Full service provision in shopping centres could become a widespread practice in the UK, with landlords running retailer administration in return for higher fees.
Speakers at the BCSC annual conference this afternoon discussed the concept with delegates at a workshop, taking their lead from the US and initiatives already underway in the UK. The debate was chaired by John Partridge, consultant at Henderson Gobal Investors.
Full service provision would see landlords use their knowledge and contact base across the UK to deliver low-cost, efficient products and services to tenants and customers.
Services might include a helpdesk whereby tenants could request emergency cleaning or security facilities, or additional CCTV which would be linked to retailers head offices, enabling them to monitor footfall and promotions within the stores.
Prudential already provides a range of such services at its Belfry scheme in Redhill, and is now planning to roll out the initiative across its other shopping centres.
A Prudential delegate said: “Landlords are wary of full service provision because they are scared it will impact on investment values, and retailers can be reluctant to yield control. But it makes a lot of sense.
“Landlords can continually evaluate performance and find deals which benefit both owner and tenant where retailers may set up service contracts simply by flicking through the Yellow Pages.”
Grosvenor and Henderson are also in talks with US-based Simon Property Group to invest in a vehicle which acts as a one-stop-shop for products and services for the retail sector. Known as Tecient, the vehicle aims to service around 400 shopping centres worldwide, and would be contracted by the landlord on behalf of tenants.
Grosvenors head of business Alex Bennett said: “There is a great opportunity to do one or two big deals and pass on the savings to retailers while making a significant profit. There are a lot of very modern systems in new shopping centres which operate independently but which are very similar.
“This will mean significant cost cuts for both sides in the retail equation.”
EGi News 08/11/01
