HMRC pulls out of £45m Portsmouth office development leaving questions over the future of the prime city centre site
HMRC pulls out of £45m Portsmouth office development leaving questions over the future of the prime city centre site.
HMRC has pulled out of their £45 million office block development on the former Matalan site in the town centre. The government’s tax department has abandoned plans to create a regional office for HM Revenue and Customs (HMRC) near Portsmouth and Southsea train stations.
The ‘No 1 The Goodsyard’ was scheduled to be erected on the former Matalan parking park and would have employed 1,250 full-time HMRC personnel, 350 more than are currently employed in the Lynx House in North End.
The £45 million proposal would have had a four-story structure with 5,400 sqm of internal space, 38 parking spots, and 59 bicycle spaces.
HMRC intended to acquire the building outright and occupy the majority of the office space with the Marine Management Organisation.
To date, Welbeck CP and CoPlan Estates have made headway on the proposal, with construction “weeks away” from beginning.
However, government attorneys provided the corporations with a formal notice to cancel the development agreement, around the same time that the government determined the date for the Autumn Budget.
This unexpected decision puts the project at risk of being abandoned entirely. However, developers are currently exploring solutions in collaboration with Portsmouth City Council.
Edward Flach, director of Welbeck CP, stated, “Welbeck CP and CoPlan Estates are extremely dissatisfied and perplexed by the Government’s decision to withdraw from its promise to a new HMRC office in Portsmouth city centre.
“The decision to terminate the development agreement having so publicly and confidently expressed commitment to the scheme recently is a hard one to fathom.
“It looks like short-term cost cutting rather than strategic thinking about jobs, investment, operating efficiencies and what’s in the best interests of HMRC staff and everyone who uses HMRC services.
“Disappointed and let down as we are, we will move on and work hard to find a new way to bring much-needed regeneration to the site.
We will find a way and we look forward to making it happen.”A representative for HMRC claimed: “After extensive negotiations with the developer it became clear they were unable to deliver the development in line with the terms agreed last year and provide value for money for the taxpayer.”
We’ve consequently dissolved the agreement, which means that our employees will remain at Lynx House for the foreseeable future while we assess our next moves.”
Read more on Straightwinfortoday.com
Comments are closed, but trackbacks and pingbacks are open.