The sale of a rundown former shopping arcade in Pollokshaws to Glasgow Housing Association for an initial fee of £210,000 has been given the go-ahead. 

Buildings on the Shawbridge Street site will be demolished to make way for 70 flats, which will be made available at “mid-market” rent.

Four of the units will be turned into office space for the housing association, which is part of the Wheatley Group.

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Councillors agreed the deal could progress at a meeting of the contracts and property committee this week.

Lindsay Lauder, Wheatley Group’s director of development and regeneration, said: “We’re developing exciting plans for new, affordable homes in the Pollokshaws area, as well as office space.

“If approved, the development will transform the unoccupied retail space into high-quality energy-efficient homes, with works anticipated to start this year.

“We’ll keep the local community fully involved as plans move forward.”

One business, a William Hill, remains in the shopping centre on a month to month lease and a notice to quit has been served.

The housing association is “keen to press on” with knocking down the buildings, a council officer said, and consent has been granted to start demolition works in advance of the sale.

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A council report added: “While it would not be normal practice to provide a licence for works of this nature prior to the conclusion of a disposal, the licence will enable the purchaser to press on with their plans for redevelopment of the site and allow them to adhere to their strict development time scales.”

Council bosses agreed in April 2020 that 10 sites, including the arcade in Pollokshaws, could be disposed of to registered social landlords.

The gross cost for the sale of the land is £1.05 million, with the first instalment of £210,000 payable on the date of entry, which is not later than March 31.

A second instalment will be calculated from the gross price minus the first payment and any abnormal costs, such as those related to circumstances outside the developer’s control.

The council officer added: “For the avoidance of doubt I would ask the committee to note that the purchase price excludes abnormal costs and the cost of demolition.”