Hope for Swindon's North Star ski development as investment company proposes take over

By Roger Ogle - 12 January 2017

CommunityBusiness

A leading property investment company has submitted a proposal to take over the scheme to create a regional leisure destination at North Star in Swindon.

Seven Capital Investments Ltd, which is also one of the UK’s leading private capital funders, has agreed in principle to acquire control of Moirai Capital Investments in order to take forward plans to transform North Star with more than £100m of investment.

Swindon Borough Council had cut ties with Moirai in December, taking the decision to serve notice of termination after proposals by Moirai to transform the area with more than £100m of investment stalled.

The Council served Moirai notice of its intention to terminate the development agreement and three of the leases granted to the developer covering the former Clares site, which had been earmarked for an indoor ski slope, water park, indoor arena, hotel and other leisure and sports-related retail.

Currently managing a development portfolio of more than £800 million, Seven Capital has been responsible for major property investments across the country and has identified the North Star development as an ideal opportunity for it to invest in the leisure market.

Moirai was given until 12 January 2017 to fulfil the terms of the notice or see the development agreement terminated. But following the proposal by Seven Capital, the Council withdrew the notice of termination yesterday (11 Jan 2017).

A period of due diligence will now be carried out by both the Council and Seven Capital which, if successful, will see the Council’s Cabinet consider whether to approve the proposal.

Seven Capital has indicated it would also work with Moirai on the Oasis site.

If Seven Capital’s proposals are supported by Cabinet, detailed planning proposals could be submitted later this year.

Cllr Garry Perkins, Swindon Borough Council’s Cabinet Member for the Economy, Regeneration and Skills, said: “It was a bold call to serve the notice of termination on Moirai, but we had to take that action to kick-start this hugely exciting scheme and get it moving again.

“Our decision has been vindicated as a major funder has stepped forward with an impressive track record of developing major schemes, which is willing to pick up the baton from Moirai and help us deliver what will be a landmark regeneration project for the town.”

However, following calls for ties with Moirai to be severed in November last year, the Labour group leader Cllr Jim Grant said: "Once again, the council promised and failed to deliver. Instead of crowing about resurrecting this deal, Councillor Perkins should be apologising to local businesses who have not received money owed to them by Moirai.

"The fact that Moirai have had to find another company to fund the project shows that they had no financial backing in the first place, which brings in to question the Council’s ability to carry out a thorough due diligence in advance of agreeing these type of contracts.

"We can only hope that they have learnt their lessons and this is not going to result in yet another abject failure to deliver on behalf of the people of Swindon.

"If Labour had been running the Council in 2014, we would have cancelled all the contracts with Moirai, sought a credible partner to deliver the project and the people of Swindon could well have been enjoying a snow dome and other high quality leisure facilities.

"It still remains to be seen if Seven Capital are fully committed the vision for North Star to become a regional leisure hub with a snowdome or that they would just like to hold some profitable land to use for their own devices.”

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