Rising Costs Force Sutton to Abandon Preferred Developer Deal for Town Centre Revamp

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The London Borough of Sutton sought a development partner to agree with the delivery of the redevelopment of the St Nicholas Shopping Centre, Secombe Theatre, Gibson Road Car Park and Civic Centre sites, collectively known as ‘Sutton Civic and Town Centre Regeneration’, including the construction of a new Civic Hub for the Council. 

The Council has decided to terminate the procurement process because the proposed scheme, including the new Civic Hub, is no longer financially viable for the Council. The project’s affordability was initially predicated on the construction of the Civic Hub being funded through capital receipts generated from the sale of surplus land for residential development, together with revenue savings from a reduced space requirement and additional income from town centre assets. Any rise in construction costs would necessitate increased borrowing, placing additional pressure on the Council’s revenue budget and requiring savings to be found in other areas. The Council has concluded that the additional costs identified through work undertaken to date with the developer, along with the risk of further cost escalation, render the proposed scheme unaffordable.

The notice was published on 8 January 2026, but as the procurement has been abandoned, there are no longer active tender documents or an opportunity to bid. For more background, you could contact the listed officer (Steve Hoy at steve.hoy@sutton.gov.uk).

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