Regeneration specialist realises profits in major retail scheme – even before it’s built

A specialist regeneration developer and investor is enjoying profits on a major new scheme in Staffordshire – even before it is built.

U+I said its latest joint venture agreement with a consortium managed by McArthurGlen to deliver a £160m designer outlet in Mill Green, Cannock, was now unconditional.

I an update to the markets, U+I said it had recognised profits for the scheme, as outlined in its full year guidance.

The company has an option to retain a 12.5% stake in the completed project, which would be held in its investment portfolio.

The 26,500m² shopping village, which is expected to open i spring 2020, has already been dubbed ‘mini Bicester’.

Work will take place in two phases and will include improvements to the local road infrastructure.

Phase one will feature more than 80 stores plus restaurants and cafes, a children’s play area and 1,400 parking spaces.

The centre is expected to be a catalyst for growth in the area, generating more than 1,000 jobs and increasing visitor numbers.

Matthew Weiner, Chief Executive of U+I, said: “Our realisation of profits at Cannock is another significant achievement for U+I and we remain on target to deliver £65-70m of trading and development gains in FY18.

“This exciting project to develop a 35-acre greenfield site into an easily accessible designer outlet village will deliver a vibrant mixed-use destination and stimulate the local economy.

“We will also benefit from the long-term performance of the asset through the retained stake in our investment portfolio.”

U+I has a £6bn portfolio of complex, mixed-use, community-focused regeneration projects including a £145m investment portfolio.