Barwell, Brexit and Croydon’s troubled Westfield dream

STEVEN DOWNES on how the meddling of Tory politicians and the Croydon Establishment managed to ensure that the redevelopment of Croydon town centre was never going to run smoothly

Disaster area: Gavin Barwell, brought Westfield to  Croydon, advising Theresa Mayhem on Brexit

Questions were asked in the House of Commons last night which saw Croydon, the Westfield centre and Brexit all mentioned in the same breath. Things must be bad.

In one important respect, the gloomy predictions about the outcome of Brexit and Westfield’s dalliance with Croydon town centre have been linked from the start.

Because both have had considerable input from an Oxbridge-educated public schoolboy, who has never held down a proper job in his life, and landed his latest state-funded position because of who he knows, rather than what he knows.

Since he was keen to claim the credit for it, through some virtue-signalling, look-at-me tweets more than seven years ago, much of the blame for bringing Aussie supermall developers Westfield to Croydon can be laid at the door of gaffe-prone Gavin Barwell.

Barwell was the Conservative MP for Croydon Central and presumably fancied making a name for himself when in 2011 he intervened on behalf of his chums at the Whitgift Foundation, the borough’s biggest land-owners.

Barwell decided that he knew better than the shop-keepers, traders and tenants who inhabited the fading grandeur of the Whitgift Centre, and who had already engaged Hammerson, the owners of the nearby Centrale, to come in and give their shopping mall a shot in the arm.

Britain’s economy was just emerging from the worst of the global financial crisis, and the public were beginning to part with their hard-earned once again on fashion items, make-up and the kind of consumer products that had been retailed in the Whitgift for half a century.

But the shops in the centre were all-too-aware of the leaking roof and the run-down facilities. Allders, the Are-You-Being-Served era department store which anchored the centre, was struggling.

Modern shoppers expected, wanted more. And the growing trend for the convenience of  online shopping had made the Whitgift Centre’s need for that modernisation all the greater.

Back in 2011, before a deal was reached with Hammerson, it was Westfield and the Whitgift Foundation who delivered tens of thousands of leaflets with their five-point plan ‘for a more prosperous Croydon’

Hammerson had a steady track record in running shopping centres, as they had shown at Bormingham’s Bullring.

Perhaps Hammerson were not flashy enough for Barwell, though, and did not offer the kind of big bucks profits for the freeholders which might be brought to the table by the big-shots from Westfield, who just before the London Olympics had opened their second centre in the capital at Stratford.

Barwell at this time sat on the board of trustees of the Whitgift Foundation, the owners of the freehold of the shopping centre (a conflict of interest for the local MP which he tried to ignore for years).

Initially, Hammerson had the advantage, in a legal agreement with the leaseholders. For a time, it looked like a stand-off, with the leaseholders on one side with Hammerson, and the freeholders the Whitgift Foundation with Barwell and Westfield on the other. Any progress on redeveloping the centre was put on hold..

A propaganda war ensued, with Westfield trying to attract public support with a caravan parked on North End and handing out leaflets which promised a wonderful new, “prosperous Croydon”. Thousands of new jobs, they said (a mere 5,000 back then), new flats (just 600 under those proposals), and improved public transport were all solemnly promised by Westfield and their partners, Barwell’s mates at the Whitgift Foundation.

This was in 2012. Larger chain retailers, the people who pay top-dollar for the best sites in Westfield’s and Hammerson’s supermalls, were already beginning to complain about a shift in consumer habits, from visiting shops to buying ever more goods online.

Interested spectators at the time were Croydon Council, then under the control of Barwell’s former Tory colleagues from his own time as a Town Hall Conservative councillor.

How the people of Bradford saw the “development” of their blighted town centre as a result of Westfield’s interest in their city

The council was preoccupied with coping with the first round of austerity cuts handed out to them by the Tory chancellor Gideon Osborne. Westfield’s promised massive boost to the town centre might go some way to re-energising the Croydon economy, and helping the Town Hall coffers, they will have been assured by Barwell.

Besides, it was Big Business, and Big Business always knows what’s best for the community, don’t they?

Barwell, the council and the Foundation were keen not to pay too much attention to some of Westfield’s not-so-flashy achievements, though. Any warnings about what happened with “Wastefield” in Bradford, where a massive hole in the ground dominated the city centre for a whole decade, were firmly ignored.

