Economy hits Bognor's regeneration

Developer St Modwen is unwilling to start work on the Regis Centre and Hothamton sites because of the fragile economy.

Its London regional director, Tim Seddon, said no retailers were willing to commit to any development which meant the risk was too great for his company to take on.

"One of the biggest issues for us, and for any of our competitors, is the level of pre-lettings in the project," he told the Bognor regeneration sub-committee of Arun District Council.

"In a very thin market, the projects that are happening are very much foodstore led. Until Sainsbury's and Morrisons sort out their future it is very difficult for us to talk to anybody about their town centre needs.

"We know we are currently unable to secure the requisite commercial occupiers on a pre-let basis which is essential to kick-start the delivery of the project today.

"There is insufficient evidence in terms of the level of occupier interest to suggest the proposal to comprehensively develop the Regis Centre site and Hothamton can be pushed forward aggressively at this juncture.

"There is too much uncertainty around occupier confidence and affordability to suggest the project is capable of being delivered today."

Mr Seddon was delivering the latest six-monthly update to councillors as a condition of the three-year delay St Modwen was allowed in building the regeneration projects after it was taken on by the district council.

The company has until early 2012 to start work on the developments.

The Regis Centre site is centred around leisure with flats above.

For Hothamton, the emphasis is on a civic hub with council offices, a possible health centre and a 30,000sq ft shop plus flats.

Mr Seddon said some good news was evident '“ including Travelodge seeking to secure an 80-bedroom hotel within the town centre; Waitrose looking to open a convenience-style store in the Hothamton scheme; and theatre operator Open Wide interested in taking entertainment space in the leisure scheme alongside a cinema operator.