Newcastle City Council will borrow almost £8 million to help pay for a major redevelopment of Eldon Square. It has emerged that the local authority, which holds a 40 per cent stake in the shopping centre, is set to take out a multi-million-pound loan as it takes on a share of the costs for a huge overhaul of the site. £65 million plans were approved earlier this year that will see both the disused former Eldon Leisure Centre and the top floor of the vacant Debenhams turned into new food, drink, culture, leisure and entertainment spaces.
Eldon Square’s redevelopment will also see Next move from its existing spot into two floors of the flagship Debenhams unit and beauty brand Sephora arrive in the city, with that due to open later this year. A Newcastle City Council report this week also reveals that the existing River Island is set to upsize into the closed-down Topshop store. Members of the local authority’s finance and budget scrutiny committee were told that the council, which has warned that it must find £60 million worth of budget savings by 2027, would borrow £7.
8 million to help pay for the changes at Eldon Square. Paul Stewart, the civic centre’s head of property, said that the decision was justified as the new shop lettings are expected to generate an annual £1 million return. Eldon Square has endured a turbulent few years that has seen its former owner Intu collapse and the centre’s value plummet – with shops closing down as Covid-19 took a heavy toll .
