Regenerating coastal towns is a costly business. As well as breathing new life into often neglected town centres, significant investment is needed to ensure waterfront assets draw in the crowds.
With development stalled during the recession, seaside towns are battling to attract investors and get ambitious plans off the drawing board.
Bournemouth
“We want to position ourselves as the premium resort in Britain,” says John Beesley, leader of Bournemouth city council. “We started the process before the recession by setting up a new development delivery company and were ready to hit the ground running.”
Bournemouth Development Company, a joint venture between the council and Morgan Sindall, was incorporated in 2011. The limited liability partnership is designed to invest in public sector sites and unlock development potential to deliver a town centre masterplan.
It has kicked off by focusing on urban living. BDC is on site at its Citrus Building at Leyton Mount. With completion slated for March 2015, the scheme will provide 64 flats and ground-floor leisure.
In August, BDC completed Madeira Road West, providing accommodation for 378 Arts University Bournemouth students. Plans are in place for a range of other residential projects, before addressing office and retail development.
Whatever BDC’s successes, the council can deliver its vision only if other private sector investors get on board. Yet, ironically, it frustrated a proposed £50m private sector leisure development.
Developer Licet Holdings was granted planning consent for its West Central scheme in 2007. The recession delayed development and the project was almost derailed by the council, which wanted to use the site for a bus hub.
However, in December Legal & General committed to fund the 110,000 sq ft scheme and the prospect of a costly legal battle saw the council back down.
Licet has already secured a 10-screen Odeon cinema and eight restaurants, including Nando’s and TGI Fridays. Construction is about to begin, with completion scheduled for summer 2016.
By next summer two Hilton hotels will be open opposite the site of THAT Group’s £60m Terrance Mount development. Both leisure schemes are likely to boost Bournemouth’s retail market and improve links between the town centre, seafront and Lower Gardens.
L&G’s Andrew Ferguson says: “Bournemouth needs a central leisure hub and in the end it is occupiers who dictate the best location.”
Southampton
With its strategic port and wealthy hinterland, Southampton should be thriving, but years of under-investment have left the city wanting.
“As a destination we have been punching well below our weight,” admits Southampton city council director of place Stuart Love. “But our masterplan outlines £3bn of investment by 2026, £1.6bn of which is already being developed or has planning consent.”
ABP has been upgrading port facilities and the council is keen to capitalise on the investment.
As with Bournemouth, residential development has brought early wins. The University of Southampton has delivered new student accommodation, while demand for waterfront property has prompted schemes such as Allied Developments’ residential tower at Admiral’s Quay.
Meanwhile, in 2016 the cultural quarter will be complete once Grosvenor delivers its £40m arts complex, restaurants and 38 flats.
Work has also begun on Hammerson’s leisure extension to WestQuay shopping centre. Showcase Cinema de Lux has signed up for the £70m Watermark development, which will include 20 restaurants and a public plaza.
But time will tell whether Southampton can deliver the jewel in its masterplan crown – the £400m Royal Pier Waterfront.
ABP’s concerns about its effect on the port has led to significant delays, but earlier in the year RPW, a joint venture between Morgan Sindall Investments and Lucent, finally secured a development agreement.
A planning application is likely to be submitted next year for the 32-acre site, which could accommodate hundreds of homes, offices, shops, restaurants and a super-casino. It will extend Mayflower Park and provide a new home for ferry operator Red Funnel.
Michael Green, head of JLL’s Southampton office, says: “It’s critical this is delivered if Southampton is to finally integrate its waterfront with the city centre.”
Brighton
With its thriving economy and London-on-Sea status, Brighton remains the envy of all other south coast resorts, having moved out of recession more quickly than most, largely due to the growth of its creative and digital industries.
The council has secured £92m of funding through the Greater Brighton City Deal and Coast to Capital LEP’s Growth Deal. The priority is to provide housing and employment space across the city region.
Projects include the redevelopment of New England House, a hub for creative businesses. Meanwhile, in Burgess Hill, plans are afoot for housing and a business park.
With 9m tourists visiting the city each year, Brighton must continually invest in new seafront attractions. Marks Barfield, developer of the London Eye, has started construction of i360, a seafront viewing tower, due to open in summer 2016.
As the economic climate improves, Brighton is on the radar of a growing list of developers. Cathedral Group and McLaren Property recently won consent for Circus Street, a £100m mixed-use development on the site of the city’s derelict municipal market.
It will deliver 142 homes, 450 student bedrooms, 30,000 sq ft of flexible office space, restaurants and a public square.
Cathedral bid for the scheme back in 2007, but had shelved it during the recession. It now intends to start construction late next year, to complete in 2017.
“Investing in Brighton is a no-brainer,” says Cathedral Group creative director Martyn Evans. “It’s vibrant, creative and, while values are good, it’s likely to attract a lot more investment.”
