Farnworth Town Centre Development Scheme – VEAT Notice for Option Agreement with Capital & Centric

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Bolton Council issued a 30-day Voluntary Ex Ante Transparency Notice regarding the proposed Farnworth Town Centre Development Scheme, scheduled to commence on or around 3 July 2023.

The scheme is publicly funded through a combination of grant and loan financing from Bolton Council Future High Street Funds, Brownfield funds, and lending from Greater Manchester Combined Authority (GMCA).

Bolton Council intends to enter into an Option Agreement, with an annexed Buy Back Option and a Price and Overage Deed, with Capital & Centric (C&C) for the planned regeneration development at Farnworth Town Centre.

The Option Agreement obligates Bolton Council to sell the land to Capital & Centric should the option be exercised.

If exercised, Capital & Centric may develop the land in accordance with planning permission (subject to permitted variations) but is not required to do so.

Bolton Council can exercise the Buy Back Option if: the funding agreement with GMCA is not entered into in line with the agreed funding strategy; and/or a forward purchase agreement is not entered into in line with the agreed funding strategy; and/or there is broadly an insolvency event in relation to C&C; and/or practical completion of the development is not reached within a certain timeframe.

The Price and Overage Deed allows for deferred consideration payable for the property to Bolton Council shortly after practical completion, secured by way of a charge.

The contract value is AUD 28,200,000.