The arm-wrestle over the Whitgift Centre looked deadlocked, until Barwell had what he thought was a bright idea, and he went to his Tory mate Boris Johnson.

Johnson was the London Mayor who had the Midas Touch, in reverse. Everything he touched turned to shit.

It was Johnson who as Mayor cancelled the planned and funded Crystal Palace tram extension. Johnson OK’d the Dangleway, the pointless and under-utilised Thames crossing at Greenwich. Johnson introduced to the capital at immense cost the Boris Bus, a nostalgic doubledecker which fails to function adequately in a number of performance areas.

The Boris Bikes have been a success, though the plans for the cycle hire scheme had been set in progress by Johnson’s predecessor as Mayor. It was on Johnson’s watch as Mayor that TfL squandered tens of millions on the Garden Bridge. The water cannon that can’t be used in this country? A Johnson initiative.

Whitgift Foundation member Barwell had himself in mind in November 2011 when he said people had been ‘working behind the scenes’ to bring Westfield to Croydon

And so it was that Barwell turned to Johnson to break the stalemate between Hammerson and Westfield. What could go wrong?

Hammerson needed the Mayor’s permission to expand its existing shopping centre at Brent Cross. Some backroom deal was done, and one morning, in the Fairfield Halls, with Barwell standing in the wings watching, Johnson walked out with owners, chairmen and chief execs of Westfield and Hammerson, to great Tory acclaim. Peace in our time!

In 2012, London Mayor Boris Johnson brought together the big wigs of Hammerson and Westfield in Croydon. It has proved a marriage made in hell

Hammerson and Westfield would work together in Croydon. It would be a bigger, better, more expensive supermall. Centrale would be included now.

For Croydon, it has proved a marriage made in hell.

Progress on large-scale, complex developments is notoriously slow when dealing with just one developer.

But while they were always polite in public, the relationship between rivals Hammerson and Westfield, in the BoJo- and Barwell-brokered “Croydon Partnership”, has never been an easy one.

By 2013, they’d put together a scheme to go to the council for planning permission. In 2014, there was a change in political administration at Croydon Town Hall, though there was no change in attitude towards the “Hammersfield” project, as the Blairite leadership of Tony Newman warmly embraced the Tory-inspired scheme.

Perhaps too warmly, and rather than behave like a critical friend, scrutinising the proposals in the interests of the whole of Croydon, Newman opted to become a cheerleader for the development.

As with Barwell, this was Newman’s chance to make a name for himself.

The scheme needed a gathering together of parcels of land in and around the Whitgift Centre, and a Compulsory Purchase Order of that kind of magnitude requires a public inquiry. That was held in February and March 2015.

The government planning minister accepted the planning inspector’s report, which recommended that the CPO and the development should go ahead.

The decision was embraced as epoch-making by Newman, who was so keen to associate himself with the project, he even had a video of himself plastered across the council website.

 

And that was it, surely? Work could begin now, couldn’t it?

That was September 2015, which was around the time that Barwell was putting the finishing touches to his execrable memoir, How To Win A Marginal Seat.

Barwell had hung on to Croydon Central, just, in a General Election which his party won when promising to hold an in-out referendum on the country’s membership of the European Union. And so the second strand of what would undermine the redevelopment of Croydon town centre was underway.

Back in the Whitgift Centre, where the once proud Allders department store had long closed and been turned into a bizarre bazaar selling cheap fashion knock-offs, and where the leaks in the roof had only got worse, there was no sign of progress.

By 2016, Westfield wanted to double the amount of residential units in its plans

Weeks, months would pass by without any updates on what was happening from Westfield. And this on a scheme which they had originally said would be completed by 2017.

Store owners on short-term leases were given renewals to last them through the usually lucrative Christmas season, as demolition work was postponed more than once.

Come 2016, and finally the silence was broken, as Westfield announced that they weren’t happy with the plans (their plans), and wanted to have another go. Meanwhile, Boris Johnson spent most of the first half of the year touring the country in a bus emblazoned with false promises about the future after Brexit. If only the nation had listened to the Croydon experience of Johnson’s false promises.

