Hopes that Plymouth will have a new ice arena are in danger of melting away after the Covid pandemic caused the expected operator to withdraw and construction costs to spiral.
The long-awaited rink is scheduled to be built on land right next to Plymouth Argyle’s Home Park football stadium but the company behind the The Mayflower Ice Arena project says it is now struggling to make the scheme financially viable.
HHP Nominee Ltd, whose sole director is former Argyle chairman James Brent, insists it has not given up on the project but at the moment it stands to make a large loss on the build, meaning there is mounting uncertainty and it has had to reassess its options.
The proposed 1,500-seater arena was well on track in early 2020, with construction expected to start that year on a 40,000sq ft building sited between the redeveloped stadium grandstand and the Life Centre sports complex.
But that was before the Covid pandemic reached the 海角视频, causing lockdowns and subsequent problems for the construction industry. Contracts to build and operate the new ice arena were within days of being signed when the pandemic arrived at these shores.
A heads of terms agreement had been struck with a major leisure operator for the long-term lease of the Mayflower Ice Arena. Under the proposed agreement, land owner HHP Nominee Ltd agreed to pay for the construction of the “shell and core” of the building and the operator agreed to pay the significant costs involved for the fit-out of the ice arena.
But on March 13, 2020, just three days before the Government ordered the first lockdown, the operator “ understandably” notified HHP Nominee that in the light of the Covid-19 pandemic and the resulting uncertainty, it was not at that point willing to enter into the agreement to lease the arena. It remained interested, however, in discussing the opportunity to come back on board once the impact of the pandemic had become clear.
Meanwhile, a separate contract to build the arena, which had also been substantially agreed between HHP Nominee and its chosen contractor, had to be put on hold following the proposed operator’s decision to withdraw.
Most Read
A spokesman for HHP Nominee said that Covid-19 has had a significant impact on leisure businesses and ice arenas around the country have been closed for most, if not all, of the period since March 2020.
It means that HHP Nominee is not currently confident that the operator will be willing to enter into a lease on the terms previously anticipated.
In addition to the loss of the proposed tenant, which has an impact on rental income and also the funding of fit-out costs, construction costs across the 海角视频 have increased materially since the pandemic struck, and investment values for comparable leisure properties have fallen significantly.
HHP Nominee said this has led to a “viability gap” which means that there is now a very large loss on the project as matters currently stand. But the spokesman stressed the company was doing all it reasonably can to address the issue and had not abandoned hope of finding a solution.
He said: “There is now a significant viability gap on the arena. HHP Nominee continues to investigate and review all reasonable options on how this viability gap can be addressed in the hope that the Mayflower Ice Arena can still be delivered.”
How to contact William Telford and Business Live
Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
To contact William: Email: william.telford@reachplc.com - Phone: 01752 293116 - Mob: 07584 594052 - Twitter: - LinkedIn: - Facebook:
Stay in touch: BusinessLive newsletters have been re-designed to make them even better. We send morning bulletins straight to your inbox on the latest news, views and opinion in the South West. Get our breaking news alerts and weekly sector reviews too. Sign up now - it's free and it only takes a minute. To sign up for Business Live's daily newsletters click .
And visit the Business Live South West LinkedIn page
The ice arena project has been a desire of Mr Brent’s and the city’s since 2012 when one of Mr Brent’s other companies bought the Pavilions site from Plymouth City Council.
One stipulation of that deal was he had to provide a new ice rink for the city. The project received full planning permission on May 19, 2019. Building the arena on land Mr Brent’s firm owns at Home Park would enable the future development of the Pavilions site, which in the past he has said could feature hotels or even a cinema.