Spanners have been flung into the works of Southampton’s retail and leisure markets. A government planning inspector has questioned the council’s retail land allocation, and proposals for a Las Vegas-style super-casino have been scuppered, casting plans for a third phase to Hammerson’s flagship West Quay development into doubt.
The first setback came when government inspector Christina Downes warned in January that the council’s latest local plan allowed for potentially unsustainable retail development on an edge-of-city-centre site.
In Downes’ line of fire is a vacant 5-acre former Pirelli wireworks on West Quay Road, at the edge of the town centre. Owner the Troika consortium – which includes Morley Fund Management – already has consent for a mainly retail mixed-use scheme on the site.
Inspector’s report
But, unless the council can prove the market is still hungry for retail space, Troika could find itself unable to develop the site.
As Simon Neilson, partner at Neilson Holt, says: “The inspector’s report on the local plan says Southampton has not got its act together.”
The second setback came when culture secretary Tessa Jowell in March cut the number of planned super-casinos in the government’s Gambling Act from eight to one.
The decision ended plans for a super-casino as part of West Quay phase three (see panel), and left preferred developer Ameristar – a Las Vegas-based casino operator and major player in the Bravo Network consortium – considering whether to proceed.
Local agents fear that this places a question mark over the entire development, which has a reported £240m budget.
The two issues are, at best, hurdles and, at worst, killer blows to grand designs for Southampton. Agents, developers and the council now have to face the possibility that Downes has simply reeled in unworkable retail proposals, and that the setback to the super-casino has demonstrated West Quay phase three is undeliverable.
In retail terms, the government inspector’s report asks the council to prove that the market can cope with additional space. Agents are convinced it can. Jeremy Braybrooke, director of Palmer Fry, says: “Demand is very high and it is not being met. The reasons are a lack of land and a lack of development opportunities.” He says the local market is already missing out, with no space to cater for large requirements: “Ikea wanted to be here, but now it looks like it could go to Portsmouth, which is disappointing,” he says.
Since the opening of Hammerson’s 800,000 sq ft West Quay shopping centre in September 2000, practically all units have been let. Rental figures paint a healthy picture. King Sturge research shows that prime zone A rents have risen from £240 per sq ft in 2002 to £260 per sq ft this year.
The retail warehouse occupiers in phase one, which comprises retail warehousing, are paying around £36 per sq ft. King Sturge partner Michael Green points out that retailers such as Mothercare are choosing to locate in the larger units that phase one offers rather than the city’s shopping centre. It proves, he says, that there is a need for additional large shops in the city.
Key development
Agents are anxious that the city could miss out on the chance to capitalise on the success of West Quay’s phase one and two. The Pirelli site is touted as a key development site, and agents say the cost of not developing further retail here and at West Quay will be the loss of requirements.
“I am convinced the council wants to promote retail,” says Green, “and it needs to look at current demand and supply and justify the need for retail. This is a minor blip.”
Richard Smith, the council’s city development manager, intends to put matters right. “The first piece of work is an assessment of the need for additional retail,” he says. “West Quay phase two demonstrated that the demand is there in the region. The scheme, and in particular the ice rink, has been a huge success.”
Local agents appear to be unanimous in backing the need for extra retail space at the Pirelli site, but the major leisure schemes proposed for West Quay phase three spark a bit more debate. “With the ice rink, it’s a case of Southampton will believe it when they see it, because we’ve been waiting a while,” says Braybrooke.
Although some agents remain cynical about the scheme being delivered, others say the lack of prime leisure facilities, such as an indoor arena, is restricting the city’s leisure draw to a handful of bars and restaurants.
Agents say any delay or possible non-delivery of West Quay phase three would be a disappointment for Southampton. John Butt, director with Young & Butt, comments: “We have identified the need for an arena that could host acts and events as part of national tours. So yes, we would miss out.”
Elton John is playing at Southampton FC’s St Mary’s Stadium this May, prompting agents to press harder for a purpose-built arena to make large concerts a permanent fixture.
Smith is adamant that the developers are not ready to jump ship. He says Ameristar is still on board and the scheme, ice rink and all, is still on the cards, with a smaller casino not ruled out.
“Ameristar is waiting until the general election is over, so it has things on hold. It hasn’t pulled out,” says Smith. “And there will still be a licence for a large casino available.”
Nor is John Naylor, project director for Bravo Network, put off by the setback to the proposed casino. He says the plans are very much in the pipeline. “We will develop an arena, car park and public ice pad,” he says. “Until we know the outcome of the general election and the fate of the Gambling Act, we won’t know where the future lies as far as a casino is concerned, but it is far too early to pull the shutters on the idea.”
There are grand plans for Southampton’s leisure and retail markets but most are yet to get off the ground. The council insists that West Quay phase three will happen and that additional retail space will be secured eventually. Now that the schemes are facing setbacks, it will be a measure of how serious it really is.
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Aside from talk of ice rinks and casinos, Southampton council is keen to shout about other plans for the city’s retail and leisure draw. The city is often criticised for its lack of high-quality leisure, and the council is seeking to create the right space to address that. A cultural quarter (pictured left) and civic centre complex is planned for the area around Guildhall Square. The square is intended to incorporate the University of Southampton’s John Hansard Gallery and the Arts Asia project, including a performing arts space. The first phase requires the rebuilding of the Tyrell & Green building, which John Lewis left vacant when it moved to West Quay shopping centre. A planning application is expected this spring, with work due to start later this year. Leisure and retail space is also due to be incorporated into the proposed Royal Pier waterfront development. The mixed-use scheme will comprise office space alongside cafés, bars, retail and a hotel. Owner Associated British Ports will market the site this summer. King Sturge partner Michael Green says: “The crux for the future is opening up the waterfront, so the redevelopment of Royal Pier is an important redevelopment opportunity.” In addition, there are plans to redevelop the Bargate, the busiest pedestrian area of the city, and provide a setting for café bars and nightlife. |
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The 17-acre tract of land adjacent to West Quay shopping centre has been split into three possible development areas. Western area is 7.4 acres of council-owned land where Bravo Network is preferred developer. Plans include: ● regional casino and possible hotel ● 10,000-seat indoor arena/ice rink ●Public ice rink atop a multi-storey car park Central area is 5.3 acres of council-owned land where Hammerson is preferred developer. Initial plans include: ● 170,000 sq ft of retail space ● a 13/14-screen multiplex cinema ● 300 residential units Eastern area is 4 acres of land, 50% owned by the council on a variety of long leases. The remainder is shops with various owners. Hammerson is the preferred developer for a potential redevelopment, although there are no firm plans as yet |
