Castle Dene’s incoming owner eyes regeneration potential

Praxis has sold the 275,000 sq ft shopping centre in Peterlee town centre to private investor Paul Staley for an undisclosed sum.

Castle Dene is an established retail destination serving the town and surrounding East Durham communities. Its occupiers include Asda, B&M, Boots, Specsavers, New Look, Argos, Sports Direct and Card Factory, alongside a wider mix of local retailers and services.

Barker Proudlove has been appointed to handle the centre’s marketing and commercial lettings, with Savills appointed as managing agent. The agents will work to attract new retailers, leisure operators and service providers, while supporting the businesses already trading at the centre.

The asset was marketed for sale at auction by Allsop in February with a gross annual income of £1.2m and a guide price of £4m.

Paul Staley: “Castle Dene is an important part of Peterlee and has significant potential. Our focus is on supporting existing occupiers, attracting new businesses and working collaboratively with Durham County Council and the local community to help drive the centre’s future success.”

Discussions are already under way with a number of potential retail occupiers. The new ownership also intends to engage with Durham County Council to explore how Castle Dene can contribute to the wider regeneration and future success of Peterlee and East Durham.

Steve Henderson, director of Barker Proudlove, said: “We are absolutely delighted to have the opportunity to work on the shopping centre, which provides great leasing and asset management opportunities to enhance the town centre, bringing in new brands and creating space for local and regional operators.”

Cllr Karen Allison, Durham County Council’s Cabinet member for leisure, tourism, regeneration and high street, said: “We were pleased to hear that the shopping centre has been sold, and we look forward to working with a new owner who shares our ambition to unlock its full potential. This is an exciting opportunity to build on the town centre’s strengths, support existing businesses and attractions, and encourage new investment and activity that will help Peterlee thrive for years to come.

“The strong engagement we have seen through the development of the Strategic Place Plan, and the Pride in Place investment plan, demonstrates how much local people care about the future of the town centre. Their enthusiasm and commitment provide a clear dedication to positive change.”

The centre provides 275,715 sq ft of retail and leisure accommodation, with 130 stores, including 779 car parking spaces and an annual footfall of 6.5 million.