Landsec has revealed fresh development plans for some of its prime retail assets.
The REIT submitted a planning application for the third phase of its £45m investment in Gunwharf Quays, Portsmouth (pictured), alongside revising the masterplan for Buchanan Galleries in Glasgow.
At Gunwharf Quays, Landsec plans to revitalise the high-footfall area of Central Square by transforming vacant space into a new family friendly dining hub. The proposals also include installing a digital screen in the centre of Central Square, offering advertising opportunities for brands and providing a space to feature sporting and local events for visitors.
If approved, the Central Square developments would start in spring 2025.
Plans for the second phase of the scheme were submitted last December, focusing on Marlborough Square, a key arrival point at Gunwharf Quays. Those have since been approved.
Nik Porter, head of retail asset management at Landsec, said: “We are focused on enhancing Gunwharf Quays, so it remains a high-quality place that generates value for our brand partners, our communities and our investors.”
At Buchanan Galleries, Landsec has dropped its previous plan to demolish the shopping centre and rebuild it. It now aims to launch a phased approach to rejuvenating the site to create a more vibrant retail destination.
In late 2022, plans were announced to transform Buchanan Galleries into a mixed-use district with green spaces, shops, restaurants, workspaces and improved access to transport hubs. But with the post-pandemic retail recovery, the REIT has opted to retain the shopping centre.
A spokesperson at Landsec said: “In Glasgow we are evolving our plans to focus more on masterplans that can be delivered in incremental phases. Alongside this we will seek to embrace opportunities to retain and reinvent existing buildings in our ambition to reduce embodied carbon.
“To facilitate this multi-phase masterplan, we have recently purchased 229-249 Buchanan Street adjacent to our ownership – reaffirming our commitment to the city.”
These plans follow other investments Landsec has earmarked for its retail portfolio. In August, the group revealed proposals for a £32m investment to upgrade two prime retail locations.
In Cardiff, £17m will be used to transform a former Debenhams at St David’s into an outdoor space with restaurants, kiosks and a leisure area.
In Leeds, £15m has been allocated to expand Trinity Kitchen with food trucks, permanent eateries and an outdoor terrace, turning 72,000 sq ft of underused retail space into a hospitality hub.
In May, chief executive Mark Allan said that the REIT would allocate around £600m out of a total £1bn of investment towards retail – specifically large-scale – and had identified 20 assets that met its investment criteria. The firm’s £1.8bn retail portfolio has an occupancy level of nearly 95.4%.
The REIT is understood to have been among the bidders for Nuveen’s stake in the Edinburgh St James shopping centre.
“Our focus for the rest of the year is now on acquisitions as we aim to recycle the proceeds of our hotels disposal into additional opportunities in major retail,” Allan told EG in May. “Alongside our two committed office developments in London, this is our key focus for investment at the moment and where we plan to apply most of our existing balance sheet capacity.”
Image © Landsec
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