Mike Ashley’s Flannels and Sports Direct businesses have agreed a 130,000 sq ft leasing deal at the Metrocentre in Gateshead, taking up a former Debenhams store for a new flagship.
The retail group has exchanged contracts with the Metrocentre Partnership, with discussions led on its behalf by asset manager Sovereign Centros, on a 15-year lease at the former department store in the Red Mall.
Under the deal, Flannels will move into a 70,000 sq ft store on the ground floor, upsizing from 5,000 sq ft on the Upper Red Mall.
Sports Direct will occupy 60,000 sq ft on the first floor, relocating to the centre from a retail park in Gateshead.
The former Debenhams is occupied by Next Home & Beauty, which will consolidate into Next’s existing premises in the Green Mall.
Graeme Jones, director at Sovereign Centros, said: “These lettings will create a new destination point for the centre’s Red Mall. The store sits on one of the main entrances to the centre and therefore important from a visual presentation perspective. The transaction completes a major element of our business plan leasing up surplus former department store space.”
The news follows the recent refurbishment of the centre’s “town square” space and the opening of Harrod’s H Beauty concept in the former House of Fraser store.
Jones added: “Retailer interest in the centre is strong. We are not only attracting new premium brands, but existing retailers are upsizing into new flagship stores. Both JD and H&M upsized earlier this year and are trading really well.”
Lunson Mitchenall and Time Retail acted for Sovereign Centros.
View all recent lettings in and around the Metrocentre >>
To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews
