Developers locked in talks to transform Meadowhall site

London & Stamford and British Land want to build on land next to the site and are said to have lined up retail giant Ikea as a main tenant.

British Land sold half of its stake in Meadowhall to London & Stamford in 2009.

The £588m deal included an option on land next to the site, which is currently owned by British Land.

Martin McGann, finance director at London & Stamford, said: “We are now exercising that option.”

He told the Yorkshire Post: “The price is yet to be agreed between us and British Land. Arbitrators are helping us to a number.

“We have got a view and they have got an idea. Theirs is high and ours is low – such is life.”

The land, which has outline planning consent, is set aside for general employment and business use, which also allows for limited housing.

The new retail element is unlikely to be directly connected to the existing centre.

Mr McGann added: “There are plans being worked up over what the opportunities for that land might be.

“We would want them to be opportunities that were consistent with the retail offering at Meadowhall and seek to be another attraction for people to come and visit Meadowhall and whatever goes on in the surrounding land.

“It should be complementary from our point of view.”

He did not want to comment on reports that Ikea is lined up as a tenant.

A spokeswoman for the Swedish group said yesterday: “Ikea has been identifying sites around the country for potential stores, including the area of South Yorkshire. However, we have nothing to confirm at this point in time.”

A spokeswoman for British Land said: “We are not providing any comment.”

Any proposals to expand the offer at Meadowhall will be examined closely by planners.

A newspaper report yesterday said the developers are looking at increasing its size from 1.5m sq ft to more than 2m sq ft.

This could fuel fears about a potentially negative impact on the city centre.

Concerns could be mitigated, though, by Hammerson’s recent announcement that it is recommencing work on its £600m Sevenstone retail development.

A spokeswoman for Sheffield City Council said: “Sheffield hasn’t received any planning application for the retail expansion referred to, or had any pre-application approach.

“There would be substantial issues to consider for any such development, including for example planning policies, retail impact, transport and highways capacity, and air quality, as well as any benefits for customers, communities and the local economy.

“Until the city has seen any proposal we would be unable to comment.”

London & Stamford’s deal with British Land in February 2009 remains its only foray into the retail sector.

The listed company, chaired by veteran property investor and racehorse owner Raymond Mould, is very pleased with its investment, said Mr McGann.

He added: “We consider Meadowhall as really one of the top destinations in the country. While nobody is insulated from the wider impact of the economy, Meadowhall continues to attract a lot of people and footfall is very good.”

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