Council step in to aid development
maandag, 2 november 2009
Bradford Council and Yorkshire Forward have stepped in with a cash injection to ensure that a prime mixed-use development in the city centre is completed.
The council confirmed an agreement has been reached to provide a £6 million commercial loan to Irish developers McAleer & Rushe to ensure continued work on the flagship project.
McAleer & Rushe had run short of funds for the £45 million development but fears over the project's future have now been allayed.
Mike Bell, Bradford Council's assistant director for asset management, said: "Bradford Council and Yorkshire Forward have agreed a commercial loan of just over £6 million with McAleer & Rushe.
"We made this decision because of the advanced stage of construction and the agreed pre-lets to major companies. The secured loan will be repaid with interest over the next 11 months."
Provident Financial had already agreed to take a pre-let on 130,000sq ft of office space while Jury's Inn had confirmed it would run a 200 bedroom hotel.
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