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Mystery buyer pulls out of arcade deal
A mystery buyer has pulled out of a deal to buy Preston's historic Miller Arcade, it can be revealed.
But there are up to two other bidders interested in snapping up the iconic shopping centre which is on the market for around 3m.
It is understood the bidder, a local businessman, had reduced his offer at the asking price to 2.65m amid concerns about the conflict between plans to rejuvenate the neglected arcade and other city centre regeneration projects.
The administrator dealing with the assets of the Miller Arcade's owner, Scottish property group Kilmartin, said it was "business as usual" but traders are fearful that plans to pump cash into refurbishing the Grade II-listed building may now be on hold.
One trader, who asked not to be named, said: "We have been promised so much in the two years since Kilmartin took over and we are still in exactly the same place we were back then.
"People had hoped that a new buyer would bring plans to give the place a new lease of life and now that is looking uncertain."
Eliot Ward, chief executive of Preston Vision, said he understood there were a number of "expressions of interest" in the building.
It had been hoped the previous bidder would secure a deal to take it over by next month, but that offer is now off the table.
Mr Ward said: "It is a huge positive that there is still interest from private investors who see the potential of the Miller Arcade.
"But, there is no question that whoever is looking at it needs to have deep pockets not only to acquire the building but also to carry out the necessary refurbishment.
"That is undoubtedly an issue in the current property market, however, the potential of such a development to act as a catalyst for the entire city is undoubtedly a huge plus."
He added that a 2m Heritage Lottery Fund (HLF) bid by Preston Council to upgrade historic buildings around Lancaster Road, including the Miller Arcade, could make it more attractive to interested buyers.
Council conservation officer Nigel Roberts said that 30m of bids had been submitted for the 10m cash pot across the country and the council expected to hear back on its bid by the end of next month.
A spokesman for administrators PricewaterhouseCoopers (PWC) said it could not confirm any interest in the Miller Arcade and said it would continue to operate it until a decision was made on its future.
PWC joint administrator Graham Frost cited the "well-documented slowdown in the property market" for the demise of Kilmartin which called in the firm in January.
It appointed property consultants Knight Frank to market the assets of the collapsed group.
The Edinburgh-based group bought the Miller Arcade from Maple Grove Developments, the property arm of the Bamber Bridge-based Eric Wright Group, in a 8.6m in February 2008.
It currently houses six businesses including clothes stores Monkhouse School Outfitters, FCUK and Rohan, a restaurant called Olivers, the Games Workshop and card shop Utility.
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Weather for Preston
Wednesday 22 February 2012
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