£100m development of apartments, retail, restaurants and office space cancelled.
Developers pull out of proposed £100m development of Leeds city centre apartments.
George Wimpey City (GWC)decision to cancel the proposed Green Bank development situated on Globe Road adjacent to the river Aire has led to fears the housing market is in for a rough ride as a lack of confidence hit high-rise/apartments market.
800 apartments were planned as part of a schemme to develop a £1bn Leeds West End.
Wimpey’s said it had taken a decision to postpone construction adding "This is a result of the current uncertain market conditions for high-rise apartments in central Leeds.
The company will be refunding all deposits along with any interest accrued. The company made their decision before construction contracts were signed.
The company will conduct a review of plans over the next 12 months.
The Green Bank was proposed in 2005, and included retail, restaurants and offices.
It was included in a joint marketing strategy with other property developers in a number of ambitious projects – including KW Linfoot's proposed giant Lumiere towers for Leeds city centre.
Wimpey's decision seems to reinforce a recent market assessment, commissioned by Leeds City Council, indicateing there could be a surfeit over-supply of city centre apartments, the study seems to have shown "demand for city living had not proved to be as robust as initially anticipated".
There had been warnings that investors were turning away from apartment schemes and a question mark existed over demand for units in Leeds.
Rental yield with an expectation of modest capital growth does not help such proposals adding to the decline in investor interest |
