When a “funky” Shoreditch-style container village opened on Lodge Lane in Toxteth in June 2021, the development was seen as a landmark investment in the L8 community and the first of its kind in the city.
Now a number of current and former tenants who took up plots in the village say the development has “left a sour taste” after its initial promise has failed to materialise. Rents of over £1,000 a month have been called into question, with tenants citing issues with poorly maintained toilets, failing Wi-Fi and large marketing screens that are permanently switched off.
A lack of care for the grounds of the development was also highlighted by some, with areas of paving already deteriorating in places. A year on from opening, as few as three out of the 14 units could be occupied in the coming weeks, with the development largely shuttered up toward the top end of a bustling Lodge Lane.
READ MORE: Shipping container village that's 'changing the face of Lodge Lane'
The developers said administrative difficulties with Liverpool City Council meant the scheme could not collect full rents in its first year and was therefore unable to invest to deliver on the full potential of the project. CanCo claims that it took 18 months for the council to complete the lease purchase despite the project being ready to launch last spring. A spokesperson for Liverpool City Council said the timescales involved are "not unusual for the negotiation and obtainment of relevant information for development schemes such as this."
'A face lift for the area'
Built by London-based developers CanCo, the shipping containers converted into retail units aimed to provide opportunities for new, local businesses to grow without the normal pressures and costs of setting up on the high-street. The large marketing screens were installed to help support the business within the village. The development was promised set to provide a more local and independent choice for those living and shopping in the area.
One of those who jumped at the chance to run his own unit was Abdul Ahmed, but his hopes have been dented by the experience. “It has demolished my reputation as a business,” he told the ECHO, having seen his Lodge Gifts and Accessories business close a few months ago, adding: “Sometimes I could stay open all day and didn’t make a penny.”
In December, Mr Ahmed was photographed smiling in his shop by the ECHO, his walls decked out with a wide array of colourful products. "It's like a face lift for the area,” Mr Ahmed, who has lived in the area since 2003, told the ECHO back then, “it does change the whole set up of Lodge Lane, as in a new idea coming in."
Today things are very different. A pale grey shutter is pulled down tightly to the floor, along with a number of other units in the development. Mr Ahmed says his experience of the development has left a “sour taste” which is echoed by other current and former tenants. He said a lack of footfall and no marketing support was one of main reasons he could not sustain his business.
All tenants the ECHO spoke to pointed to the high rents to set up their businesses in the containers. Mr Ahmed said he was asked to pay £800 a month for his unit.
Fozia Choudhry, who ran Fozia’s Kashmiri Street kitchen at the site until a week ago, told the ECHO her rent was over £1,000 a month, despite the development being billed as “low cost rental model” specifically to support emerging local businesses. She said the scheme was "oversold" when compared to its initial plans, with many tenants underscoring how full commercial units along Lodge Lane high street were larger, had storage and were considerably cheaper than the containers.
Some of the tenants felt the development was “cashing in” on the community currency but not offering adequate provision to see their businesses develop. Both Mr Ahmed and Ms Choudhry said the rent fees introduced from July 2022 were more than was originally agreed after a year of free rent came to an end. Some tenants said they were now paying £150 more than they had originally agreed to.
Lodge Stone Estates, managing the development on behalf of CanCo, said this was a “small increase” due to increased overheads as a result of rising utility rates, which it said are included in the rent. The company also stated that the addition of VAT to the rents has added to the price rise.
In a letter seen by the ECHO, tenants were approached about rent increases to be introduced from July 2022. The letter stated that agreements must be signed and paid by July 15, forming a six month initial agreement before becoming a monthly rolling agreement.
This meant that tenants in the more expensive units would have to commit to £6,000 worth of rent when trying to establish their business. It was claimed that any tenants that “refused to sign” would have the locks changed on their units on July 30.
CanCO has confirmed to the ECHO that normal commercial units were priced at £577 and food units at £850 per month, excluding VAT. It said the full package includes cleaning, rubbish removal, pest control and drain unblocked. Lodge Stone also pointed out that two tenants had refused to sign an agreement and were operating their units without paying.
'Plan to help the Toxteth economy'
Plans for the development were first outlined in 2015 with work starting in late 2019. The land for the development was purchased for £144,240 from the council, according to local authority reports, which stated: “Canco Limited will be investing in Liverpool for the first time and their low cost rent model for commercial business will provide local residents and entrepreneurs the opportunity to start new businesses.”
Ahead of the development opening, then Lord Mayor Anna Rothery, who is a local councillor for the Princes Park ward, said it was an ”exciting scheme that provides space for local people to try out new ideas or launch their new business.” She added: “By giving more people reasons to shop locally it can only help the Toxteth economy.”
The development was originally managed by Yas Alawi of Lodge Lane-based New Era Property. However Lodge Stone Estates took over the management in January after Mr Alwai’s involvement ended without any notice, according to CanCo. Mr Alwai was approached for comment by the ECHO.
