Shropshire Council returns Shrewsbury shopping centres onshore
Yesterday [Monday 1 February 2021] Shropshire Council successfully returned the Shrewsbury shopping centres onshore following a technical and administrative process. This is the latest step in the council’s wider plan to transform Shrewsbury.
The previous owners of the centres held the assets offshore (outside the UK), as Jersey Property Unit Trusts (JPUTs). A JPUT is a well-established and regulated property investment vehicle in the United Kingdom.
When Shropshire Council agreed to buy the centres in 2017, by far the simplest and most cost-effective way was to purchase the centres as JPUTs. The council planned to ‘onshore’ the assets (that is, return the assets to the UK financial market) at a time when the transition would be most timely and efficient. The onshore process is complex and required a significant amount of due diligence and investigation to ensure the procedure was completed in a timely and efficient manner.
The primary purpose of purchasing the centres was to support the economic growth and regeneration of Shrewsbury town centre. The council has full control of the centres, enabling it to further achieve its goal of making Shrewsbury an even better place for residents and attracting more visitors and business to the town.
Steve Charmley, Shropshire Council’s Cabinet member for assets, economic growth and regeneration, said:
“We are delighted that the centres are now fully onshore. This was a lengthy and complicated process and I want to take this opportunity to thank everyone who has worked tirelessly in ensuring this was achieved in the most efficient way possible. This has been an ambition of the council’s from the outset and is another important step on the journey to enable us to deliver a vibrant, sustainable, and commercially successful town centre for all.”
Further information
Work began on the potential acquisition of the centres in September 2017, with wide ranging due diligence undertaken on financial, legal and property considerations. The purchase was approved at a meeting of the full Council on 14 December 2017, and contracts were exchanged on 21 December 2017. In January 2018 Shropshire Council officially purchased the Pride Hill, Darwin and Riverside centres.
