A household goods store that lost its premises following the demolition of the Elephant and Castle shopping centre has until Monday, June 6, to accept the developers’ latest relocation package or cease trading altogether.
Delancey and Lendlease, the developers behind the Elephant and Castle regeneration, have offered Rakesh Patel, owner of Pricebusters, a total of £420,000 and a new retail unit in nearby Elephant Park.
This is an increase on their April offer of £392,000, but Rakesh, who is contributing £500,000 of his own money, says it won’t cover the total cost of relocation, which he says is over £1 million.
Rakesh said: “I just can’t afford it. If I accept [the offer], then I’m leaving myself exposed to finding £100,000 from somewhere else – where I don’t know.
“If I reject the offer that would be the end of Pricebusters. I’m clutching at straws at the moment just trying to survive.”
Rakesh adds that his retail unit is an “empty shell” with no plumbing or electricity, which increases relocation costs.
In April, Rakesh was told he had until the 22nd to accept or reject the £392,000 offer, but disagreements over ‘market rent’ meant negotiations rumbled past the deadline. But he believes this deadline is “crunch time”.
When Lendlease and Delancey won the Elephant and Castle regeneration contracts, they signed section 106 agreements, which meant they had to provide £634,700 to support the relocation of displaced traders.
But Rakesh says this amount was never enough and the council has done “a bad deal with developers”.
He has also accused the council of “washing their hands” of him after they urged him to accept the offer.
In a letter that the council sent to Rakesh, they wrote: “There has been considerable effort by the council and developers to find a financial package that can enable you to trade again at the Elephant which we all consider would be the best outcome.
“I have however now reached the view that there is no remaining scope to increase the amount that the developers can make available to support you.”
“I am also of the view that the offer is a fair and reasonable one.”
Cllr Helen Dennis, Cabinet member for climate change and sustainable development, said: “We understand this is a very difficult time for businesses, which is why we have offered Mr Patel as much support as we can at this point and I think it is unfair to say we have wiped our hands of it.
“The council has negotiated, on his behalf, the largest discretionary payment from the Delancey relocation fund by some margin, which will fully cover all his fit out costs of the new store – which is in prime position in Elephant Park.
“In addition, we have agreed time extensions in order for Mr Patel to either take up the offer or not. In the meantime the unit has not been marketed to another party with a substantial loss of rent, although significant interest has been received from other businesses.
“The council has provided a wide range of support for dozens of businesses, many of whom have already relocated successfully in the area and we wish Mr Patel the same success.”
A spokesperson for Lendlease said: “We’ve made further offers of support and extended our deadline on several occasions to help secure Pricebusters’ future within Elephant Park. We’ve also increased our contribution towards the fit out of the unit, whilst maintaining our offer of a heavily discounted rent.
“Additionally, we have told Mr Patel that there is flexibility to amend these terms to best suit his needs as long as the total financial incentive does not increase further. It’s an offer that provides considerably more support than is required by planning regulations and reflects our eagerness to ensure Pricebusters maintain a presence in Elephant & Castle.”
Delancey’s Elephant and Castle Town Centre team said: “The Elephant and Castle Town Centre team has been working closely with Mr Patel since August 2021 to ensure the successful relocation of Pricebusters to Elephant Park, a site 200 yards away from the former shopping centre and well positioned to attract business.
“As part of these discussions we made an increased offer of financial support in April 2022. This offer is substantial, fair, and based on the specific requirements of Pricebusters. While the deadline to accept this offer has passed, and multiple extensions have as well, we have agreed to keep the offer on the table until Monday June 6, at the request of Mr Patel, and are hopeful that he will accept it.
“We want nothing more than for Elephant and Castle’s long-standing traders to be successful, and for local retail destinations to thrive. Indeed, a significant number of these traders have already moved to Castle Square, Elephant Arcade and Ash Avenue at Elephant Park, which are proving to be popular retail, food, and leisure destinations for the local community.
“We look forward to hearing from Mr Patel soon and hope that our financial help is accepted and Pricebusters will proceed with their move to Elephant Park.”