THE takeover of Liskeard's ill-fated Webb's Hotel has not been finalised – the project has stalled on plans to convert the two upper floors to offices.

Now there are fears that unless completion takes place within the next eight days the purchase will collapse.

The partners involved in the current Webb's deal had hoped businesses, such as a call centre, would be able to take over the floors at a rent which would make the cost of extensive renovation viable. However Jamie Brown, one of the partners, has stressed the findings of a report just received from consultants Edmond Symonds and Co, chartered surveyors. They were asked to view the prospects for the building's upstairs floors and how much they would generate per annum in the rental field - as well as view the building itself.

He said he had expected their report on Webb's as a whole to be bleak, but it was 'horrendous'. As regards rental prospects there was little encouragement. He said the partners had hoped for £6-8 per square foot from the 10,000 sq ft office area in rent, but instead were told that, taking in factors such as the building itself and South East Cornwall prices, only £3-4 per sq ft could be hoped for, which would raise about £30,000 per annum. He felt this may have been acceptable if the cost of renovating the top floors was placed at around £250,000, but instead it is likely to be £500,000.

He felt using the bottom floor as a night club remains a viable prospect, with the licences which have been granted to it in place. He said he believed in this aspect 'wholeheartedly'.

Mr Brown added another partner, Nick Barber, is to seek grants for the building, such as from the Regional Development Association, or Europe. He said he understood some may question why public money should be placed into a private enterprise, and as a taxpayer himself sympathised with their view. However, he felt one solution could be the partners running the nightclub privately, while public funds were put into the top floors as a separate entity. He explained: 'Somebody somewhere is going to have to realise the building has negative site value, and someone has got to make up that gap.'

He said as businessmen it would not be sensible, at the end of the day, to take on something which was going to cost them money, and fail to make a profit, overall.

Liskeard deputy mayor, Tony Powell, said he feared collapse of plans unless completion occurred within eight days. He said he was disappointed, but Caradon had responded promptly by writing to the South West Rural Development Agency (SWRDA) to confirm whether their proposal for the direct development of the site still stands. He said: 'This puts back on the agenda the town council's original proposals for an A3 use on the ground floor with managed office space above (including the possibility of its civic offices).