Orchard Square: 'Fast buck' fears as shopping centre goes up for sale after near £1m grant

A thriving Sheffield shopping centre is up for sale after receiving £990,000 of public money - sparking a row over whether the owner is making a “fast buck”.

Orchard Square is on the market for £16,200,000 and boasts it is 95 per cent let - with a further unit under offer - and making £1,736,045-a-year in rent.

The site, which is home to Waterstones, Virgin Money, Metro Bank, TK Maxx and food hall Sheffield Plate, has been revamped with new paving and furniture. Canopies above shops and a huge awning to weatherproof outdoor events, are planned while some empty shops are being converted into flats.

It comes after councillors last year approved two grants worth £990,000. The centre is owned by London and Associated Properties.

Lib Dem peer and former Sheffield City Council leader Paul Scriven expressed fears taxpayers’ cash was being used to inflate the value of assets in order to sell them.

He tweeted: ‘For taxpayers’ money a basic contractual agreement should have been put in a clawback clause to ensure private companies can't inflate an asset they own for a quick sale and a quick buck. I'm not making any comment about the use on the square but how our taxes have been protected’.

Alex Shannon added: ‘Feels like Sheffield City Council has been played as the grant was only approved in November 2022. London & Associated Properties has a portfolio worth £60m and there are more deserving areas in the city centre, not these fat cats. We’ve been had’.

But Tom Wolfenden boss of Sheffield Technology Parks disagreed.

‘The owners aren't taking the improvements with them when they sell. The point is its a better place for the city, regardless of ownership… this specific fund was to improve the environment and increase footfall. Orchard Square is more popular than ever because of it. Naturally that means an increase in value’.

And property developer Tony Carroll said he ‘disagreed fundamentally’ with Lord Scriven.

‘A grant is a grant for the specified purpose, which it helped to fulfil alongside investment by the owner…Remember, the city council is dabbling in property development these days and many grants are utilised’.

Sheffield City Council and London and Associated Properties chief executive John Heller have both been approached for comment, but neither have responded. 

The grants were from the Future High Streets Fund, a £15.8m government pot to improve High Street and Fargate.

Last year the city council defended 'eye-watering' grants to private companies arguing they would ‘address the changes on high streets’ and encourage greater footfall.

In November the funding to develop Orchard Square was criticised by Green councillors as its owner is a Conservative Party donor.