Minister Ritchie signals progress on Royal Exchange development

Social Development Minister Margaret Ritchie MLA, today announced that her Department had agreed Heads of Terms with the developer for the proposed Royal Exchange retail-led regeneration development in the North East Quarter of Belfast City Centre.

The Minister said: “I am pleased to announce that the Department for Social Development has agreed Heads of Terms with Royal Exchange (Belfast) Ltd for taking forward the £360million Royal Exchange Development which aims to build on the success of the £1.4billion investment at Laganside and Victoria Square."

The next step is for DSD and the Developer to finalise a development agreement by early-summer 2008 which will contract both parties to the promotion of the Development. The development agreement will be subject to a number of conditions; including the Developer satisfying DSD’s due diligence, finalising the contents of its proposal and securing planning permission.

Ms Ritchie added: “When the conditional agreement is signed, my Department will consider promoting a statutory Development Scheme for the North East Quarter which will go through a public participation process and, if adopted, will provide the land use framework for the area. Consideration will also be given, in due course, to the need to initiate the compulsory land acquisition to assemble the site.

“The importance of the regeneration of Belfast City Centre to the further development of the Northern Ireland economy is reflected in the strong support of my Department for Royal Exchange. This marks a further step in establishing Belfast as a major European regional city, providing retail, arts and leisure facilities that will attract more visitors, further develop the evening economy, provide city centre living, and take the City to the next level in its renewal.”

The developer is aiming to open Royal Exchange by early 2013 and estimate that the Development will provide 1,000 jobs during construction and 2,000 jobs in retail and leisure when completed.

Notes to Editors:

1. The Royal Exchange Development, located in the North East Quarter of Belfast City Centre, seeks to develop a retail-led mixed use regeneration scheme which will include premium brand shopping, City Centre living and complementary amenities. The concept is based on the development of a new department store alongside two further major stores, complementary high quality retail, restaurants, bars, cafes, apartments and offices (at upper levels). A hotel is to be located between Lower North Street and Church Street, with frontages onto Lower North Street, Church Street and Writers Square. It is proposed that a 700 space, two level basement car park is located between Lower North Street and Donegall Street, also providing a service area for the hotel and department store. The car park is accessed and exited from Lower North Street. Cultural accommodation is proposed within the former Northern Bank building, which has been identified for a small theatre, studios, community art gallery with a small amount of speciality retail. The total floor area of the scheme is in the region of 800,000 sq ft which includes approximately 420,000 sq ft of retail.

2. In Autumn 2004 following appraisal of development proposals for the North East Quarter DSD announced that William Ewart Properties Ltd and their development partners Snoddons Construction Ltd (Leaside Investments Ltd) and ING Real Estate, would be given first opportunity to respond to the future development brief for that Area.

3. In February 2005 DSD put forward for public consultation the proposal that Westfield Shoppingtowns Ltd, owners of Castlecourt, should be given first opportunity to respond to the future development brief for the North West Quarter. Following public consultation DSD confirmed in August 2005 that Westfield would be given first opportunity to respond to the future development brief for the Area.

4. DSD issued Development Briefs to Ewarts and Westfield in September 2005 with the stipulation that they respond with proposals within three months of receiving the briefs. Ewarts and Westfield brought forward detailed proposals for regeneration projects for the respective Areas.

5. Following appraisal of the respective proposals the then DSD Minister, David Hanson MP, announced on 28 March 2006 that DSD had selected the Royal Exchange proposal and Royal Exchange (Belfast) Ltd (a Joint Venture between Leaside Investments Ltd and ING Real Estate) as preferred developer subject to the following conditions:

• Royal Exchange (Belfast) Ltd’s proposal meeting all statutory requirements including obtaining planning permission and satisfying DSD's due diligence, Development Scheme and Vesting requirements; and
• negotiation with Royal Exchange (Belfast) Ltd to achieve a Development Agreement deemed satisfactory to Government.

6. Mr Hanson also announced that further consideration would be given to the future nature and timing of comprehensive development of the NWQ although the vision for the site remains that approved in the NWQ Masterplan.

7. Media enquiries to DSD Information Office on 028 9082 9078. Out of office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.