British Land, Standard Life and Hammerson are among the landlords that are most exposed in the double blow from Topshop owner Arcadia’s collapse and Debenhams’ liquidation process.
The double collapse could potentially result in up to 16.6m sq ft of empty retail space on the UK’s high streets, according to figures from Radius Data Exchange.
The insolvencies put some 568 stores – around 444 leased Arcadia shops and 124 Debenhams stores – at risk of closure, with some 25,000 jobs at stake. Redcastle, Arcadia’s property business, owns around 31 Arcadia stores.
British Land has 23 Arcadia stores, measuring roughly 300,000 sq ft in total, and seven Debenhams stores measuring around 650,000 sq ft. Combined, the landlord has leased 950,000 sq ft across 30 premises to the retailers.
The data also showed that under different funds, Standard Life owned five Debenhams stores measuring a combined 520,000 sq ft as well as 100,000 sq ft across seven shops let to Arcadia, making it the property owner with the second highest exposure in sq ft terms (620,000 sq ft).
Hammerson owns 14 Arcadia stores, including those held in jvs, measuring some 234,000 sq ft at its flagships and retail parks. It also has two Debenhams stores covering just over 331,000 sq ft. Together, there is around 565,000 sq ft across 16 stores at risk of closure.
Both Hammerson and British Land have each advanced plans to reduce their exposure in recent times. Hammerson has been progressing its plans for alternative occupiers, with its Arcadia spaces at Cabot Circus under offer to new potential tenants, while British Land replaced Debenhams with Facebook at its Regent’s Place office campus last year.
Arcadia and Debenhams: Key figures behind the double collapse
- 568 stores at risk of closure
- 25,000 jobs at stake
- Up to 16.6m sq ft could become vacant
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