Kirklees Council is to make money on a loan to developers to turn the former Co-op store in Huddersfield into student flats, it has been revealed.
The 1930s building in New Street is to undergo a multi-million pound revamp.
Delighted councillors who have agreed the refurbishment of the site with developer SKA Developments have described the move as “a really good news story” and “a very sensible investment.”
“It ticks all the boxes,” said Clr Peter McBride, who supported the project at a meeting of Kirklees Council’s Cabinet.
The financial risk to the council is said to be “minimal.”
And it means a new lease of life, as well as three extra floors wreathed in bronze cladding, for the annexe to the original Co-op complex.
It is destined to be turned into 75 one and two-bed student apartments creating 135 student bedrooms.
The scheme will benefit from a loan from the council’s Property Investment Fund (PIF) – a £25m “war chest” of regeneration cash.
The loan amount has not been made public but it is understood to be in the single millions, and capped at no more than £10m.
The building has not been used since 2004. Previously the nightspot Heaven & Hell, the building fell into disrepair when the club closed its doors.
Zeb Pervaiz, SKA Developments’ director, praised the council for supporting the project and spoke of the company’s pride in transforming the site.
“We’ve worked towards this goal for more than six years, so to see it finally come to fruition is fantastic,” he said.
The family of property entrepreneurs, which sold its 40-year-old manufacturing operation SKA Textiles to focus on property development, previously pumped £5m into renovating Standard House on Half Moon Street in Huddersfield to provide student accommodation.
Another £2.5m scheme, in a block of property at the top of nearby Dundas Street, will be opened in the coming weeks.
Karl Battersby, the council’s strategic director said: “There is no specific figure agreed at this point, however the final amount agreed as a loan would be at a rate of interest allowing the council to generate a small amount of income.
“We are confident that by making a sum available to SKA to remove the initial development risk, a significant landmark building will be brought back into use, enhancing the town centre, at no cost to the local authority.”
