M&G Real Estate and intu have sealed a lease agreement with US retailer Gap at Manchester Arndale shopping centre.
The retailer has signed a 10-year lease to occupy a 10,000 sq ft store at the centre, which is jointly owned by M&G and intu.
The joint venture’s retained agents are JLL and Metis Real Estate Advisors.
Kannika Mall, asset manager at M&G, said: “We continue to position the centre as one of the main retail destinations in the region.
“We are regularly approached by global fashion brands that are looking for a chance to capitalise on the regional and international exposure Manchester Arndale offers.”
US clothing retailers have historically struggled in the UK market – as signposted by the respective challenges faced by Gap’s Banana Republic chain and American Apparel in 2016, as well as young fashion chains Forever 21 and American Eagle in recent months.
Banana Republic closed all eight of its stores in the UK in 2016; American Apparel closed all 13 of its British shops in the same year.
Forever 21, which has kept its UK store portfolio under scrutiny, also shuttered its Essex intu Lakeside, Westfield Stratford City and Glasgow stores in the same year, as well as its intu Trafford Centre store in 2015.
And last year American Eagle ceased trading at its stores in Bluewater and both Westfield shops in London and Stratford.
However, like Gap, some US clothing retailers have continued to sign for new stores in the UK. Notably, Abercrombie & Fitch is set to open its second UK store at the intu Trafford Centre in 2019.
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