'We've lost £1.7 million on Horwich site before work has even started', claims developer

The Swallowfield Hotel site in Chorley New Road, Horwich

The Swallowfield Hotel site in Chorley New Road, Horwich

First published in News The Bolton News: Photograph of the Author by , politics reporter

DEVELOPERS say they have already lost £1.7 million on a mothballed site in Horwich - before building work has even started.

Redrow Homes is battling with Bolton Council to allow the firm to keep four of the proposed 42 flats set to be built at the former Swallowfield Hotel in Chorley New Road.

In a previous agreement in 2007, Redrow had agreed these four homes would be transferred to a social housing provider.

The group received planning permission in 2008 to build two three-storey apartment blocks, but had to abandon the scheme because of the economic crash.

Now, after months of wrangling with the council, Redrow say they will make a loss on the development, even if they do not hand over the four affordable units.

The firm has already written off £1.7 million. After meeting with planning officers, the company now says it wants wants to “get off the site” as soon as possible — and has offered a final sum of £50,000 towards affordable housing elsewhere.

In January, councillors rejected changing the condition, arguing that the economic recovery made it possible for Redrow to provide the affordable homes.

But in her report to the planning committee, which meets on Thursday, officer Helen Williams said house prices for apartments in Horwich are down around 20 per cent from 2007 and recommended councillors accept the new deal.

She added: “As Redrow are keen to start development on the site again and to ‘get off the site’ as soon as possible due to the costs incurred and being incurred, they are now offering an increased sum of £50,000 towards off-site affordable housing provision, rather than the £30,000 they offered in March.

“They maintain this is their final and highest possible offer, as any further contribution would eat further into their losses.”

If accepted, another grant of £10,000 will also be provided by Redrow for highways improvements.

Comments (7)

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11:09am Wed 4 Jun 14

oftbewildered2 says...

if Redrow are losing out on this deal, that is their problem. They should have stuck to what was agreed. £50,000 towards social housing elsewhere is peanuts.
if Redrow are losing out on this deal, that is their problem. They should have stuck to what was agreed. £50,000 towards social housing elsewhere is peanuts. oftbewildered2
  • Score: 24

11:21am Wed 4 Jun 14

filthy6 says...

oftbewildered2 wrote:
if Redrow are losing out on this deal, that is their problem. They should have stuck to what was agreed. £50,000 towards social housing elsewhere is peanuts.
Totally agree, they took the risk & wouldn't have come back with any more money if they had increased their profit margin. Plus I'm sure that the loss they portraying is purly on paper & not an actual loss
[quote][p][bold]oftbewildered2[/bold] wrote: if Redrow are losing out on this deal, that is their problem. They should have stuck to what was agreed. £50,000 towards social housing elsewhere is peanuts.[/p][/quote]Totally agree, they took the risk & wouldn't have come back with any more money if they had increased their profit margin. Plus I'm sure that the loss they portraying is purly on paper & not an actual loss filthy6
  • Score: 15

12:12pm Wed 4 Jun 14

MrUpton says...

Big Business losing money because of bad decision making..... get over it , it's a non story,

How much profit has the company made in the Oh look

2013 - profit soar 63% to £70m .... yeah I'd be crying too.

If it's the planning system that's the problem spend some of that £70 million in party donations to UKIP who will perhaps help change planning laws so we can keep up with housing demand..............
..
Big Business losing money because of bad decision making..... get over it , it's a non story, How much profit has the company made in the Oh look 2013 - profit soar 63% to £70m .... yeah I'd be crying too. If it's the planning system that's the problem spend some of that £70 million in party donations to UKIP who will perhaps help change planning laws so we can keep up with housing demand.............. .. MrUpton
  • Score: 8

12:46pm Wed 4 Jun 14

filthy6 says...

MrUpton wrote:
Big Business losing money because of bad decision making..... get over it , it's a non story, How much profit has the company made in the Oh look 2013 - profit soar 63% to £70m .... yeah I'd be crying too. If it's the planning system that's the problem spend some of that £70 million in party donations to UKIP who will perhaps help change planning laws so we can keep up with housing demand.............. ..
Nowt to do with planning system. They applied & agreed to planning requirements then decided they wanted to alter the build.
Thought ukip were already bankrolled by big doners...
[quote][p][bold]MrUpton[/bold] wrote: Big Business losing money because of bad decision making..... get over it , it's a non story, How much profit has the company made in the Oh look 2013 - profit soar 63% to £70m .... yeah I'd be crying too. If it's the planning system that's the problem spend some of that £70 million in party donations to UKIP who will perhaps help change planning laws so we can keep up with housing demand.............. ..[/p][/quote]Nowt to do with planning system. They applied & agreed to planning requirements then decided they wanted to alter the build. Thought ukip were already bankrolled by big doners... filthy6
  • Score: 4