The referendum came and went, as did David Cameron as Prime Minister, while Westfield decided that in Croydon, instead of a massive temple to retail with a bit of residential development tacked on, they now wanted to do a slightly less ambitious retail centre, but with twice the number of “luxury executive apartments” in tower blocks along Wellesley Road.

Instead of a £1billion scheme with 5,000 jobs, they now taalked about a £1.4billion, and a shopping centre creating 7,000 jobs. Not that anyone bothered offering an explanation of what these jobs would be.

The council’s planning committee nodded the revised plans all through with barely a murmur. Croydon had been waiting for Westfield for so long now, the councillors daren’t do anything to delay its progress (as if…). It was, by now, 2017, the year when Westfield had first promised that they would deliver their wonderful, shiny new supermall.

And then, somewhere halfway up a mountain in Wales, Theresa May, Cameron’s replacement as PM, decided to have another General Election. After all, Labour were now led by Jeremy Corbyn, so they were no threat, obviously.

Barwell, second left next to Croydon CEO Jo Negrini at a conference in Cannes in March 2017, continued to appear on platforms where Westfield was a key element even when a government minister

At the election Barwell, who had risen without trace to the position of housing minister, was booted out as Croydon Central’s MP, replaced by Labour’s Sarah Jones. That’s gratitude for you, after he had done so much for the place, bringing in Westfield, and all those new jobs and transport links and lovely new shops…

Nationally, May’s gamble backfired, and the Conservatives no longer had a majority in the House of Commons. The advisers who had let her call the election left Downing Street, and she replaced them with Barwell as her chief of staff, probably because he was at a loose end and available.

And so we arrived at a situation where the man who played a large part in bringing Westfield to Croydon has spent the last 18 months advising the Prime Minister on her political strategy, in the Commons and the nation at large, to deliver on a promise to see Britain exit the European Union. Which all seems to be going so well, too.

Then yesterday, Westfield announced that they are “reviewing” their Croydon scheme, in large part, they said, because of the uncertainties created by… the Barwell brand of Brexit. Oh.

Nothing now will happen on site until 2020, if it ever does.

With advice from gaffe-prone Gavin, where could the Prime Minister go wrong?

Thing is, there are other property developers and owners in Croydon, and many of them are increasingly unhappy at the way Westfield have been given such precedence, and yet been allowed to jeopardise their own prospects. Schroders, for one, announced before Christmas that they were halting their own £500million development because they were fed up of being dicked about by Westfield.

There are home-owners who have bought “luxury apartments” for £350,000, or more, on the basis that they would soon be living alongside a vibrant, lively town centre with its very own Westfield, full of bars and nightclubs. With no prospect of the twon centre redevelopment happening any time soon, such property owners might now struggle to re-sell their highly mortgaged flats at close to the price that they bought them for.

Sources within the development industry say they saw this all coming, and when Westfield say they are “reviewing” the Croydon scheme, it is actually barely disguised code for “dropping” the Croydon scheme.

“They’re letting you down slowly,” said one.

They suggest that Westfield’s  Aussie owners selling out to French firm Unibail-Rodamco last year has shifted the balance away from the scheme – few of the Westfield senior management who were committed to Croydon remain with the company.

“I have no doubt that Westfield could have ridden this all out if they really wanted to,” they said. “They are using the retailing slump and Brexit as an excuse.

“But it’s clear, having dealt with Croydon over 20 years or more, there’s a serious issue with the council, too. Remember the Croydon Arena development which never happened, or Minerva’s proposals that failed to materialise. Croydon are always too eager to swallow the promises of these schemes whole… They’re over-ambitious, and deluded, and they will continue to get the rug pulled out from under them.

“This has been another seriously big dent in Croydon’s reputation.”

Meanwhile, Gavin Barwell, remains in his £140,000 per year job in Downing Street. For how much longer is, of course, uncertain. What is increasingly clear, as the country, under his boss’s leadership, hurtles towards Brexit, is that Barwell won’t be in his job by the time that Westfield finish building their supermall in Croydon.


 

Advertisements

About insidecroydon

News, views and analysis about the people of Croydon, their lives and political times in the diverse and most-populated borough in London. Based in Croydon and edited by Steven Downes. To contact us, please email inside.croydon@btinternet.com
This entry was posted in "Hammersfield", Allders, Business, Centrale, CPO, Croydon Council, Jo Negrini, Planning, Tony Newman, Whitgift Centre and tagged , , , , , , , , , , , , . Bookmark the permalink.

