NEWPORT’S City Council’s loan will be repaid in full after Friars Walk is sold, the council leader has said.

Cllr Debbie Wilcox’s announcement comes after Property Week reported that developer Queensberry had been set to sell the mall to Canadian property management firm Talisker in June for around £110m, but that a deal has now been struck at a much lower sum, believed to be closer to £90m.

The original deal for the 390,000 sq ft shopping centre fell through after the EU referendum, although the reason for the breakdown in negotiations was not thought to be related to Brexit.

Cllr Wilcox said that Newport City Council and Queensberry are in the “advanced stages” of negotiation for the sale of Friars Walk with a “committed” private sector investor.

She said: “Since its opening in November 2015, the council has been clear it wanted the development sold and the loan repaid in full by the end of this year. Following constant dialogue with Queensberry, the current deal is set to complete early in the New Year.

“The final sale price and exact financial details of the negotiations are commercially sensitive.

“However, despite the significant effect of Brexit on investments and global caution in the financial markets, the deal on the table will ensure the council’s loan is repaid in full.”

She said that Friars Walk is now 95 per cent let just 12 months after opening.

“This guarantees an attractive and fair market value,” she said. “This scale of letting is a considerable achievement, and new retailers continue to come on board as we push towards full capacity.

“Long before Brexit, this council recognised the importance of the project and has delivered 100 per cent on its promises – Friars Walk has changed the look and feel of the city.

“Newport is now a credible destination for families, for businesses and for visitors.”

Queensberry have been asked to provide a comment and declined to do so.

The long-awaited shopping centre opened on November 11 last year and sees thousands of visitors coming to shop there every week.

It was one of just three shopping centres to open in the UK in 2015 and has shops, food outlets and entertainment.