A feasibility study is under way to see what can be done to turn around the fortunes of an under-used shopping centre.

Former tenants of The Buttermarket in Newark town centre say they moved out because of high rents and fluctuating service charges.

There are 12 empty units downstairs and four that are occupied.

Only one of 13 first-floor units is occupied, and that is the centre management office.

Rental fees advertised range from £250 to £2,630 per month, depending on the size of the unit.

The fact the centre is almost deserted has prompted questions over the leaseholder’s commitment and its intentions.

The leaseholders, a joint venture company, say they are actively marketing the units.

Newark and Sherwood District Council told the Advertiser it was undertaking a number of feasibility studies for possible regeneration opportunities, including a collaboration with Newark Town Council on The Buttermarket.

The D2N2 Local Enterprise Partnership ­— a private sector-led partnership that promotes economic and jobs growth across Derby, Derbyshire, Nottingham and Nottinghamshire ­— has provisionally accepted a bid by the district council for funding that could be spent on recommendations that come out of The Buttermarket feasibility study.

Funding worth £7.6m has been provisionally agreed through D2N2 for seven schemes in Nottinghamshire.

Subject to approval of a business case, £650,000 of that would be available for The Buttermarket, which would be matched locally.

The projects are part of the county council’s £20m Unlocking Growth In N2 Town Centres programme to improve and promote growth in town centres.

'Projects can stimulate growth in town centres'

A district council spokesman said: “This presents some exciting opportunities and we welcome the news that this project [The Buttermarket] is being considered for potential further funding, should the feasibility study demonstrate that there are viable improvements that can be made to this iconic space.

“Such regeneration projects can stimulate growth in town centres and surrounding areas, create jobs and enhance the culture and feel of the area.

“Both the district and town councils are committed to supporting and promoting the town centre economy whenever possible.

“A feasibility study is already under way and is looking at various options for the possible development of The Buttermarket, which is a significant heritage asset.

“It is too early to say what those options are and potential funding is dependent on whether one of those options is taken forward to the next stage.

“One aspect to the feasibility study will be to look at the potential impact on the night-time economy in the town centre.”

Town council leader Mr David Lloyd said: “It is hoped that the study will provide us with some feasible options to consider and which will make better use of The Buttermarket.”

In response to the number of empty shops and low footfall through The Buttermarket, Newark MP Mr Robert Jenrick said: “I call on the landlord to raise its game.

“We really should not see one of the town’s most beautiful buildings so empty.

“The rents appear to be to prohibitively high and little effort is made in sourcing new tenants.

“Across the country there are too many absentee landlords who do not seem to have any interest in the economy of the towns in which they have property.”

The Buttermarket last year underwent a £600,000 external restoration programme with the assistance of Historic England, of which Newark Town Council paid £288,000 and the leaseholder the rest.

Repairs were carried out to masonry, roofs and windows overlooking the Market Place, and there was general maintenance to protect the building.

Built in 1774, The Buttermarket was a covered market hall from 1884 to 1988, when it was converted into an indoor shopping centre over two floors that opened in May 1990.

The part of The Buttermarket from the Market Place to the columns inside is owned by the town council and the covered market area behind is owned by the district council.

They are on a long lease with Lunar Retail Sarl, a joint venture between London-based M&M Asset Management and Apollo Global Management.

Mr Iain Minto, of M&M Asset Management, said whether the future of The Buttermarket lay with them was a private matter between them and their investors.

“We have just finished spending large sums of money bringing the building back into a decent state of repair,” he said.

“Now we are actively marketing units for occupiers.

“Nationally, it is a challenging time for retail. We are doing all we can to lease it all.

“It is a Grade I listed building and a number of the units are compromised for retail.”

Mr Minto said some of the units could be combined to make larger spaces as there was little interest in the smaller units.

“We are speaking to a couple of national retailers about taking space,” he said.

He disputed any suggestion the leaseholder was an absentee landlord.

“On the basis of the amount of money we have spent, I do not think we can be accused of being absent,” he said.

Mr Minto said he had been unaware of the D2N2 bid, but said it would be in M&M Asset Management’s interests to be party to the feasibility study.

New jobs

Unlocking Growth In N2 Town Centres aims to deliver improvements to town and local centres; help them attract more shoppers and visitors; improve accessibility; create new jobs; bring in new businesses and investment; reduce the number of vacant retail units; and offer more attractive places to work and live.

A business case will be put forward for each individual project, most of which are due to begin this year.

Nottinghamshire County Council estimates that in total the seven projects listed could create around 612 jobs.

The individual projects will each attract additional public and private sector investment.

County council leader Mrs Kay Cutts said: “Improving our town centres will play a vital role in helping us to fulfil our ambition of making Nottinghamshire a great place to live, work and visit.”

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Service charges are criticised

Tenants who recently moved out of The Buttermarket say there was an attempt to pass on the landlord’s portion of the cost of last year’s refurbishment to them as increases in service charges.

Mr Mike Willis, owner of Wiseguys Menswear, had a three-year lease in The Buttermarket that expired in August last year.

He said he was paying £12,500 a year in rent and £700 a quarter in service fees.
“The service charges should pay for cleaning, toilets, of which there are none, and security, of which there is none,” he said.

“They had the roof done and my service charges leapt up to £4,000 a quarter.

“How can your service charges be more than your rent? The lease said reasonable price increases.”

Mr Willis left The Buttermarket for a shop on Middlegate.

“Years ago The Buttermarket was a thriving place, but people have been priced out and it is deserted as a result,” he said.

Giles And Bella, now of Kirkgate, is another store that moved out. Owner Judith Jess said: “We were there for seven years and had quite a big unit.

“Our rent was £25,000 a year, which is not bad for a shop in the middle of town, but there was no running water or heat.

“However, our service charge was £25,000 a year. They seemed to be able to up it when they wanted. I wanted to set a limit so I could budget.

“It was a very stressful place to be. You put all your energy into running a business, but it knocked the stuffing out of me. We are so much happier where we are now.

“The Buttermarket should be filled with shops like us.”

Mr Ian Minto, of M&M Asset Management, said: “The tenants have occupational leases that include a service charge, but the majority of the works done were paid by ourselves and the council.

“They have leases that allow a reasonable proportion to be paid towards these works. We only charge what we are legally able to.”

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