THE £90m loan from Newport City Council to Friars Walk developer Queensberry Real Estate (QRE) will be paid back, with interest, by December this year.

The loan was made to the property developer to help ensure the 390,000 sq ft retail and leisure development, which opened to the public in November, last year, could go ahead and get completed on time.

The developer is reportedly currently in discussions to refinance the shopping centre after a possible deal to sell it collapsed earlier this year.

Newport City Council chief executive Will Godfrey said: “Under the legal agreement with the council, QRE has to repay the council loan plus interest by December, 2016.”

QRE put the scheme out to market at the end of 2015, but so far, a buyer has not come forward. A possible deal with Canadian investor Talisker collapsed earlier this year.

Mr Godfrey said: “We understand that QRE is continuing negotiations with potential purchasers.”

When approached for a comment, a spokesman for Queensberry Real Estate said: “We have no comment at this time.”

But co-founder of QRE Paul Sargent, speaking recently to top industry publication Property Week, said QRE was now in discussions to refinance the shopping centre.

He told them: “We are right in the midst of refinancing but it has not been finalised yet. We have the ability to extend [the period for debt repayment]. We are not under any three-line whip to repay by the end of the year but we wish to keep our initial obligation.”

He said that yields were now rising and refinancing was a trend among shopping centre owners who wanted to hold on to assets until prices started to rise again.

Friars Walk attracted more than five million shoppers in the first six months after it opened in November, 2015. It has a full-offer Debenhams, New Look, Top Shop, Next, H&M and Tiger among its retail offering. There is also an eight-screen Cineworld cinema and a number of restaurants, including Le Bistrot Pierre, Zizzi, Drago Lounge and Nandos. Friars Walk is also home to an M&S Food Hall and a bowling alley.

QRE is also asset manager of the nearby Kingsway Centre, which has seen an increase in the number of units taken since the opening of Friars Walk. These include a Starbucks and Sainsburys Local.