
BTG auctions
Images: BTG
The former NatWest bank building was previously part of a regeneration scheme but agreements could not be reached between the owner and the council.
Described as being "in a state of disrepair requiring development and conversion," BTG Eddisons listed 38 Corporation Street with a guide price of £180,000 - £200,000.
It sold this week for £300,500.
Rothbiz reported in 2021 on investment plans for vacant buildings on Corporation Street as part of a bid to extend the town's new Leisure and Cultural Quarter from nearby Forge Island.
As development continued on the cinema and hotel scheme, acquisitions by Rotherham Council have included the Riverside Precinct, the former Mecca Bingo building, the building vacated by Wilko, and the burnt-out buildings on the opposite side of Corporation Street. All but the grade II listed Mecca building have been demolished.
In the case of the former NatWest Bank, private sector owners did not bring forward a suitable scheme and previously turned down a bid from the council to buy the building.
To support the scheme, Rotherham Council was prepared to sell the former Lloyds bank next door for just £1 in 2022.
By 2024, concerns were being raised regarding the progress made by the owners of the NatWest Bank who were then given a short timescale to provide a plan. With no suitable plans for the bank, the owners then informed the council that they would consider selling the property. However, an agreement could not be reached.
Auction documents show that the property was being sold by Chicken Villas Limited, a company that is connected to the QFM Group, the Sheffield-based operator of a number of popular food franchises.
Advertisement
Earlier this week, Rotherham Council's cabinet approved the use of its Capital Contingency Fund to "acquire a property in Rotherham Town Centre for the purposes of future regeneration."
The documents do not name the property but describe it as being "the subject of previous masterplan and feasibility work, demonstrating the strategic value of the property for regeneration purposes" and add that the "property’s location means that its future ownership, condition and use could have a material bearing on the quality and delivery of surrounding regeneration proposals."
A cabinet paper adds: "Acquisition would enable the Council to secure control of the property while future development options are assessed. Those options may include refurbishment, redevelopment, reuse in conjunction with adjoining Council interests, or incorporation within a wider regeneration proposal.
"The property is vacant and understood to require significant investment. Acquisition would therefore expose the Council to immediate holding, security, insurance, compliance and maintenance costs pending agreement and funding of any future use.
"The property is vacant and in poor condition, and full access has not yet been provided. There is therefore a risk of significant structural, fabric, building-services, asbestos, security or other abnormal costs. The maximum bid will reflect the limitations of the available information. If acquired, an initial allowance will be made for the security, insurance, health and safety and property-management measures considered essential pending a full condition assessment."
Looking ahead, the council, which is working on multimillion pound public realm work on Corporation Street and a new riverside gardens, said of the new target: "No funded redevelopment project is presently being approved. There is a risk that the cost of bringing the property back into beneficial use exceeds available resources. Acquisition must therefore be justified principally by the property’s strategic importance, supported by an assessment of holding costs and future options."
Options to leave any redevelopment up to the private sector owners, or indeed seek to engage and work with the building's owners were rejected due to the lack of influence and direct control of future regeneration.
Draft plans submitted with the auction documents show around 2,000 sq ft of commercial space in a new building overlooking the river and new gardens and a 1,700 sq ft commercial unit in the old bank. Plans for the upper floors show apartments across both buildings.
Neither the property that Rotherham Council has been authorised to acquire, or the successful bidder of the auction lot has been disclosed.
BTG auctions
Images: BTG
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Wetherspoons!
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