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Retail reimagining becoming a reality
During the past year, a lot has been said about the need for the repurposing of retail property but there hasn’t been a lot to point to in terms of projects underway. The Colliers team that specialises in ‘reimagining retail’ is now changing that situation.
One recent study has indicated that during the past year more than 300m sq ft of space across England and Wales permanently ceased to be used for retailing. Whilst this might actually be positive in addressing the supply overhang that the retail property sector faces generally, it also means that there are a huge number of assets looking for an alternative use.
Colliers have been working to help owners and occupiers reimagine how their retail holdings could be run and used for a number of years and could provide a solution to this burgeoning problem. Colliers’ Head of Retail Development, Greg Styles, comments: “From the asset management of shopping centres to the complete redevelopment and repurposing of properties for other uses, we have been creating solutions for clients and adding considerable value to their assets”.
One of the most prominent examples of the trend is the £4m new leisure facility at Southside shopping centre in London’s Wandsworth which is set to become one of the UK’s most exciting retail repurposing projects. Leisure operator, Gravity, is to create a new offer in what was the centre’s 80,000 sq ft former Debenhams store.
Colliers advised Landsec and Invesco on the deal, which will be Gravity’s first site in London and will feature gaming experiences such as e-karting, augmented reality bowling, crazy golf, pool, ping-pong, and shuffleboards. It will also offer an array of dining and drinking options, including a noodle kitchen, American diner, and cocktail bar.
“From the asset management of shopping centres to the complete redevelopment and repurposing of former retail properties for other uses, we specialise in creating innovative solutions for clients that revitalise and add considerable to their assets.”
Colliers Associate Director, Jessica Short, comments: “The size of the floorplates, set across four storeys, has allowed Gravity to bring in new concepts such as e-karting whilst also providing tried and tested favourites such as bowling and soft play. As Southside has such a large catchment population, many of which are young families, we have no doubt that Gravity will provide something for everyone and will create a real sense of excitement in Wandsworth.”
In Stratford upon Avon, the team has secured planning permission for the redevelopment of a former BHS department store which had been vacant since it closed in 2016. Having bought the site for a developer client, the team secured an operator for a new 170-bed hotel as well as a new restaurant in the adjacent unit. Lloyd Entwistle, Director of Retail Leasing, who led the project comments: “None of the original 72,000 sq ft of space that the property provided will remain as retail and this is exactly the sort of initiative the retail property sector needs in many locations to re-balance.
“We’re also collaborating with the Stratford-upon-Avon Town Trust and Blue Coast Capital – the owner of the town’s Bell Court shopping centre – to look at where there may be opportunities to change the mix and bring in new complementary uses.”
John Stacey of Blue Coast Capital commented: “We’re looking at the potential to repurpose redundant retail space when it becomes available. This could encompass alternative uses that would be complementary to the scheme such as a hotel, workspace or residential.
“For the present, we’re working closely with key local stakeholders to create events, wellbeing initiatives and exciting pop-up shops to boost footfall and enhance the overall visitor experience at Bell Court. In that context, we’re also committed to a diversified occupier mix which embraces independent and national operators.”
The Stratford Town Trust has been at the heart of the community in Stratford upon Avon for more than 500 years. It manages an estate of properties across the town and in its role as a grant giving charity, uses the income from these assets to distribute around £2m each year to support local schools, charities and community groups. The trust’s Head of Finance and Deputy Chief Executive, Rebecca Hampson, comments: “Stratford is a very special place and serves a strong local catchment as well as the millions of tourists who have traditionally come here and we expect to see again as we come out of lockdown.
“The town’s shopping streets and its many places to eat and drink are an integral part of what it offers both locals and visitors. As a manager of a number of properties across Stratford, we believe we have an important role to play to ensure that those properties support business uses which can enhance the economic vibrancy of the town and help us fulfil the trust’s
core function. A crucial part of that strategy is ensuring that properties are fulfilling the
right purpose.”
Hotel use is again the driver for unlocking the potential of a former House of Fraser store in Lincoln where the repurposing team has been working with Patrizia to bring the redevelopment opportunity to market.
Entwistle comments: “As these examples show, we believe that the repurposing process has to be end-user led. Without that there are dangers that you can head down the wrong route with a project.”
Within four months of going to market at the end of 2019, Shirley had been sold to a care home operator and having secured 11 offers for Wigan, it was sold in early 2021 unconditionally to a residential developer. Greg Styles reports: “The properties represented a range of challenges as two were freehold and two were leasehold and they varied greatly in terms of location. Part of bringing properties like this to market is to be able to demonstrate potential new uses and make it easier for bidders to reimagine the assets.
“We devised a co-ordinated marketing campaign for all the properties, with bespoke targeting for each individually. We then pursued an active market-led disposal strategy. Within four months of going to market at the end of 2019, Shirley had been sold to a care home operator and there were 11 offers for Wigan from residential developers. We are also in discussions with leisure occupiers on Swindon and Crawley, with progress only slowed by the pandemic.”
As these examples show, the repurposing process involves many possible new uses and that in turn requires a wide range of consultancy skills to help the market envisage what the future for assets may be.
Greg Styles observes: “When you’re looking at these transformational projects, you really need an adviser who can provide both market-led occupational advice across all sectors and in depth development expertise, combined with support from planning and building consultancy teams, and that is where we come in”.
