One of Kent’s busiest high streets has suffered a major blow as the company behind a long-awaited £30m redevelopment has been placed into administration.
Setha Canterbury Ltd is leading plans to convert the city’s former Nasons department store into a Brighton Lanes-style shopping arcade with a food and drink hall, public open space and 66 flats.
But the firm is now under the control of administrators after defaulting on a loan to buy the land and develop the plan. The site was also put up for sale.
But company boss Manuel Alsoni still hopes to save his vision by refinancing debt with a new lender and pushing ahead with a project known as Biggleston Yard.
The eye-catching designs were first unveiled in 2019 – a year after the long-running family store closed its doors citing “brutal trading conditions”.
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But like many proposed new developments in east Kent, the project was initially stalled by Natural England, which blocked residential plans due to nitrates and phosphates from sewage polluting Stodmarsh Nature Reserve in Canterbury.
However, Setha eventually received planning permission in 2022 after proposing a “solution” to the problem, which included installing an on-site sewage pre-treatment plant and daily waste collection.
But Mr Alsoni says the cost of the plant, as well as the high utility charges that would have to be imposed on future residents, have since made the option unviable.
He is now letting his firm wait for a wider – and cheaper – solution to emerge to appease Natural England while he continues to seek new financial backers.
According to Companies House, Setha Canterbury Ltd was placed into administration in April following a filing by a creditor, TAB London Ltd, which is seeking to recover millions of pounds.
But Mr Alsoni believes his project is not dead in the water.
“We believe our plan is still achievable and we are working hard to try to refinance the debt and pay off the current lender,” he said.
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“The fact is it will be difficult to sell because any new owner will have exactly the same problems we have and securing retail investment is increasingly difficult.
“To be honest, it was a nightmare that we couldn’t have foreseen when we took on the project. But I don’t regret it because we still hope to redevelop this historic site as a flagship project and our plans have been widely praised.
“If we are able to refinance, our aim is to start demolishing part of the site as soon as possible, as an extensive archaeological survey will be required before construction work can begin.”
Mr Alsoni also believes that if he can get the scheme off the ground, there could be potential to open up the ground floor of the building as a London Borough Market-style venue in the interim, something he hopes to discuss with the city council.
The larger project would take about two to three years to complete, he said, and would be financed by a development loan, which is common practice for such projects.
Meanwhile, however, the prominent site remains derelict after almost five years of inactivity, with the buildings now an eyesore and regularly invaded by squatters and squatters.
Opposite, the former Debenhams site is planned to be redeveloped into 12 commercial units and 70 apartments.
This project is also on hold by Natural England, but its backers remain on board.
Canterbury City Council says it is continuing to work on the ground to find a solution to the Stodmarsh problem, which is also currently blocking more than 7,000 homes from being built.
Spokesman Leo Whitlock explained: “We recognize how important the redevelopment of the Nasons site is to the health and vitality of the town centre.
“That is why as a local planning authority we have granted planning permission for the project so that it can go ahead once a way is found to protect Stodmarsh Nature Reserve.
“We are working closely with Kent County Council, Ashford Borough Council and a number of other Kent councils to find an answer to this problem and we are pulling out all the stops.
“This includes the possible creation of wetlands or water meadows that could clean the water as it passes through the system, exploring ways to reduce waste water coming from council houses and getting water companies to upgrade their sewage treatment plants as quickly as possible.
“And we are in constant dialogue with government in all its guises – Defra, DLUHC, Natural England, the Environment Agency and Downing Street – to find a way forward.
“Indeed, between us we have secured almost £10m from central government to help us find a catchment-wide response with the ultimate aim of restoring conditions at Stodmarsh.”