Blackburn agrees land swap with Issa Brothers’ development company

Monte Blackburn will take control of a site off Haslingden Road to develop a 10,000 sq ft retail scheme in exchange for a plot of land in the town centre that could prove useful for the council’s regeneration plans.

Monte Blackburn, which is owned by billionaire brothers Mo and Zubar Issa, has been selected as the preferred bidder for a 1.3-acre site next to the Observatory pub and opposite Royal Blackburn Teaching Hospital, which the council has allocated for retail use in its local plan.

The developer put forward an undisclosed cash offer as well as a land swap proposal. Blackburn with Darwen Council has opted for the latter, which sees it take control of a plot at Penny Street, part of the former Thwaites Brewery in the town centre.

Monte Blackburn acquired the Penny Street site in 2023 from Euro Garages for £475,000. EG had bought it from Thwaites in 2021 for the same price.

“The site provides future development opportunities with strong links to the former Thwaites site which is now in full council ownership,” a report to the council’s executive states.

Maple Grove Developments was the underbidder for the Haslingden Road site but could benefit from the land swap deal.

Late last year the Eric Wright-owned developer entered into a 12-month period of exclusivity to work up proposals for the redevelopment of the former Thwaites brewery.

The site has long been seen as key to the regeneration of the town centre. In 2024, supermarket Morrisons reneged on a deal to relocate there, scuppering a £250m masterplan.

Morrisons was supposed to leave its Railway Road site, which was earmarked for 500 homes. The decision to stay up prompted a rethink for the future of the town centre.