Tesco's secret property developer repeatedly pushed for superstore

Published on Thursday 2 September 2010 15:51

THE front company that secretly bought a rundown town centre on behalf of Tesco repeatedly tried to get permission to create a superstore on the land, documents obtained by The Scotsman have revealed.

Balmore Properties, which acquired Linwood town centre for 1.7 million in 2001 and operated it for six years without admitting it was working on behalf of Tesco, issued a number of informal proposals for a large supermarket - despite being told repeatedly by Renfrewshire Council that it favoured a development with a mix of large and small retailers.

Tesco this week admitted it used Balmore, headed by the Edinburgh-based property entrepreneur Dallas Rhodes, as a cover to buy up the shopping precinct, before acquiring it in 2007.

Locals claimed that Balmore ran the town centre down to near-dereliction before Tesco stepped in to buy the site formally and unveil a plan for a new supermarket, library, health centre and community hall.

The development, dubbed Scotland's first "Tesco Town", was welcomed by residents desperate for investment. But a planning application relating to the Tesco development, later granted for the site, showed even Renfrewshire Council was unaware of the supermarket's previous links to Linwood. Under the "History" heading in the planning document, dated 24 April, 2008, the council states "none".

"It was like they (Balmore Properties] wouldn't take no for an answer," said Linwood councillor Anne Hall, a former member of the planning committee. "It was clear they wanted a single superstore. I always had a feeling that there was someone else behind it, but I was never able to prove it."

Area MSP Wendy Alexander said she believed Tesco had hoped Balmore would ultimately be able to gain permission for a superstore before revealing Tesco's involvement - but had been forced to play its hand in 2007 when residents began to petition the council to issue a compulsory purchase order on the land as part of their "Boot out Balmore" campaign.

"I believe they never envisaged that we would consider a compulsory purchase order," she said."

A letter to Ms Alexander from Renfrewshire Council, dated 11 February, 2003, reports Balmore had made a number of approaches to build a single supermarket - but without mentioning any involvement from a specific retail chain.

The council added: "Clearly Balmore are working to their own agenda and timetable and are holding out for a large retail unit (to obtain the greatest financial returns) which use and scale of redevelopment is not supported by the Council, and they have been advised by this on a number of occasions."

Three years later, further correspondence between the council and Ms Alexander revealed that Balmore had made further applications to create a superstore.

A Renfrewshire Council spokeswoman said: "The council has vigorously pursued the regeneration of Linwood town centre over the years and continues to do so."

Tesco refused to comment.

The Scotsman was unable to contact Balmore Properties or Mr Rhodes.