Developer hails progress at Victoria Gate
THE property developer behind the multi-million pound Victoria Gate project in Leeds city centre has announced that the “aspirational development” is already more than one third let.
Hammerson began work in April on the new £150m Victoria Gate retail development which is due to open next Autumn.
The development will house one of the largest John Lewis stores outside of London.
In an interim management statement, Hammerson’s chief executive David Atkins said that the new Victoria Gate development is also drawing interest from other “premium brands”.
He said: “At Victoria Gate in Leeds construction continues on our aspirational development adjacent to Victoria Quarter – Leeds’ leading luxury retail destination.
“The £150m development is now over a third let and we are encouraged by the interest from premium brands that have identified Victoria Gate as a key retail destination within their future store portfolio.”
Atkins added that between July 1 and November 9, Hammerson has witnessed improving “consumer and occupier market conditions” in Britain – although its operations in France have remained “subdued but stable”.
It has witnessed sales at its British shopping centres rise by 2.6 per cent, while figures for France fell by 2.8 per cent.
Atkins also hailed both the acquisition of the remaining 40 per cent stake in the Highcross shopping centre, in Leicester, and a successful share placing as other highlights from the period.
He said: “Our investment activity during the period demonstrates our ambition to accelerate future growth which will be further enhanced by our extensive development pipeline where we have continued to make good progress.
“Earlier in the year we saw signs of improvement in the UK retail market and since then we have experienced further growth in retailer sales, tenant demand and rental values in our winning retail locations.
“We completed a successful share placing, raising proceeds of £399 million before expenses, which were principally used to acquire the remaining 40% interest in Highcross in Leicester, make further investments in the fast-growing outlet sector and provide additional capital for our development pipeline.”
The detailed designs for Victoria Gate include a casino, a multi-storey car park for up to 800 cars, Victoria Gate arcade with 30 stores, restaurants, cafes and leisure space.
The first phase of the development is expected to deliver up to 1,000 retail and hospitality jobs as well as 1,000 construction employment opportunities.
Hammerson is working with construction contractor Sir Robert McAlpine and key partner Leeds City Council to deliver the scheme.
