Hammerson and Hermes are hoping that the people of Leicester defy the credit crunch and keep shopping. In September, the doors opened at their £350m retail-led complex, Highcross Leicester.
The 1.1m sq ft scheme comprises a £30m revamp of the 500,000 sq ft former Shires centre as well as a 600,000 sq ft extension.
It comprises 120 shops, three department stores, 15 restaurants and cafés, and a cinema.
From nowhere, the centre is already in the top 10 of CACI’s national retail rankings and, a month after opening, footfall had reached 2m. The scheme is 90% let, with zone A rents reaching £250 per sq ft, up from the centre’s historic high of £200 per sq ft.
General manager Tom Nathan highlights the fact that three-quarters of occupiers are new to Leicester, including brands such as Zara and Hugo Boss, as well as John Lewis, which has taken a 230,000 sq ft store, its second-largest outside London.
“Historically, Leicester has not been able to attract shoppers,” admits Nathan, “but now we are drawing people in. There was an initial flurry of visitors, which we have been able to sustain, with footfall of 100,000 each Saturday since opening.”
Although he will not talk targets, Nathan argues that the centre’s longer-term prospects are good, with more than 4m people within one hour’s drive of the development. Regional retail agents have also greeted it positively.
Jonathan Emmerson, partner with HEB, says: “The scheme is a big positive for Leicester. It has brought a lot of new names into the city, and will retain shoppers who previously would have gone to Nottingham.”
Nathan adds that the leisure aspect of the centre, including restaurants such as Carluccio’s and Wagamama, combined with opening hours until 8pm, is helping to create a night-time economy. Restaurants, including Metro Bar & Grill and Zizzi, are set to open imminently.
As for the original, refurbished, element of the scheme, Nathan says that it will be 100% let by Christmas, although that will include some short-term lettings.
Next, River Island and Republic have relocated into the new element of the development, and Nathan says talks are ongoing with a potential occupier for the Next shop. River Island’s former store will be let on a short-term basis.
House of Fraser is in discussions with Marks & Spencer to take its 100,000 sq ft store at the refurbished part of the scheme, although at this stage, no deal has been struck.
The development also contains 130 flats, which will be completed imminently, although not all the apartments will be fitted out. Asking prices range from £140,000 for a studio to £220,000 for a two-bedroom flat.
Nathan says prices might be revised, although the developers will not at this stage rule out taking some flats to the rental market.
