Catford Centre in Catford is facing financial challenges as businesses in the 1970s shopping precinct struggle to pay their rent, accumulating a total debt of £1.3 million to their landlord. The details of the arrears were presented in documents scheduled to be discussed at Lewisham council’s cabinet meeting.
The report attributes the difficulties faced by the shopping centre’s tenants to the tough conditions of the high street and retail environment. The Catford Regeneration Partnership Limited (CRPL), wholly owned by Lewisham council, has been acquiring leasehold interests in and around the centre since 2010 in anticipation of the town centre’s future revitalization.
As of March this year, the council had provided a loan of £16.9 million to CRPL, with the loan expected to increase to £17.6 million by March 2025 if no interest repayments are made this year. The CRPL has struggled to meet loan repayment obligations to the council in previous years.
The CRPL’s property portfolio includes stores within the shopping centre, retail units on Rushey Green and Catford Broadway, as well as several flats, generating an annual rental income of approximately £1 million. Recent years have seen the need for significant expenditure on repairs to the deteriorating shopping centre building, such as replacing the glass canopy and repairing roof areas.
Future plans involve carrying out urgent repairs amounting to around £825,000 over the next three years. The Catford Centre and Milford Towers estate, situated above the shopping complex, are slated for demolition and redevelopment as part of Lewisham council’s initiative to rejuvenate Catford town centre and construct 2,700 new homes over the next two decades.
Despite being in the works for more than ten years, concrete redevelopment plans for the shopping precinct and estate are still pending finalization. The regeneration project also includes rerouting the South Circular road to establish a new pedestrianized square in the town centre.
The challenges faced by businesses in Catford Centre highlight the broader issues affecting retail environments across the country. As online shopping continues to grow in popularity, traditional brick-and-mortar stores are struggling to attract customers and generate sufficient revenue to cover their expenses.
In order to address these challenges, local councils and property owners must work together to find innovative solutions that will revitalize shopping precincts like Catford Centre and create vibrant, thriving spaces that benefit both businesses and the community at large. By investing in necessary repairs, supporting local entrepreneurs, and engaging with residents to understand their needs and preferences, Catford Centre can be transformed into a successful and sustainable hub for commerce and social interaction.