8 Responses to Barwell, Brexit and Croydon’s troubled Westfield dream

  1. farmersboy says:

    Theresa May, like any other idiot, likes to surround herself with idiots. And where better than find them than the Croydon Tories led by Gav. And that’s before we even get on to Chris Philp, dropped into south Croydon as a property developer who won’t have a 16-storey block built in Purley but has a positive opinion on 100 storey flats in central Croydon. Not even his constituency

    Liked by 1 person

  2. derekthrower says:

    In some ways you seemed to have swallowed the pitch yourself here. The attempt to frame Hammerson as a victim in this and those poor other property developers stuck in the middle and poor speculators buying £350,000 flats on a promise of a completed shopping centre. There are more systemic problems which you have not addressed. The dire and unreliable rail links to Croydon which in themselves will not be addressed for at least another decade and even these proposals are just to increase the size of a bottleneck rather than providing a clear long lasting solution. The crumbling road infrastructure and subsequent implications for public transport are also not considered. Secondly the problem with allowing property speculators to control and manage economic development of a major commercial centre. Whatever is being developed and not developed now by this motley crew of short sighted privateers will clearly look obsolete in a decades time and just add to the dire state of central Croydon now.

    Liked by 1 person

    • Don’t disagree with much in your note, but little of it is relevant to a timeline focused on Barwell’s involvement in this shambles, and the Brexit catastrophe we are living through now, which appears to have done for any Westfield centre in Croydon.

      On Hammerson, of course they are not victims. But had they been allowed to get on with the job, as commissioned by the leaseholders, there might actually be a functioning town centre right now. It would have been a ho-hum shopping mall (more Bromley than Stratford, if you like), but at least it would not have been the area of decay Croydon now contends with.

      Barwell and the Whitgift Foundation’s greedy intervention caused an immediate 18-month to two-year delay at the start of the process, by which time the double-dip recession caused by Gideon’s austerity had kicked in and any prospect of a revival for retail was probably gone.

      Liked by 2 people

  3. derekthrower says:

    Barwell is a symptom of our problems and not the cause. The problem is how such a public relations obsessed “Yes Man” without any real credentials of merit is allowed to get in such positions of influence and power. If it wasn’t him it would be another.

    Liked by 1 person

  4. David Hamilton says:

    I do not buy in to the story that Barwell is highly responsible. He simply did what he thought was best for Croydon. As it turns out it has become a very slow moving situation, this cannot be attributed to Barwell who has done everything he can to accommodate Westfield and Hammerson.

    Even though Mr Barwell and I are on opposite sides of the Brexit debate, I still think he tried to do the right thing here. There is no doubt that there is, or at least was a very compelling case to have a Westfield south of the river. WHat has not been so well anticipated has been the growth of online shopping. This is killing off shopping centres. Any talk that Brexit uncertainty is partly to blame is tosh. In or out people will want and need to buy things. This will not change.

    I had heard only last week that Westfield were looking to dramatically dumb down their scheme to centre more on restaurants and more non-shopping ideas. Not that I think this will work to be honest. I think the danger is that we will end up with a few shops, maybe a cinema, probably a few restaurants and a massively increased amount of flats. Something that will be a very slow and disappointing outcome.

    Im very sad about this potential, and despite my ongoing optimism I now fear we will end up with very second rate massively congested blocks of flats.

    Liked by 1 person

    • Barwell did what he thought was best for him, and the Whitgift Foundation. His position with that body when he was an MP was a scandal.

      Are you discounting the over-priced rents on your “investment” properties in the town centre yet?

      Liked by 1 person

    • derekthrower says:

      Well one thing is certain David. Such development plans will massively reduce the value of the freeholds of the flats you have developed in the Town Centre when it is hit with a massive over supply of similar properties. Do you still love Gav now when his incompetent meddling is probably going to hit you right in your pockets.

      Like

  5. Peter Bell says:

    after all this time and after so much effort by so may people we still have a town centre that is incomplete – if all that is reported above is even partially true, i just find a real shame, I wish i had a solution – but i don’t. Fascinating to read but very saddifying. – sigh

    Like

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.