HBG Properties has pulled out of its joint bid with Grosvenor Developments for the 225ha (558-acre) Omega site in Warrington, writes Lisa Pilkington and David Thame.
Grosvenor/HBG were among seven short-listed development consortia bidding for the site, which is owned by English Partnerships (EP), and market sources are not discounting further withdrawals. The site – one of the most highly valued in the North of England – is set to benefit from the opening of junction 8 of the M62 motorway in 2002.
In a statement, HBG director Clive Perrin said: “HBG Properties has decided to disengage itself from the proposed 50/50 joint venture with Grosvenor Developments before the final submission stage. However, we will continue to support Grosvenor with the bid at a practical level. We now believe that although Omega represents a major opportunity for the development industry, it would have a substantial impact upon our already successful core business in the North West in terms of time and resources.”
The Omega site has been the subject of controversy since EP decided to launch an international development competition. Many in the region believe the decision to press ahead conflicts with the North West Development Agency’s strategic plans to invest in Liverpool and east Manchester. And development at Omega is likely to attract opposition from nearby Merseyside councils which fear losing jobs and investment to the site.
Said one observer: “The strategic planning on this site could turn into a three or four-year nightmare.”
EGi News 22/02/01
