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06 Sept 2025

Derry’s Lisnagelvin leisure centre site back on the market

Sale to prospective buyer falls through

Derry’s Lisnagelvin leisure centre site back on the market

Derry’s Lisnagelvin leisure centre site back on the market.

The former Lisnagelvin leisure centre site in Derry’s Waterside could be back on the market at the end of January.

Owned by Derry City and Strabane District Council, the leisure centre opened in 1980; it was closed in 2015 and replaced by the Foyle Arena in St Columb’s Park.

It was reported this time last year a buyer, believed to be a Europe-wide supermarket chain, had been found for the site, following an “extensive public procurement and marketing exercise” 

Prior to this announcement, the redevelopment of the derelict site had been put out to tender by Council; according to the tender notice, Council intended to “sell the site by way of long lease to the appointed developer, in accordance with and subject to the terms of a development agreement”. 

The contract pack which included the lease and development agreement was issued to the prospective purchaser on November 2, 2023.

In September 2024, Council and the prospective purchaser agreed to extend the tender validity period until January 9, 2025. 

However, at January’s meeting of Council’s Business and Culture committee meeting, Council officers sought members’ approval to “withdraw from the procurement process” with the prospective purchaser unless the contract was signed and returned by Friday, January 31, 2025, The Derry News understands.

In addition, it was agreed Council officers would re-initiate the disposal process, draft tender/sales pack, and appoint a commercial agent. 

The Derry News also understands, Derry City and Strabane District Council believed extending the tender validity period indefinitely was not a “sustainable” position for it to take; the possibility of a “successful challenge” from a third party became a more realistic possibility the longer the tender validity period was extended. 

A spokesperson for the Council said that it was unable to provide a comment at this time as this is a live procurement issue and is commercially sensitive, other than to say that it is continuing to work closely with the preferred bidder in relation to the contractual requirements required to conclude the sale of this site.

The Lisnagelvin site has been the location for some anti-social activity since the closure of the leisure centre.

The PSNI are treating a fire there in August 2024 as arson. At the time of the fire, the Northern Ireland Fire and Rescue Service (NIFRS) said it believed the fire had been started deliberately.

Alderman Niree McMorris (DUP) described how young people had been repeatedly “breaking into the site” and children had been seen going into the building on the morning of the fire.

Ald McMorris said that the building needed to be “redeveloped” and giving it a new lease of life would be “beneficial for the wider area”.

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