Cabot Circus, Bristol
Owner Bristol Alliance (Land Securities and Hammerson)
Size 1m sq ft
Principal tenants Harvey Nichols, House of Fraser, American Apparel, Urban Outfitters, New Look, Next, Zara
Recent lettings Disney, Mamas and Papas, Mango, Pandora, Oliver Bonas
Bristol Alliance’s Cabot Circus continues to put in a healthy performance despite the testing times still facing the retail market. According to Suzi Clay, portfolio director for Land Securities, the centre is 97% let –a level not significantly different to vacancy rates when it opened. And it is consistent, she says, with the position last year.
“We have had a few steps forward and a few steps backwards in the meantime because there have obviously been administrations in the past 12 months,” she says.
Five vacancies exist in Cabot Circus and four in the Quakers Friars upmarket part of the mall. Clay says there are advanced discussions on several of the voids.
General interest from prospective retailers remains healthy, particularly for larger space requirements. And the centre is managing to maintain a rental tone of £210 per sq ft. But Clay says everyone would agree the prospect of rental growth remains a taxing issue.
“Growth is only going to be attained in a location-specific manner due to asset management,” she says.
“For the short term, unless there is such asset management that can be done, it is going to be challenging.”
Clay says Cabot wants to continue building on its fashion credentials and develop more leisure uses. She adds: “Compared with similar size centres, there is potential for more leisure uses such as restaurants.”
Some Bristol agents believe there are also issues at Quakers Friars, where they say not all retailers are enjoying the best of times, and a refocus on A3 is being considered. In response, Clay says: “Certain retailers are trading well and others less so. What we’re finding is the A3 sector is not only trading well but becoming an increasingly important part of the scheme so, yes, we believe there’s headroom for more.”
The Mall at Cribbs Causeway
Owners Prudential, Capital Shopping Centres and JT Baylis
Size 1m sq ft
Principal tenants John Lewis, Marks & Spencer, Apple, H&M, Republic, Next
Recent lettings Hugo Boss, Jack & Jones, L’Occitaine, Hobbs, Love Coffee, Paperchase, Hotel Chocolat, Hush Puppies, Pandora, Radley.
Last Christmas, The Mall was 100% let, according to its owners. “How many centres can say that?” asks Jon Edwards, commercial director. Vacancy rates have been consistently low. As the UK descended into recession in 2007, The Mall says it had just two void units – 0.2% of floor area. By March this year it again had two voids, representing 0.3% of floor area. Figures from Experian paint a slightly different picture, but nonetheless, all are considerably below the national average of 7.8%.
Adapting the centre is a core part of the owners’ strategy, and as retailers embrace multi-channel trading, they are having to cope with increasing space demands.
Swindon
Swindon’s retail market is experiencing mixed fortunes. The Brunel Centre is in receivership, although trading, and classic prime Regent Street is witnessing declining rents from £180 to £140 per sq ft. There is new focus, however, on The Parade, where rents are also £140 per sq ft but on an upward curve.
Chris Wright, director of GVA: says: “Retailers are saying that’s where they want to be rather than Regent Street.”
Ashfield Land’s Regent Circus is poised to go on site and construction should start in late summer on its retail and leisure scheme, comprising a 60,000 sq ft Morrisons, Cineworld and 30,000 sq ft of restaurants. Ask has taken space, and Nandos and Prezzo are said to be close to doing deals. The scheme will open in 2014.
The Galleries, Bristol
Owner InfraRed Capital Partners
Size 340,000 sq ft
Principal tenants Argos, Boots, Gap, Laura Ashley, TK Maxx, WH Smith, Waterstone’s
Recent lettings Family Bargains
Life has been no laughing matter in recent times for The Galleries since it was given grief by two major factors: Cabot Circus and the economic downturn. Ironically, it was thought the original design of Cabot might aid The Galleries by drawing shoppers through the Quakers Friars section and on into the existing centre.
That flow has not transpired, say agents. And the voids created in The Galleries by retail relocations to the new centre and the victims of administration are now the stuff of legend.
However, it is not all doom and gloom. New owner InfraRed Capital Partners continues to derive a high income from the car park, and a core of strong occupiers remains in situ.
Jason Herbert of Hartnell Taylor Cook says there are now strategies in place to kickstart the centre.
Southgate, Bath
Owners Aviva Investors and Multi Development
Size 420,000 sq ft
Principal tenants Debenhams, Boots, New Look, Urban Outfitters, Apple
Recent lettings Hollister, North Face, Krispy Kreme
Tight supply in the local market means the SouthGate centre in Bath continues to do well, according to Chris Paterson, fund manager of Aviva Investors. “It is not completely insulated,” he says, “but it is holding up reasonably well.”
The owners will not quote specifics, but will say rents are in line with historic levels, which have previously been £250 per sq ft zone A. Annual footfall, at 17.2m is up, and above expectations.
There are vacancies, but only four in number, says Simon Green, asset manager with Aviva. And one of them, the former 2,500 sq ft La Senza unit, is already under offer.
Stuart Harris, partner of Queensberry Real Estate, asset manager for Multi, confirms substantial interest – about five offers – on an Azendi unit that is coming back to the market.
In addition, several big retailers would love to be in Bath, and in SouthGate, so the strategy now remains careful selection. “It is important that we get the right retailers and build upon what we have got here,” says Green.
A fourth and final stage of SouthGate – a restaurant quarter beside the railway station called The Vaults – is under construction.
