NEWPORT City Council’s cabinet confirmed they will consider re-financing the loan that made Friars Walk shopping centre possible if a planned sale to a Canadian company falls through.

A report, presented yesterday to cabinet members, outlined a preferred option to sell the centre but also explained the possibility a fall-back position if the sale isn’t completed.

Developer Queensberry Real Estate, which was handed a £90 million loan by the council to complete the 390,000 sq ft retail and leisure development, has been speaking with potential buyers for the centre, which opened in November last year. Although talks with Canadian property management firm Talisker reportedly fell through following the EU referendum, negotiations are now said to be back on, albeit at a reduced price of £90 million, down from the previous offer of £110 million.

Chief executive of Newport City Council, Will Godfrey, confirmed the refinancing of the loan that made Friars Walk possible has always been the default position if a sale is not achieved within the agreed timescale.

Speaking at the cabinet meeting he said: “This (report) is just informing people of the position we’re now in so there is total understanding in the public domain.”

The Friars Walk report was previously discussed at a meeting in October 2016 which was held behind closed doors due to the “commercial sensitivity of the details of the sale,” Newport council has confirmed.

The refinancing option is also based on the historic loan amount, and not the current or future open market value of the scheme.

Opposition leader, Cllr Matthew Evans, speaking after the meeting, stated members of the public should have been able to see the report in October when it was discussed.

A council statement added the refinancing option is a “viable alternative to a sale” as the council could utilise secured rental income from the Friars Walk tenants to finance the new loan until the scheme could be sold. This option requires approval by a meeting of full council.

A statement, published on Newport City Council’s website, stated a complete deal on the Friars Walk sale is expected in early 2017. To view the report, visit: newport.gov.uk.