Marks & Spencer faces backlash over 300% increases in Edinburgh retail centre
Philip Smith
Retailers faced with hikes in rent of up to 300% are threatening to pull out of Marks & Spencer’s Gyle shopping centre in Edinburgh.
Arbitrations have started on the first reviews at the 27,870m2 (300,000 sq ft)five-year-old out-of-town scheme. Marks & Spencer, which bought the Gyle on an initial yield under 4% two years ago, is seeking increases for prime space on a par with the £200 zone A in Edinburgh’s top pitch, Princes Street.
Retailers already at arbitration include Disney, James Thin and Stylobarrett. Intersport, which took a prelet at £91,000, has been asked to pay £285,000 pa at review. Gerald Cameron, InterSport’s managing director, said it could be forced to close: “Marks & Spencer, above all, should know about the problems that retailers are facing at the moment.”
Agent David Griffin is advising Shmook, one of about 12 occupiers which, Griffin said, may try to assign their leases.
John Mills of Leslie Furness & Co, which is advising Tie Rack, claimed his client could afford only a 75% rise in rent: “Even at this level the branch would not return a profit.” Marks & Spencers said that Jones Lang Wootton was advising but would not comment further.
- M&S has just pulled out of a scheme in Gloucester where it was due to anchor Arrowcroft’s Blackfriars development. And Stephen Roberts, head of Marks & Spencer’s overseas property expansion, was one of the managers made redundant by the retailer two weeks ago.
