Council approved £1.8m loan to enable major retailer to take over three units at Aylesbury retail park

Bucks Council approved a £1.8 million loan to enable a major retailer to take over three units at the Vale Retail Park in Aylesbury.

The £1.8 million loan was for building works to help deliver a high quality covenant for the major retailer.

The report approving the council loan on March 30 outlined the following reasons for why this spending is necessary.

It says: "With the onset of the recession in retail work has been ongoing on potential lettings to replace the retailers lost on the retail park as well as considering other options for

the site.

"A suitable long term tenant has been identified but the terms of the deal requires enabling works to achieve a full market rent with the level of return set out in the report considered in the confidential appendices.

"The proposed works and letting deliver a high-quality covenant, reduces existing budget pressure by creating a secure income stream and will raise the profile of the Retail Park, improving the prospects of further lettings of the remaining units to high-quality covenants at a full market rent."

Bucks Council has not reveal who the retailer is due to a confidentiality agreement.

It is said that the mystery retailer will create new jobs in Aylesbury and 'improvements to the frontage and car park' were outlined in an April report, when news of the retailer first became public.

The report also outlined the possibility of building more housing on the retail park, stating: "More housing would improve the housing mix with more affordable and would bring residents into the town centre to support local businesses. Consideration will be given to include the site in the new Local Buckinghamshire Plan.

"The site could also be considered for other uses for example leisure or offices to potentially release other sites for residential development in the town centre.

"Such a development could create approximately 148 market flat units and 49 affordable flat units. However the purchase price paid for the site in 2015 means converting the site at this time is not viable without substantial gap funding.

"However, in the future as the residual value of the site with an appropriate. Planning consent for residential is likely to increase, the site is likely to be viable for residential development.

"The longer-term aspiration for the site is to bring forward for residential development as part of the evolution of the Aylesbury Town Centre to support the provision of affordable housing and the support of businesses within the town centre."