Frustration grows as Knight and Lee site remains untouched
A major redevelopment project in Southsea has stalled, sparking anger from local leaders and residents.
Developers THAT Group secured planning permission in 2022 to transform the former Knight and Lee site on Palmerston Road into a 43-bedroom hotel, two cinemas, offices, a gym, shops, food and drink venues, and an indoor food market.


Although the plans were originally approved in 2019, they had to be reviewed due to the Covid-19 pandemic. Since final approval was granted, however, little visible work has taken place on the site.
In May 2024, Councillor Steve Pitt, leader of Portsmouth City Council, told The News that the council had been “prepared to step in” with similar projects and wouldn’t “rule out” taking action on Knight and Lee.
Recently Portsmouth South MP Stephen Morgan voiced his disappointment on social media after what he described as “months” of chasing the council for an update.
He said there had been “no progress” despite earlier reports that the council might take over the site which is “not good enough”.
Morgan added he would continue to engage with and apply pressure on THAT Group, describing the site as a “jewel in Southsea’s crown” that needs to return to the high street.
The council responded by saying it would not be appropriate to comment on the MP’s remarks.
A spokesperson added that while any recent talks with the developer were confidential, the council had been working to “encourage and facilitate” the site’s redevelopment while protecting public funds.
On why no progress has been made, the council said questions “need” to be directed to the owners.
The Knight and Lee department store, one of just two John Lewis shops in the UK to keep its original name, was the first the retailer had closed since 2006. At 35,000 sq ft, it was the smallest full-range department store and proved difficult to modernise.
Originally opened in Southsea in 1865, it was taken over by the John Lewis Partnership in 1933 and closed on 13 July 2019 after more than 150 years of trading.
THAT Group were approached for comment.