Mark Simmons reports on the increasing popularity of retail and leisure development in the former Strathclyde region.
How many shopping centres does it take to fill a town? In East Kilbride, the New Town on the southern boundary of Glasgow’s metropolitan area, it appears that three is not enough. Grosvenor Estate Holdings has teamed up with GA Properties to expand the town’s central shopping area with another new scheme. The joint venture partners are not put off by Land Securities’ two centres – Princes Mall and The Olympia – and British Land’s The Plaza. In fact, they have already started work on their Princes Square scheme.
The existing 1960s-built square will be covered and 15 new unit shops will be created in addition to 15 existing ones, bringing the total size of the scheme to 9,000m2 (96,878 sq ft). A glazed link to The Olympia and The Plaza will also be added and the redevelopment should be completed in autumn 1997.
John Irvine, Grosvenor Estate Holdings director Scotland, believes that his scheme will complement rather than compete with the other centres: “It’s effectively all one shopping centre. It knits together as a block of malls.” Irvine says that Princes Square should be able to provide units in sizes not currently available in the town centre. Zone A rents will be pitched at about £646 per m2 (£60 per sq ft); this compares with East Kilbride’s top rent of £969 per m2 (£90 per sq ft).
No worries
Irvine is not unduly concerned about the disruption that could be caused to shoppers while work is under way. He says: “People will put up with some disturbance if they can see that they will be part of a busy shopping mall when the work is done.”
Redevelopment is also in the pipeline in nearby Hamilton. Hamilton Enterprise Partnership is proposing a retail and leisure scheme on the former Palace grounds, demolished some years ago. A 5,574m2 (60,000 sq ft) foodstore and 14,864m2 (160,000 sq ft) of retail warehousing are planned. Earlier this year Miller Developments and Stannifer opened their 13,940m2 (150,000 sq ft) Hamilton Retail Park on the former Hamilton Academicals football ground. There is space for a further 697m2 (7,500 sq ft) unit for either A3 or retail warehouse use. J Trevor & Webster and Peter Campbell & Co are joint letting agents.
To the north-east of Hamilton, a retail warehouse park is planned between Gartlea Road and Hogg Street. Morrison Developments’ £15m Airdrie Retail Park would comprise nine units and a drive-thru restaurant on 3.6ha (9 acres). Morrison hopes to complete the park next summer. In neighbouring Coatbridge, the 9,290m2 (100,000 sq ft) Quadrant shopping centre, owned by North Lanarkshire district council and the Bank of Nova Scotia, is consolidating its position as a North Lanarkshire shopping destination.
The weekly footfall has nearly doubled in the past year, from 35,000 to 60,000. Letting agents are Mason Owen and Culverwell & Co. Big Beat, the company that operates Glasgow nightclub The Tunnel, has opened a pub in the centre, the Merlin McFly.
Further north, Arrowcroft has obtained planning consent for phase 5 of the redevelopment of Cumbernauld town centre. The £50m scheme is based on 27,870m2 (300,000 sq ft) of shops in four anchor stores and 50 unit shops on a 3.8ha (9.5 acre) site. The scheme will link into the existing shopping area and double shopping provision in the town to 62,708m2 (675,000 sq ft). Agents are Donaldsons and Healey & Baker.
Rising in the south-west
Even more development is planned on the south-west side of Glasgow, along and below the Clyde. In Paisley, Tilbury Phoenix has sold a 7.3ha (18 acre) site at The Phoenix, Linwood Road to American leisure operator National Amusements. National already operates a leisure scheme in Coatbridge. Showcase Cinemas is starting work on a 14-screen multiplex with 1,260 parking spaces at the Phoenix site, which is due to open in May. More leisure facilities, in the form of three ice rinks and a National Maritime Heritage museum, are under construction at Braehead Park, a 55,760m2 (600,000 sq ft) shopping centre, north of Paisley. Capital Shopping Centres is developing the scheme on behalf of joint owners Marks & Spencer and Sainsbury’s, who will both act as anchors. Two restaurants and 34,850m2 (375,000 sq ft) of retail warehousing are also planned. Lunson Mitchenall and Peter Campbell & Co are the letting agents. The planned opening date in autumn 1998 coincides with the opening of Buchanan Galleries in central Glasgow (see p112).
The prospect of Braehead has not dampened spirits in nearby towns. To the west, at Port Glasgow, Clydeport Holdings and Stannifer Developments have submitted an application for a 13.4ha (33 acre) mixed-use scheme, including retail and leisure elements, on part of the derelict former Scott Lithgow site. Renfrewshire Enterprise, which owns a 2.4ha (6 acre) yard next door, is planning a separate retail scheme. Clydeport would like both schemes to run in tandem. In nearby Greenock, there have been several lettings at Prudential’s Oak Mall shopping centre. Jaime Dunster, associate director of joint letting agent Chesterton comments: “With a local catchment larger than Ayr, Greenock is well able to cope with any perceived threat from Braehead.”
Key transactions
Brandon Parade, Brandon Parade South, Motherwell: Wimpey Properties, advised by Smith Cole Wright and DTZ has sold the long leasehold interest in four units totalling 1,579m2 (17,000 sq ft) to Thistle Realty for £3.5m, reflecting a net initial yield of 8%. Donaldsons acted for Thistle.
Anniesland Retail Park, Anniesland: Landlord Prudential has bought back the lease of a 936m2 (10,075 sq ft) unit and let it on a new 23-year lease to Poundstretcher. A three-month rent-free period was agreed, with a starting rent of £170 per m2 (£15.75 per sq ft). Hales Johnstone acted for Poundstretcher.
Oak Mall, Greenock: Five units, totalling 1,179m2 (12,691 sq ft), have been let to Sports Connection, Spec Deals, H Samuel, State of Independence and Chisholm Hunter. Units 14a,14b, 14d, 48 and 49 were let – all on 25-year leases except Unit 49, which was let for a 15-year term. Rents of between £51,000 pa and £80,000 pa were agreed with landlord Prudential, which was advised by Donaldsons and Chesterton. Knight Frank, Peter Campbell & Co, Culverwell and The Griffin Webster Partnership acted for the tenants.
The Phoenix, Linwood Road, Paisley: National Amusements has purchased a 7.3ha (18 acre) site from Tilbury Phoenix. The price is understood to be in the region of £4.25m. DTZ Debenham Thorpe, Knight Frank and Drivers Jonas represented Tilbury Phoenix.
1 Britannia Way, Clydebank: Going Places, advised by DTZ, has taken 83m2 (893 sq ft) from the Co-Op Insurance Society on a 15-year lease at a rent of £32,000 pa. Eric Young & Co acted for the Co-Op.
4 Righead Gate, East Kilbride: Abbey National, advised by Chrystal Rooney, has assigned its lease on 80m2 (858 sq ft) to Games Workshop at a passing rent of £17,500 pa. Craig Bales & Co acted for Games Workshop.
37 Princes Mall, East Kilbride: Tot Spot, advised by J Trevor & Webster, has assigned its lease on 93m2 (1,000 sq ft) to XS Clothing at a passing rent of £40,000 pa. Peter Campbell & Co acted for XS.
