Southampton Toys R Us site office block loan approved

The new office block will incorporate a business lounge off the reception area

Plans to borrow £27m to build an office block on the site of a derelict Toys R Us store have been approved.

The 70,000 sq ft block in Southampton will be part of the first phase of a £150m redevelopment of the unused land in Western Esplanade.

The city council approved the plans, with leader Christopher Hammond describing them as "robust".

Opposition councillors abstained from voting for the proposal, suggesting it risked losing taxpayers' money.

The 70,000 sq ft block will be built on the site of the derelict Toys R Us which closed last year

After the meeting on Wednesday, the Labour Party's Mr Hammond told the Local Democracy Reporting Service: "This investment will give the city an economic and social value return.

"It is incredibly short-sighted for [The Conservatives] not to support us."

Conservative group leader Dan Fitzhenry said his members "don't believe all the financial models have been explored".

He added: "Under the current proposal there's a risk that the taxpayers could be left with a building that does not have enough rental income to cover its cost".

He also said he would "be minded to support the plan" if he was sure the office's potential tenants were committed to moving in.

The council has said it hopes to build 275 flats, restaurants and shops in future phases of its redevelopment of the Toys R Us site, which has been empty since the business collapsed last year.