Published: Sunday, 23rd November, 2008 11:45am

Heart of Slough finds property market tough

by Chris Lawrence

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PLANS to provide office and residential accommodation at the multi-million pound Heart of Slough project have been hit by the collapse of the property market.

Work on a planned 1,500 houses and nearly 34,500 square meters of office space at the £400 million square metre Wellington Street site has stalled.

Council officers have been unable to find a housebuilder to fund the development on the site of Thames Valley University after Berkeley Homes withdrew in July and have suspended the bidding process until next year.

Director of Resources Andrew Blake-Herbert said the council would resume its search if the project on the Brunel Roundabout gains planning approval.

He said: "After Berkeley Homes pulled out we have been searching for new developers but because of the market circumstances we haven't been able to do that. We will wait for approval in February or March and then go back out to the market."

"It is more tricky in the current climate - not in terms of the council builds but for private developers because there is no requirement for them to start building. The overall scheme doesn't change and we remain fully committed to starting as early as possible."

Meanwhile developers cannot start work on the 34,500 square metres of office space until tenants sign a pre-let agreement to lease the buildings.

Development Securities had hoped the council would relocate Town Hall staff to the site but cabinet rejected the proposals last month.

Executive Director, Julian Barwick, said: "While the new headquarters building for Slough Borough Council has always been a useful anchor for the Heart of Slough scheme, we have always treated the two as completely separate.

"This is a long-term project and we are taking a long-term view . We along with our partners are fully committed to the Heart of Slough development and we will proceed with the development of the office element when either a pre-let or funding partners are in place."

Mr Blake-Herbert said plans for a new library and the refurbishment of the bus station remained on schedule.