An ambitious film studio development linked to Netflix is set to be officially scrapped – as bosses plan to build more homes on the site instead.
The streaming giant was expected to make Ashford’s abandoned Newtown railway works its UK base as part of a £250m redevelopment of the 12-acre plot.
But in September last year, it was revealed the proposal was deemed economically unviable, with bosses unable to secure an operator.
Now Ashford International Development Company (AIDC) – which is behind the scheme – has decided to drop the studios part of the project as it “can’t ignore financial realities”.
AIDC is 65% owned by Ashford Borough Council (ABC) and 35% by developers Quinn Estates, which secured planning permission for the proposal in 2020.
It was set to include four film studios, 303 flats, an 18-storey hotel, commercial units, rooftop restaurant and 400-space multi-storey car park, along with a facility for Ashford College.
But at last month’s meeting of the ABC’s trade and enterprise board, members “agreed to a departure from a primarily creative industry-led proposal to a predominantly residential scheme”.
This was viewed as the best route to bring the site, which has sat dormant for 30 years, back into use.
The Victorian engine sheds on the site are currently being turned into 303 flats, and work will continue on that part of the project.
But the four film studios due to be built on land opposite will now not go ahead, along with the hotel, restaurant and car park.
And bosses say funding for the college facility will be redistributed by “being delivered through off-site provisions elsewhere in Ashford”.
The decision is still subject to approval from ABC’s cabinet and full council, but the move is not expected to be blocked.
A number of commercial units are still expected to be included in a revised planning application, which is yet to be submitted.
ABC leader Cllr Noel Ovenden (Ind) said: “We can’t ignore the financial realities, particularly around the original plan for film and TV studios.
“Over the past couple of years, elected members have expressed concerns over the proposals and called for a plan b to be explored.
“Times have changed, and the industry has been hit hard in recent years, not least by the writers’ and actors’ strikes and other economic factors, which have disrupted interest in new studio spaces.
“Despite discussions with multiple operators, the current economic conditions have made it difficult to secure a viable operator for this site. We need to be honest about the risks involved.
“This is about being pragmatic so that the Newtown works site doesn’t sit dormant and unloved for another 30 years.”
Cllr Ovenden added the authority must remain focused on delivering a development that restores the town’s heritage, creates affordable housing and is financially viable.
“We owe it to the residents of Ashford to make this scheme work in the best interests of the local community and not become a burden to taxpayers, while we chase an idea that might never happen,” he said.
Recently, work on the five listed buildings on the site, including the abandoned engine sheds and clock tower, has taken place, after AIDC received £14.7 million of Levelling Up funding from the government in 2021.
Cllr Simon Betty (Ash Ind), ABC cabinet member for commercial property and investment, said: “It is regrettable that external market and economic forces have made it extremely difficult to deliver the studio element of this project as originally intended.
“Despite the best efforts, it has proved virtually impossible to attract a credible operator in such challenging conditions without significant additional investment, which is difficult to justify without putting the council at significant risk.
“The plan to now progress with additional residential units instead of studio space will de-risk the site for both the joint venture company and the council.”
Quinn Estates was contacted for comment.
