A FORMER Saddleworth mill which has planning permission to be converted into 38 apartments will be auctioned off with an asking price of below £1 million.
Knoll Mill, on Wellington Road in Greenfield – next to the Tesco supermarket, will go under the hammer on Tuesday, July 23.
And the derelict structure, which can already have accommodation on four floors, is likely to prove attractive to developers.
For auctioneers Savills has set a guide price of £875,000.
However, an Oldham Council report from when planning permission that would see two further storeys added was granted in 2022, says costs of retaining the structure would be ‘substantial.’
And whoever does develop the area faces paying section 106 money to the authority to be spent on improvements elsewhere.
The existing building is the sole surviving structure of what was formerly a mid-19th century industrial complex known as Wellington Mills.
A complex was first built in 1852 for cotton spinners Shaw, Son and Lees. From 1941, fabric weaver B Kershaw began operations there and in the wartime years the mill’s engineering section produced engine parts for bombers before becoming a naval store and then a store for the British Wool Board.
However, it has stood vacant since they closed in the 1990s and The Oldham Mills Strategy categorises the building as a ‘medium priority’ mill in poor condition, with medium housing potential and low employment potential.
And the report into the application by Michael Carney of Saddleworth Prestige Homes Ltd also highlights a narrow profit margin, stating: “Knoll Mill is in poor condition and the cost of retaining and refurbishing the mill will be substantial.
“Clearly the development cost needs to be balanced with potential section 106 contributions and provision for affordable housing and open space etc.
“The applicant submitted an Economic Viability Study which concludes that the scheme is only just viable without section 106 contributions.
“The Economic Viability Study has been reviewed independently by CPV Viability on the council’s behalf. When they applied the Local Plan Policy requirements for affordable housing, open space etc, this resulted in a financial loss to the developer.
“CPV have also concluded that even without any section 106 contributions, the scheme will only return a developer profit equivalent to 9.25 per cent, which is below the minimum requirement of 15 per cent on revenue.
“A reasonable developer profit is considered to be between 15-20 per cent.”
Part of the plan granted saw two extra storeys added to the building, with a lift tower installed, even though a conservation officer did not support it from a heritage standpoint.
The decision report also stated some window openings will need to be increased in size to accommodate residential units and let adequate light into the building.
The basement level would contain 20 car parking spaces, including two disabled spaces and access to the proposed lift.
Its ground floor will contain 10 external parking spaces and four additional spaces that will be roofed over.
