Plans to demolish shopping centre buildings to make way for offices, labs and community spaces have been recommended for refusal.

Cambridge City Council said the project to redevelop the Beehive Centre near Coldham’s Lane would impact sunlight for neighbouring residents.

Owners Railpen, a pensions manager, said the project would create a “workplace and innovation cluster” in the city and become a “new destination for the local community”.

A spokesperson for Railpen said the planning application was being recommended for refusal on a “single technical matter”.

They said: “The council’s planning officer has acknowledged the significant economic, social and environmental benefits of the project.”

The Beehive Centre is home to 17 retail units including a large Asda, Everlast gym, B&M Home Store and a TK Maxx.

It is surrounded by flats and houses that form part of Abbey Ward, which is one of the most deprived areas of Cambridge.

In a report being presented to its planning committee on Wednesday, the city council said the development would “significantly and adversely reduce daylight and sunlight to many habitable rooms and gardens in surrounding properties”.

Railpen wants to demolish the existing Beehive Centre buildings and build workspaces, as well as a local centre with shops, cafes, restaurants and leisure facilities.

It said the development would create 3,000 jobs for Cambridge residents, including entry-level positions and training opportunities.

If the proposals went ahead, Railpen said it intended to relocate “valued retailers” – including the Asda store – to the nearby Cambridge Retail Park, which it also owns.

Abbey resident Denise said she often used the Beehive Centre and worried about the effect on local people of moving the shops.

“It will impact the people who don’t have cars and can walk to the supermarkets here,” she said.

“People would have to take the car out to turn around and go further afield.”

Richard Darler, who lives near the Beehive Centre, had mixed views on the plans.

“For residents it’s probably better, as it’s probably going to be quieter at the weekends,” he said.

However, he thought new offices and labs were the “last thing we need”, adding: “We’ve got enough here in Cambridge – if not, we should build on the outskirts.”

Elliot Tong, a Green city councillor representing Abbey Ward, said the Beehive Centre was “immensely important” to the community.

“A major problem around the city is where you get those things you need to actually survive,” he said.

He agreed that the Beehive Centre needed “sprucing up”, but had concerns about Railpen’s plans.

“Abbey needs this sort of investment and I’m really excited about money being put into it,” he said.

“The question is – are the community being taken into account?”

The city council’s planning committee will meet on Wednesday to make a decision on the plans.