Delayed plans to build 140 homes on the flattened Greyfriars House could be further waylaid if developers are made to include affordable flats.
The former office building on the Gallowgate was torn down three years ago.
Adorned with its own Nuart mural, the complex was previously home to the Department For Work And Pensions.
Plans to build scores of apartments there were approved in principle around the time it was demolished.
And owners Telereal Trillium have been marketing it since April 2021 – but with little success.
Now, the company is pleading with local authority decision-makers to extend a waiver on the need to include affordable homes.
They say this is a “vital instrument” to spark interest, and its withdrawal would hamper their beleaguered efforts.
What’s happening with the Greyfriar’s House site?
By the end of 2022, Telereal Trillium admitted that it was struggling to bring the scheme to fruition.
And the troubles facing the sector have been highlighted again this week with the news that Stewart Milne Group has entered administration – with more than 200 jobs lost.
Despite the promise of a “renewed effort” to get things moving in 2023, the barren site off the Gallowgate remains in limbo.
And now the developers are seeking to extend a council deal designed to create more city centre housing, as they continue their campaign to spark progress.
Why are affordable flats a deal-breaker for Greyfriars House site?
The affordable housing waiver was introduced in 2018 to bring more people onto the struggling high street.
It means that the normal requirement for cheaper homes to be included in schemes is dropped for those in the city centre.
And, after proving a success, it is being retained until 2025.
Telereal Trillium previously said the stipulation had been a “beneficial factor” in discussions with housebuilders.
However, it comes with a catch: Building work should begin within a set time.
And in the case of the Greyfriars House development, it’s due to expire on January 31.
New papers submitted to the council plead for this deadline to be extended, stressing that it will be a key deal-sweetener.
Affordable flats waiver a ‘significant stimulus’ at Greyfriars House spot
Documents submitted by Calton Planning and Development state: “The existing agreement makes provision for this site to be exempt from the requirement for 25% affordable housing.
“TT Group recognised the value of the waiver as a significant stimulus to the prospects
of the site at 54 Gallowgate attracting developer interest and being delivered.
“The presence of the waiver on affordable housing has been a critical factor in making the redevelopment of this site more viable and to encourage discussions with potential
purchasers.”
Now, they want it extended until December 31, 2026.
Why is waiver needed?
Aberdeen City Council is being warned that allowing the waiver to expire could be disastrous for the scheme.
The documents continue: “The development market across the UK is struggling with increasing build costs, an increase in interest rates caused by inflation and reduced demand for housing as a result.
“The marketing strategy has not yet returned a viable offer.”
‘The waiver is a vital instrument’
Calton concludes: “Some offers have come close and the developers have made it clear that, if the waiver falls and affordable housing has to be provided the site value/offer value will accordingly reduce and lead to a nominal value.
“As a result, the waiver is a vital instrument to keep this site attractive to developers, once the market activity for city centre housing recovers.”
The council will decide on the request in due course.
You can see the plans here.
Conversation