Fareham Borough Council has bought the 475,000 sq ft Fareham Shopping Centre and several adjoining properties on West Street from Madone for £14.2m.
The acquisition forms part of the council’s broader regeneration programme, which includes £16.7m for new community, arts and entertainment venue Fareham Live and £2.5m to replace Osborn Road multi-storey car park, which has reached the end of its useful life, with a modern surface car park.
The Hampshire mall was last traded, according to EG Radius data, in 2015 for £54.5m – an 8% yield.
The council said ownership would enable it to provide “stability and reassurance” to its tenants as it works with them and other key partners to develop a new all-encompassing strategy leading to a more vibrant town centre.
Specialist shopping centre adviser RivingtonHark has been appointed to advise on strategic direction and improvements to the shopping centre. The day-to-day management will continue to be delivered by Munroe K.
Seán Woodward, executive leader of Fareham Borough Council, said: “Purchasing the shopping centre presents a unique strategic opportunity for the council to take control of key assets at the heart of the town centre at a time when we are developing a new strategy to transform the current offer and enhance its appeal. The unprecedented levels of funding we are injecting into this area underline the significance we place on having a vibrant, economically successful town centre and send a clear signal to the market that Fareham town centre remains very much open for business.”
He added: “It is important to say that the acquisition will form part of a long-term regeneration strategy for Fareham town centre, and we will work with the businesses that trade there to understand their views around what is required to improve the vibrancy of our town centre. There will be a full programme of public engagement and consultation, using a wide variety of methods, over the next six months to ensure that the long-term plans for the town centre are driven by the needs and aspirations of Fareham’s residents, businesses, shoppers and visitors alike.
“A key early priority will be to look at how the town’s evening economy can be enhanced by improving routes between the successful restaurants and bars in West Street and the Fareham Live venue in the evenings, for when it opens in 2024.”
RivingtonHark co-founder and executive director Mark Williams said: “Fareham Shopping Centre offers huge potential to improve the wider town offering, and we look forward to working with the borough council in evolving and influencing those plans. As owner of the shopping centre, the council can now take a view of the town centre as a whole.
“Work on a new regeneration strategy for Fareham town centre, which will seek to build on its positive aspects and identify ways it can be improved, is well underway.”
Lambert Smith Hampton advised the council on the acquisition.
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