Can URW really deliver on Croydon?

EDITOR’S COMMENT It is the end of an era. Not only for Printworks as British Land prepares to start redevelopment of the old printing plant in Canada Water, SE16, but for potentially the worst, most wasteful and I’d wager most expensive property partnership of the past few decades – if not all time.  The Hammerson/Westfield joint ownership in Croydon, south London, finally came to an end this week as Hammerson’s Rita-Rose Gagné did what she seemingly does best and called it quits on an asset that was never going to add any value to the REIT. Gagné’s turnaround of Hammerson has been focused on making sure that “nothing is off the table”, that you “don’t fall in love with your assets” and that she is intently focused on navigating a path back to growth. It is a focus that has had her labelled a hologram. Not present in the market, not making big statements and no wining and dining in the, what did The Times call it? “champagne-soaked world of British property”. It is also a focus, whether Lighthouse likes it or not, that has started to stabilise the business. There is plenty more work to do, especially in the environment we all find ourselves in now, but surely a focus on the business rather than her own profile is a good thing, right? Perhaps not very “champagne-soaked” property, but proper nonetheless. But back to Croydon.  With Hammerson now out and Unibail-Rodamco-Westfield in full ownership of 25 acres of what should be one of London’s hottest suburbs, is Croydon finally going to see the development it so desperately needs? Does URW have the ability to deliver? Its 2022 year-end figures show a debt pile of more than €20bn (£18bn), which it has been trying to reduce, not add to. It may well have got a “bargain” from Hammerson, but financing the designs, consultation, planning, construction and development is certainly not going to come cheap – especially in today’s market. There is a great project to be done in Croydon, however. Some 25 acres of town centre ownership, two big (and dated) shopping centres, high street frontage, office blocks, car parks… this should be the poster child for how to reinvent a place. There is such a huge opportunity here for the public sector, private capital and the actual public to work together to create a functional town centre. A place where people can work near home, where people can live affordably, where they can engage in activities that bring joy and a place that is safe, equitable, sustainable (in all senses of the word) and healthy. A former editor of this realm had a soft spot for Croydon. This editor, despite calling nearby Penge her home for more than a decade, really doesn’t, especially now it is a daily feature with a train change on her commute. Croydon, for me, is lacking almost entirely in personality. What is Croydon all about? It should be – could be – a really cool suburb of London. Perhaps the perfect 15-minute city. Great access in and out of the capital, easy access to some beautiful countryside, access to the M25. Why wouldn’t you want to live, work and play in Croydon? Because it has no heart. URW says it is “excited” to uncover the “huge potential” Croydon has to offer and that it is working closely with the local mayor and the GLA to develop a new masterplan for the site this year. That’s great. And I’m sure the residents and businesses in Croydon are excited by that too. But after more than a decade of zero delivery, URW has got to deliver this time. I really hope it does. I would love to have my opinion of Croydon transformed. But any meaningful transformation, any creation of that heart, is going to take time, a big balance sheet and a whole new way of thinking about how to build thriving new town centres.  To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews