Administrators called in to property firm De Stegano Property Group Limited which managers former East Street site earmarked for Morrisons

Administrators have been appointed to a property firm which manages a large site in Southampton earmarked for a huge Morrisons supermarket.

The De Stefano Property Group Limited and certain subsidiaries, which has a portfolio compromising of the two-acre site in East Street, has been placed into administration with Jim Tucker and Ed Boyle, from KPMG, appointed as joint administrators.

It was hoped the new twostorey, 60,000sq ft store would revolutionise that part of the city and create 400 jobs in the process.

Now doubt surrounds the future of the development, which was considered a key part of Southampton City Council’s city masterplan.

The site also includes the partly vacant office block Capital House.

As reported by the Daily Echo, the site is the former home to the East Street Shopping Centre that was built in the 1970s.

The centre was a flop and shoppers shunned the stores for the high street.

Developer Arcadian Estates was given permission to demolish the building to make way for the supermarket and a car park for more than 280 cars.

Following the demolition, Arcadian Estates chairman John De Stefano said the firm was “looking forward to delivering this exciting redevelopment for the city.”

As part of the development, the East Street pedestrian link between St Mary’s and the city centre was set to be restored.

Additionally, the De Stefano Property Group Limited also has The Brooks Shopping Centre in Winchester as part of its portfolio.

Jim Tucker, partner and joint administrator at KPMG, said: “In recent years, the value of the portfolio in relation to the security has fallen such that the appointment of administrators was necessary.

“We will be working with the asset managers of the properties and the KPMG Real Estate team to improve the rental income across the portfolio so as to maximise its value. We envisage bringing the assets to the market in the short to medium term.”

Morrisons was unable to comment when contacted by the Daily Echo.

A spokesman for KPMG confirmed it has also been appointed administrators of Arcadian Estates, which owns the East Street site.

The Daily Echo attempted to contact Arcadian Estates for a response before it went to press but was directed to contact development consultants Hawes Price, which was unavailable for comment.