Council gives a boost to Bradford's regeneration

It's as if Christmas has come early for developer McAleer & Rushe.

Bradford city council has agreed to provide £6m to bridge the funding gap at the developer's £45m mixed-use Southgate scheme in the city centre.

As reported in EG last month, the developer went cap in hand to the council for extra cash after its funders, Bank of Scotland in Ireland, said it would only provide 75% of development costs on condition that the developer secures and spends the remaining 25% of costs first. And this was despite the developer securing a pre-let for the entire 117,000 sq ft office element and Jury's Inn as the hotel operator.

But the clinking of champagne glasses may not last long, as a gift this is not. The developer will need to have paid back the £6m, with interest, by the time the project is completed in October next year, which is when Provident Financial, wants to move into its new offices.

And with the council already spending £10m on Bradford's City Park and mirror pool water feature at a time when local authority finances are already under pressure, the council will no doubt be feeling that this repayment date can't come soon enough.