£4.8m price tag for council purchase of Blackpool Marks and Spencer building

Blackpool Council has borrowed the money for the acquisition, but hopes to recoup at least £3m back in rent during the remaining four year lease on the building in Church Street.

M&S is currently closing many of its high street stores around the country to make savings of £300m, with 67 closures announced as part of the most recent tranche.

The current lease on the Blackpool M&S is due to end in March 2027, and owning the store will enable the council to renegotiate the terms.

The acquisition comes three years after the council bought the Houndshill Centre for £48m, with Frasers announced last week as new tenants for the empty Debenhams store.

A report to the council's executive says the M&S building is "a strategic regeneration asset in the heart of the town centre containing a high profile retailer."

Ownership will enable the council to "utilise its influence and control of the asset to aim to secure the best possible future for the asset including retaining a high profile retailer in the town centre."

It also provides "another asset in close proximity to other councilowned developments as part of the council’s growing investment portfolio, to strengthen further the regeneration of Blackpool town centre."

The council also owns Abingdon Street Market which is currently being refurbished as part of a £3.6m scheme funded by the government's Getting Building Fund.

The M&S store was previously one of 17 stores owned by CF Sparks Limited which was set to sell the whole portfolio to another bidder, but that deal fell through.

After being made aware of the premises becoming available again, the council stepped in to make the purchase after a survey showed it to be in "reasonable condition."

Coun Maxine Callow, chairman of the council's Scrutiny Leadership Board, said she welcomed the acquisition providing it added up financially.

She said: "I was very surprised when I saw the council had bought it in today's climate as they are taking on more debt.

"But it is important to keep M&S in Blackpool, and if we are good landlords then hopefully we can do that."