Railway goods shed set for £7m redevelopment

The goods shed would form part of a wider redevelopment in Fletton Quays

Plans to turn a derelict Victorian railway goods shed into a £7m food and drinks hall have been discussed by councillors.

Peterborough City Council has proposed selling the historic building for £250,000 plus VAT and authorising £1.9m of grant funding to developer Farholt Goods Shed Limited.

The council bought the freehold for the same price in February 2024 and plans to sell it with a stipulation it can be used principally as a food hall with offices and workspaces.

Nick Thulbourn, Labour cabinet member for growth and regeneration, said: "We're excited to put forward our proposals for the goods shed."

Thulbourn said the building had the potential to be a "thriving destination" for people in Peterborough.

"If agreed, these exciting plans will mean people will be able to enjoy food and drink from a host of unique and independent street food vendors in one location, in a large communal space."

On top of the city council grant, Farholt plans to fund the remaining construction costs using institutional investors and other sources.

A report being presented to councillors on Tuesday said the authority had put measures in place to protect its investment, such as a drawdown process when key construction milestones are completed.

It forms part of a project known as The Vine, which aims to use £13m of Towns Fund money to create a new library and cultural hub in the city.

The council originally wanted to use the former TK Maxx building in Bridge Street for the project but decided this was unviable.

The goods shed fits in with plans to redevelop the Fletton Quays area of Peterborough, which overlooks the River Nene.

It is already home to luxury apartments, new council offices and the HM Passport Office, but there are also plans to open a currently unbuilt Hilton Hotel and a new footbridge.

Contracts are expected to be exchanged in January, followed by a planning submission in June.

The initial plan is for construction to start in February 2026 and be finished a year later.