PROMISING plans have been unveiled for a hotel, gym and new restaurants after Grays Shopping Centre was purchased for £20.2 million.

New River Retail has acquired the shopping centre, and has immediately detailed ambitious plans for the redevelopment of the area.

The firm, which owns more than 30 shopping centres across the UK, and is behind the new retail park on Canvey, is aiming for a mix of retail and leisure, as well as up to 300 homes, on the shopping centre site, aiming to work closely with Thurrock Council in its redevelopment of Grays.

Allan Lockhart, chief executive, said: “Grays Shopping Centre is a community asset with excellent asset management and development potential, acquired at a very attractive entry price, which is well below previously traded values and the residential residual value of the asset.

“The site is central to ambitious town centre redevelopment plans put forward by the local authority and we look forward to working closely with them to deliver the right mix of residential, retail and leisure for the local community, while providing attractive and sustainable returns for our shareholders.

“This strategic acquisition means that we have invested over £150 million so far in 2018 across our core sectors of community shopping centres, retail parks and community pubs, at an attractive blended initial yield of 12 per cent, demonstrating our disciplined approach to capital allocation.”

The shopping centre is currently home to a number of retailers, including Wilkinson’s, Poundland, Iceland and Peacocks. New River has identified a number of exciting developments, including a hotel, restaurants, and homes.

A statement read: “New River has already identified a number of value creating opportunities at the asset, to meet demand for a budget hotel, budget gym and discount food retailer, and to deliver up to 300 much-needed residential units to support the town’s growing population.

“These plans are in line with the Grays town centre framework, produced by Thurrock Council, and NewRiver will work closely with them in redeveloping the site, while continuing to receive income throughout the planning stage.”