New retail lettings improve Shrewsbury centre says UK Commercial Property Trust
PROPERTY firm, UK Commercial Property Trust has said its retail portfolio – which includes Shrewsbury’s Darwin Centre – has shown signs of uplift.
The company, the largest Guernsey-based, UK focused commercial property trust, said in its latest trading update that retail property values were slowing their rate of decline.
“The company’s retail portfolio has begun to turn a corner, with capital value falls decelerating. Across this portfolio, values fell 0.5% this quarter compared with a much larger fall in the previous quarter (Q2 2013: -1.6%),” it said in the update.
It said its shopping centre portfolio continued to be its most challenging sub-sector with a 2.6% fall in value, mainly as a consequence of the reduction of income and estimated rental values at its sites in Shrewsbury and Weston-super-Mare.
However, it added that good progress had been made in improving the income levels at both centres, with a series of new lettings being agreed for the Shropshire centre.
It said the solid performance of its largest retail asset, The Parade Shopping Centre, Swindon, demonstrated gave hope to the whole of its retail portfolio, especially where facilities were supported by ongoing asset management.
“In line with our strategy to stabilise and rebuild income for the Shrewsbury shopping centres, new leases were completed with The Entertainer, Ryman and Lorraine Johnston. These lettings should support an increase in capital value as rent free periods expire,” it said.
It is investing heavily in its Shrewsbury offering, with £150m pledged for the new Riverside scheme, which is based on attracting in a new department store and 50 new shops.
UKCPT submitted a planning application to Shropshire Council earlier this year for a scheme involving the redevelopment of the town’s three shopping centres in (Pride Hill, Darwin and Riverside) into a single, combined centre.
The regeneration project includes the demolition of the existing Riverside centre and the construction of a new 225,000 sq ft centre that will be integrated with the Darwin and Pride Hall centres and provide stronger links to the town centre.
The proposals consist of a 95,000 sq ft full line department store, 50 new shops, 10 restaurants, offices and car parking. Combined, the enlarged centre will extend overall to 480,000 sq ft.
