The words “cinema complex” and “successful” are words agents and developers did not expect to see together for quite some time. In the early 1990s, over-enthusiastic developers spotted that the cinema market was getting hot, and built extensively as a response. The market suffered the inevitable saturation and cooled down considerably.
But Greater Manchester is seeing something of a mini revival. AMEC and Stayley’s Ashton Leisure Park at the 1.2m sq ft industrial and retail space at Ashton Moss, which opened last December, already has its sights set on expansion. Meanwhile, Manchester-based developer CTP has just been granted planning permission for a 15,500 sq ft, £3.75m, six-screen cinema and restaurant development in Altrincham town centre.
While it is good news for the cinema-going public, these developments could result in the death of some existing schemes.
Stuart Burdon-Bailey, associate director with CB Richard Ellis, says the AMEC/Stayley joint venture has filled a gap in the market and will help expand the sector. He adds, however: “The Showcase at Hyde Road, Belle Vue, is going to suffer. Ashton will also pinch a little from the Odeon at Sandbrook Park, Rochdale, and from UGC Grand Central at Stockport, which was already beginning to suffer following the opening of the UGC at Parrs Wood in Didsbury. “It is robbing Peter to pay Paul,” says Burdon-Bailey.
“I do feel these new buildings will have a negative effect on existing cinemas. What tends to happen with this sort of situation is that the market becomes carved in two, and the customer profile becomes diluted as they travel between the various outlets,” comments Andrea Stott, associate partner with GVA Grimley.
UGC refuses to comment on whether its cinemas were suffering as a result of Ashton Leisure Park, but certainly the Ashton Moss site – which houses familiar out-of-town names such as Cine UK, Frankie & Benny’s, Brewers Fayre and Hollywood Bowl – is doing well. Mike Horner, senior developer and surveyor at AMEC unsurprisingly waxes lyrical about the scheme.
“We are delighted with the success of the scheme. There are just two restaurant units on phase I, and seven-and-a-half acres for new opportunities on phase II,” he says.
Already another four restaurant operators are set to open on the site in the next six months.
When asked about the effects on surrounding venues, Horner says there is always competition between schemes, but he says AMEC identified a gap in the market. “The overall one-stop offer might have attracted visitors from further afield than anticipated. But there’s no doubt Ashton suffered from a lack of entertainment. People have been telling us they were waiting for something like this.”
Commentators in towns such as Stockport realise they need to do more improve leisure offers and are starting to fight back. Developer Targetfollow has bought the UGC Grand in Stockport and has plans for redevelopment.
According to Adrian Longstaff, partner with Donaldsons: “Targetfollow are looking at revamping the site, building a budget hotel, casino and restaurants. Being located on the M60 makes it accessible with a good catchment area. Because it is easy to get to, it could attract people from Ashton Moss as well. It is going to be a family-led scheme.”
Burdon-Bailey agrees that operators who are shrewd enough to take advantage of good locations will be successful. “CTP planning to open in Altrincham was clever because it’s got a strong catchment area. It will affect the Trafford Centre and potentially Didsbury, although that might be only a minor element.”
But there is also the fact that many buildings built at the height of the cinema boom now need updating. “Pressure is on the first generation product as more cinema companies bail out of schemes, and it’s not just in Manchester. UCI have come out of Crystal Peaks, Sheffield and UGC have come out of Birmingham’s Arcadian Centre.”
But whether the mini resurgence around Greater Manchester spreads to the rest of the country remains to be seen.
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It has always been the white elephant in Manchester’s leisure scene with a chequered history to match. AWG’s development of the 500,000 sq ft Great Northern scheme failed to set the leisure scene alight when it opened just over six years ago. Problems with occupiers not taking the expected amount of space saw the scheme sold off last year to Capital & Regional for £5m, a fraction of its £72.5m cost. Cinema operator AMC dealt the development a big blow when it decided to cut the number of screens in the scheme from 24 to 16. “Great Northern remains a destination with no identity and no focus,” states CB Richard Ellis’s Stuart Burdon-Bailey. But everyone is keen for it to work. “Nobody wants to see a site like that, given its position on Deansgate, not working,” says GVA Grimley’s Andrea Stott. But proposals afoot to reinvent the building will, says Burdon-Bailey, “impact upon the whole city-centre market”. There is already some positive news from the scheme. Polly Farrell, head of leisure at C&R, says that since the company took a more flexible approach, the offices are letting, and all the Deansgate-fronted shops are let. Agent Tushingham Moore would not comment. Plans for the estimated 200,000 sq ft of unused space will be revealed next month, says Farrell. “We have been reviewing various possibilities to fill a large chunk of the space,” she says. “We are moving away from the original design of numerous units, and are looking at configuring it into large floorplates.” When asked if this was to attract a possible casino operator, Farrell replies “maybe”. “It’s not just casinos. It’s bowling, it’s bars, it’s restaurants.” Adrian Longstaff, partner with Donaldsons, says the Great Northern is perfect for a casino. “There’s going to be at least two huge casinos in Manchester of between 60,000 sq ft and 100,000 sq ft if the government relaxes gaming legislation. The Great Northern is a prime site, especially if the units are reconfigured and there is a multi-storey car park. “Potential operators are looking at these venues being 24-hour, and they will want people to be able to drive there.” Any reinvention of the Great Northern can only strengthen Manchester’s leisure scene. Like other UK cities, Manchester’s high street entertainment trade has suffered. “We have seen massive downturns in rents,” says Andrew Dodd of Christie & Co, who adds that previous rents of £100,000 pa are now down as low as £50,000. |
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Earlier this year, AMEC shelved its retail plans at Sportscity, and within a week the council was inviting bids for a “casino-style” development. The council’s haste has bemused some agents. “There are some shenanigans going on at the council,” says one unnamed agent. “AMEC stepped aside from its own retail plans at Sportcity and within one week a 20-page full-colour brochure outlining policy comes out inviting proposals from operators who ‘will only be accepted following the successful deregulation of the gaming act’. It seems that the council was planning this for a while and were in negotiations,” says the agent. David Deacon, senior development surveyor for AMEC, says there were discussions “at a high level, and it was agreed that the council would glean what casino interest there was out there.” Deacon adds that there are not many large sites such as Sportcity in built-up areas. The area is roughly 18 acres between Manchester City’s stadium and Alan Turing Way. “There has been keen interest from casino operators. So rather than progress with the plans that we had, we allowed a policy to go out to gauge occupier interest.” Manchester council is candid about its desire to have a casino on the site saying it could create up to 2,000 jobs. The desire stems from the government’s planned sweeping changes to the UK’s gaming legislation that would allow for casinos of up to 150,000 sq ft. As a result, UK, US, and other international operators have been buying up huge swaths of land in anticipation of deregulation late next year. A report went before the council’s main executive committee on 17 March, outlining interest from gaming operators looking to build on the site. MGM Grand and Venetian are said to be among four candidates. Referring to the report, executive chair and leader of Manchester council, Richard Leese, says: “We want to investigate every possibility of investment, and we are asking our chief executive to negotiate with casino operators to investigate the creation of a major complex.” Leese adds that east Manchester would be ideal because of its transport links. The council is envisaging proposals that also include bars, restaurants, and conference and sports facilities. The interested companies were to present their cases to the committee two days ago (25 March). Regardless of how quickly the council appeared to change its mind, most agents in the city would welcome a Las Vegas-style casino. “A casino would be a regional attraction, ” says Stuart Burdon-Bailey, associate director with CB Richard Ellis. |
