Property and hospitality firm Gainford Group has accused Newcastle City Council of failing to support its development ambitions, forcing it to look elsewhere to invest.
The Chester-le-Street firm, which employs more than 1,200 people, operates care homes as well as hotels, bars and restaurants across Newcastle, including The County Hotel, The Vermont Hotel, Aveika, Livello and The Hudson. The group has also been planning for some years to regenerate the former Premier Inn hotel in New Bridge Street, a property it acquired in 2018, while also launching plans to develop its recent acquisition, Milburn House in Newcastle’s Dean Street.
Accounts for the company reveal Gainford Group’s plans for the historic building – home to businesses including Newcastle BID company NE1 Ltd, Burnetts Solicitors and bars and restaurants including Colonel Porter’s and El Torrero – include the creation of a mixed-use development of 120 residential apartments, alongside office space, bars, restaurants and retail units. The accounts say “both plans for development are in the hands of Newcastle city planners.”
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However, following publication of the accounts, director Imran Khaliq said Gainford is now looking to invest outside of the region, accusing the local authority of failing to support its plans.
He said: “Gainford has a historic track record of successfully redeveloping key run down areas of Newcastle city centre like no other – Gainford has done this for nearly two decades, creating new jobs and breathing new life into once abandoned areas across the city centre.
“These redevelopments have attracted other local businesses, national and international operators to follow suit. Newcastle born and bred, we have always wanted to invest in what we call our city, our home.
“Frustratingly most of our future developments are taking longer than we anticipated due to the lack of attention and support from Newcastle City Council. Because of this a further £250m of investment is on hold for key Newcastle city centre locations.
“If we are to grow as a company we have no other option but to look to invest in other cities or outside the 海角视频, something we never thought we would have to do as our dreams and ambition have always been about making Newcastle a better place for its people.
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“Gainford Group employs over 2,500 people and already has over £150m invested in the North East, Gainford is the biggest independent property stakeholder in Newcastle city centre. Gainford is now actively looking to invest in other major cities across the 海角视频 and internationally.”
The company acquired the former Premier Inn hotel off an asking price of £3.2m in March 2018 and set in motion redevelopment plans. Its original designs were completely overhauled and in 2021 it unveiled a new vision for the site, including a 37-storey skyscraper which would include housing, a hotel and leisure uses including bars and restaurants.
At the time, the group said a number of suggestions were set to go before council planners that would include the huge, mixed-use skyscraper, but those plans have yet to progress.
A city council spokesperson said: “Newcastle provides a wealth of opportunity for inward investors, and as a council we work proactively and collaboratively to support the investments in our city.
“We support developers through the statutory processes which must be followed to ensure we get the best development for Newcastle.”
Mr Khaliq’s comments come as the firm announces record results for 2023, with published accounts showing the firm chalked up turnover of £49.3m, up 4.23% on the previous year, while operating profits jumped 31% from £6.4m to £8.4m. Operating profit increased from £7.2m to £8.65m and overall profit for the year was £6.32m, up from £4.4m.
The accounts show that dividends of £1.33m were paid out in the year. A breakdown of turnover showed its care homes brought in the most revenue, rising from £25.3m to £27.3m, but its hotels business’ turnover dipped slightly from £22.02m to £21.92m.
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A report within the accounts says: “The year 2023 was marked by steady growth and consolidation. The group has purchased land at multiple locations for development of new care homes around the North East. Got approval of some of these sites and work will commence in the year 2024.
“The improved financial performance is attributed to the management team and the entire operational staff of the company. This positive trend is expected to continue into 2024 and beyond.”