The development opened for business in June 2021 but trader Abdul Ahmed said there were “problems from the beginning" in how it was executed. While the rents were said to be higher than that of the local high-street, “promises” were made about helping market each business in order to grow their profile.
However the marketing screens, tenants claim, have never worked and remain permanently switched off. Tenants claim they were promised free Wi-Fi but this too has not been set up.
One tenant pointed out that the light at the front of their shop has not worked since they moved into the container. Lodge Stone Estates said it has carried out a range of work on the site since it took over management and it continuing to address any issues raised.
The condition of the tenant’s toilets were also a point of concern. When shown to the ECHO, the unisex toilets were covered by a metal shutter towards the rear of the development near to the bin store, with chewing gum strewn across the floor. It was claimed that there have been problems with rats and the general care was below par, with female tenants choosing instead to use the toilets of local businesses.
Lodge Stone said a cleaner visits the site once a week and the toilets are included in their work. It said it could not police the actions of the general public if they were given access by the tenants.
'It hasn't come to fruition'
Fozia Choudhy, owner of Fozia’s Kashmiri Kitchen, finished her last day business at the site last Sunday. She said she did not want to leave the development, despite branching out to a second site at Picton Road.
She told the ECHO: “I’m grateful, this put me on the map but didn't want to leave the [Lodge Lane] area, but the rents were too high.
“It looks good and sounds good. But it hasn't come to fruition. People can't get their heads around the rent. But there’s interest in the site which is a shame.”
One tenant still operating at the development, who wished to remain anonymous, questioned why a community driven development would have rents upwards of £1,000 a month. They said: “The developers aren't going to be making that kind of money from this street. It's not realistic.”
The project manager on behalf of CanCo said the developers have been trying to “do the best for the community”. They added: “But we’re not a charity and ultimately the development has to stand on its own two feet. It needs stabilising so we can invest back.
“It is meant to be a social project to give back to new businesses. A key part of it was being able to take this investment in deprived areas in the UK.”
A tenant still trading from their unit told the ECHO they are planning to stay for now but hopes things will change. They said they were “sad” about the current situation but that the rent is “too high.”
Another tenant is running a catering business still operating from the site, and like others, is soon to be moving to another, cheaper commercial unit in the local area. They told the ECHO: “The rent is a killer. But lots of the businesses failed even before the rents were introduced. What does that say about how appealing this area is?”
The tenant, who wished to remain anonymous, points at the lack of footfall and lack of appeal in the public square in front of the units, which has no seating area, with its grass and flowerbeds not always tidied in months that have gone by.
They added: “It’s miserable to look at. I’m grateful for the first year’s free rent, but most of the customers I brought in myself. Sometimes I don't make £50 a day, so it comes out of my own pocket to pay staff.”
The tenant questioned how the rents could be justified with no marketing support and aspects of the development not being kept up to standard.
'We’re not going to walk away'
Lodge Stone said that it is the responsibility of the tenants to keep the public spaces clean and tidy. Extra cleaning of the public area around the development is not inclusive of the rent. The management company added the success of businesses like Fozia’s Kashmiri Street Food, L8 Barber and Go Taco, who’ve all opened new premises, is proof of the success of the scheme. They added that their departure is a “success story and not a blow to the initiative.”
Lodge Stone Estates added that it is rare for commercial premises to allow tenants to take over for as little as six months. A spokesperson for the company added: “We want the community to prosper and succeed however CanCo is not funded by government, the council or any grants but by private individuals who along with offering great opportunities to the community have to think about the ever increasing overheads.”
The project manager on behalf of CanCo agreed there were issues that needed rectifying and that it was important that the development found “stable footing” in order to fully deliver its vision. The project manager said CanCo was “fully committed” to the project and wanted to succeed in providing a development with community and social value at its core.
But the developers pointed towards problems with Liverpool City Council for one of the reasons why they were not able to address the problems at the site sooner. CanCo claims that it took the local authority 18 months to complete the purchase of the lease after the site was ready to open in April 2021.
Therefore the developer could not collect rents and tenants were given a year free before they were introduced after the sale was completed. The developer said thousands of pounds were spent on legal action in order to get the council to complete the purchase.
The project manager said their vision for the development, such as the marketing screens which he hoped could also feature the work of local filmmakers, required funding from monthly rents, but could not be carried out due to the delay on the council’s side. He and Lodge Stone said that these issues would be addressed once the scheme has been “stabilised.”
They added: “We need time for it to get to its feet and press ahead. We're currently working with Lodge Stone to get the right balance in terms of rents. We desperately need to get it up and running and for it to succeed. We still have really high hopes for the development and want it to be a place for the community with social value.
“We're dealing with the issues and looking to take the development forward. We’re not going to walk away.”
After being approached by the ECHO for this article, Lodge Stone Estates confirmed that it and CanCo have decided to restructure the rents at a lower cost. They added that they will share final figures early next week and “any current and potential occupants/tenants will be informed accordingly.”
Speaking about the scheme this week, Cllr Anna Rothery said she stands by her original hopes for the the project and wants to see it get back on track and not become a negative example for investment in the Toxteth community.
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