Beatties owner seeks crunch meeting with mayor's team to secure funding for Victoria Street development
The former department store building on Victoria Street, purchased by the Eden property group two years ago, faces a funding crisis that threatens its transformation into a mixed-use leisure, retail, and residential hub. Director Hitesh Raghwani is now seeking financial support from the West Midlands Combined Authority at a critical meeting on Friday.
This 100-year-old landmark, adorned with a striking art deco facade, has been vacant for seven years after the retailer's acquisition by Mike Ashley's Sports Direct group. Rebranded Frasers, the department store relocated to smaller premises in the Mander Centre.
The building was acquired by SSYS Beatties Ltd, a company formed by lawyer Pragnesh Modhwadia, with plans to convert it into flats. However, the company faced financial troubles, entering receivership in 2023 after defaulting on a loan. Mr. Raghwani's Eden group purchased the building from the receiver for £6 million in February 2024, committing to the redevelopment.
Mr. Modhwadia, now awaiting trial for alleged £64 million fraud at his former law firm, Axion Ince, faces legal challenges. The Eden group submitted revised plans for a £70 million redevelopment, envisioning 306 apartments on the upper floors and retaining the ground floor for commercial use, including cafes, restaurants, and shops.
A crescent-shaped recess, a unique feature of the building, would be restored by removing a modern foyer extension.
Despite the ambitious plans, Mr. Raghwani acknowledges the need for support from the West Midlands Combined Authority, led by Mayor Richard Parker, to make the project financially viable. He states, 'We are about to put in an application to the West Midlands Combined Authority for some gap funding.'
However, local businessman Henry Carver has sparked controversy by advocating for the building's demolition, claiming it is no longer suitable for redevelopment and has become an eyesore. The locally listed building's fate hangs in the balance, leaving the community divided on its future.
