Major Plymouth Development Grinds to a Halt
Ambitious plans to transform Plymouth's historic waterfront with a striking new skyscraper have been officially put on hold. The developer, Sutton Harbour Group Plc (SHG), has confirmed it is suspending all work on the proposed £60 million Sugar Quay project, citing a severe lack of buyer interest driven by national and regional economic pressures.
Economic Reality Halts Regeneration Vision
In a stark statement to investors during its annual meeting, the AIM-listed company revealed that appetite for both luxury residential flats and commercial units has dried up. The board has consequently decided to pause all expenditure on new developments until market conditions recover and the future appears more certain.
This decision directly impacts the vacant site at Sutton Harbour, where SHG had permission to build up to 170 flats. Crucially, the planning permission for the 21-storey tower expired in June 2025, having required construction to begin within three years of its approval in June 2022—a deadline that was not met.
Financial Setbacks and Interim Solutions
The economic challenges facing the project are substantial. In September, SHG reported losses of nearly £2 million and disclosed that the Sugar Quay site had seen its carrying value written down by £9.388 million following the lapse of its planning permission.
The company had been exploring a less expensive, lower-density scheme for which it could more easily secure funding, with a pre-application planned for this year. However, even that alternative has now been temporarily shelved.
To mitigate costs, SHG is now actively seeking interim uses for its vacant sites at Sutton Harbour. The firm has instructed retained property agents to market the availability of the land, hoping to generate some revenue while awaiting a market recovery.
This is not the first financial headache for SHG at Sutton Harbour. Last year, the company reported a £2.629 million loss on its nine-storey Harbour Arch Quay development, despite all apartments being sold, due to construction setbacks and escalating costs.
A Vision for Plymouth's Waterfront Deferred
The proposed Sugar Quay development was designed to be a landmark 'sentinel building' for the harbour. The 21-storey structure would have stood just three storeys shorter than the city's Beckley Point skyscraper.
The vision extended beyond residential space, promising:
- Substantial leisure and retail outlets
- New eateries creating a vibrant public space
- Enhanced public areas with expansive open spaces replacing narrow pathways
- Panoramic views westward towards the marina, the Barbican, and the Hoe
The project had received unanimous backing from Plymouth City Council's planning committee in April 2022, with a Section 106 legal agreement successfully concluded two months later. Construction was originally scheduled to begin two years ago but was postponed due to economic circumstances and the time required to sell the existing Harbour Arch Quay apartments.
With the project now in indefinite suspension, the future of this key regeneration site on Plymouth's historic waterfront remains uncertain, a clear casualty of the challenging economic climate affecting development ambitions across the South West.