1:04pm Wed 4 Jun 14

MrUpton says...

filthy6 wrote:
MrUpton wrote:
Big Business losing money because of bad decision making..... get over it , it's a non story, How much profit has the company made in the Oh look 2013 - profit soar 63% to £70m .... yeah I'd be crying too. If it's the planning system that's the problem spend some of that £70 million in party donations to UKIP who will perhaps help change planning laws so we can keep up with housing demand.............. ..
Nowt to do with planning system. They applied & agreed to planning requirements then decided they wanted to alter the build.
Thought ukip were already bankrolled by big doners...
http://www.bbc.co.uk
/news/uk-wales-north
-east-wales-24145863


Redrow have been moaning about planning laws.


UKIP are always in need of donors, if you've seen the way Bolton Planners work in Bolton then its like clowns taking over the circus.

Bus stops next to right turn only lanes, 1m of double yellow line up Halliwell road, (how many cars are 1m in length? ) , speed humps on a cobbled street 5m from the end of the street.

Bolton Planners are not the best and I certainly don't blame redrow if you read the article properly but they could have made the alternate decision that was available to them at the time. Sounds to me like the council want to control it more though but the way things have panned out.

"Now, after months of wrangling with the council, Redrow say they will make a loss on the development, even if they do not hand over the four affordable units."
[quote][p][bold]filthy6[/bold] wrote: [quote][p][bold]MrUpton[/bold] wrote: Big Business losing money because of bad decision making..... get over it , it's a non story, How much profit has the company made in the Oh look 2013 - profit soar 63% to £70m .... yeah I'd be crying too. If it's the planning system that's the problem spend some of that £70 million in party donations to UKIP who will perhaps help change planning laws so we can keep up with housing demand.............. ..[/p][/quote]Nowt to do with planning system. They applied & agreed to planning requirements then decided they wanted to alter the build. Thought ukip were already bankrolled by big doners...[/p][/quote]http://www.bbc.co.uk /news/uk-wales-north -east-wales-24145863 Redrow have been moaning about planning laws. UKIP are always in need of donors, if you've seen the way Bolton Planners work in Bolton then its like clowns taking over the circus. Bus stops next to right turn only lanes, 1m of double yellow line up Halliwell road, (how many cars are 1m in length? ) , speed humps on a cobbled street 5m from the end of the street. Bolton Planners are not the best and I certainly don't blame redrow if you read the article properly but they could have made the alternate decision that was available to them at the time. Sounds to me like the council want to control it more though but the way things have panned out. "Now, after months of wrangling with the council, Redrow say they will make a loss on the development, even if they do not hand over the four affordable units." MrUpton
  • Score: -6

1:05pm Wed 4 Jun 14

cliff4treasurer says...

Ask the accountants to confirm the 1.7 million first..
Ask the accountants to confirm the 1.7 million first.. cliff4treasurer
  • Score: 9

3:58pm Wed 4 Jun 14

007mcfod says...

the requirement to give stock to social housing is a joke anyway, why should they have to just because the government screwed up their own stocks of homes and housebuilding projects. and if you went and bought a nice new apartment would you want the risk of some absolute nightmare being placed next door to you? people say it cant happen, tell them to ask the resident sup in buckshaw village, one of the streets of nice new houses regularly has housing association residents sat out on the front lawn on the sofa that lives out there, drinking and playing loud music (apologies for the steretyping of association tenants, not intended or what im saying, but just making a point that this is not well policed to ensure suitability of tenants in certain areas)
the requirement to give stock to social housing is a joke anyway, why should they have to just because the government screwed up their own stocks of homes and housebuilding projects. and if you went and bought a nice new apartment would you want the risk of some absolute nightmare being placed next door to you? people say it cant happen, tell them to ask the resident sup in buckshaw village, one of the streets of nice new houses regularly has housing association residents sat out on the front lawn on the sofa that lives out there, drinking and playing loud music (apologies for the steretyping of association tenants, not intended or what im saying, but just making a point that this is not well policed to ensure suitability of tenants in certain areas) 007mcfod
  • Score: 4

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