Peterborough City Council has lost £2 million of public money after selling a former TK Maxx store in the city centre for half of its original purchase price.
Council leaders confirmed in March 2026 that the four-storey building at 62-68 Bridge Street had been sold for around £2 million. The property had been bought in December 2020 for £4,164,346—with £4 million of that paid using a Towns Fund grant from the Government—to create a cultural hub called The Vine. However, the council abandoned those plans in 2023 after refurbishment costs were estimated at nearly £11 million, deeming the project unviable.
The council received six bids for the property before selecting MJS Investments (March) Ltd as the preferred buyer. The developer, based in March, Cambridgeshire, plans to demolish the building and replace it with a two-storey development of apartments and commercial units. The sale was approved by the council’s cabinet in December 2025 and completed in March 2026.
Labour MP Andrew Pakes has criticised the transaction, calling it ‘one of the biggest scandals Peterborough has seen’ and an ‘ill-thought-out vanity project.’ He compared it to another troubled council project, the stalled Hilton Hotel development. Pakes stated, ‘They used £4 million from the Towns Fund to pay through the nose for a building that wasn’t suitable for the plans.’
It remains unclear whether the Government will require the £2 million loss to be repaid. The sale proceeds will return to the Towns Fund, which was part of a £22.9 million regeneration programme for Peterborough. Councillor Mohammed Farooq, the council’s deputy leader and cabinet member for growth and regeneration, attributed the loss to ‘significant market changes, particularly post-COVID impacts on town centres.’
The original plan to convert the building into The Vine community hub was scrapped after costs spiralled. The project is now being delivered across three alternative sites: the Central Library, Peterscourt in City Road, and the Victorian Goods Shed at Fletton Quays. The council is led by a Labour coalition under Councillor Shabina Qayyum, and the sale marks another step in managing ongoing financial challenges, including a £500 million debt.
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