£3.3 Million Loan Lifeline: Old Observer Building Debt Deal Stuns Hastings

A multi-million pound loan linked to Hastings’ iconic Old Observer Building has been given a dramatic 20-year extension – sparking fresh debate over the future of one of the town’s most ambitious regeneration projects.

East Sussex County Council leader Keith Glazier signed off the deal on Monday (September 15), agreeing to let Hastings Commons Neighbourhood Ventures Ltd (HCNV) repay its staggering £3.3 million debt over two decades instead of by the looming 2026 deadline.

The move throws a lifeline to the community-led company, which has transformed the once-derelict Cambridge Road landmark into a vibrant hub featuring homes, offices, a performance venue, gym and roof terrace.

But the decision also raises eyebrows. The original loans – worth £3,366,500 in total – came from the now-defunct South East Local Enterprise Partnership, with the understanding they’d be fully repaid in just a few years.

Instead, mounting financial pressures have forced a complete rethink.

A county council report admits HCNV first raised concerns last year, leading to months of behind-closed-doors negotiations.

The outcome: a radical new deal that secures the council a legal charge against the investment, while pushing repayment into the 2040s.

Crucially, the fine details of the repayment plan remain locked away in private papers, exempt from public disclosure.

Council bosses say the arrangement is a “fair compromise” that will eventually recycle the money back into other East Sussex projects.

Labour councillor Godfrey Daniel, whose division includes the building, backed the extension after being briefed by officers – but some residents may be left questioning whether this gamble with public money will truly pay off.