The extent of arrears racked up by the shopping precinct’s tenants was outlined in papers set to go before Lewisham Council’s cabinet on Wednesday (October 23).
The report blames a ‘highly challenging high street and retail environment’ for the difficulties firms are having in covering rent and service charges. Since 2010, the Catford Regeneration Partnership Limited (CRPL), which is wholly owned by Lewisham Council, has bought up leasehold interests in and around the centre in preparation for the town centre’s future regeneration.
The CRPL’s business plan for 2024-2027 shows that the Labour-run council had loaned the firm £16.9 million as of March this year. The loan is expected to grow to £17.6 million by March 2025 if no loan interest repayments are made this year. The CRPL has been unable to meet loan repayment agreements to the council in previous years.
Its portfolio includes stores in the shopping centre, retail units outside the centre on Rushey Green and Catford Broadway, as well as a number of flats. The annual rental income of the properties for the CRPL is approximately £1 million.
Millford Towers is built about Catford Centre (Image: Robert Firth)
The deterioration of the shopping centre building has resulted in the CRPL having to splurge money on repairs in recent years, including replacing the centre’s glass canopy and carrying out repairs to some roof areas, according to the business plan.
It continues: “In recent months, repairs and maintenance issues have arisen, including falling plasterwork and incidents of water ingress due to failing service deck above the centre reaching the end of its operational life.”
MORE CATFORD NEWS
Over the next three years, around £825,000 worth of urgent repairs are due to be made to the centre. Catford Centre and the Milford Towers estate, which is located above the shopping complex, are due to be demolished and redeveloped as part of the council’s plans to regenerate Catford town centre and build 2,700 new homes over the next 20 years.
The proposals have been in the pipeline for over a decade but concrete plans for the redevelopment of the shopping precinct and estate are still yet to be finalised. The regeneration plans would also see the South Circular road rerouted to create a new pedestrianised square in the town centre.