Regeneration nation
Published: 01 February, 2007
While the major regional centres such as Cardiff, Liverpool and Manchester have led the way when it comes to urban regeneration, the challenge for developers has now moved down to the next tier of towns.
GVA Grimley's Steve Norris points out that developers are naturally risk averse and as such most of the major development has been concentrated in Britain's top 50 to 100 centres. Recent research by the BCSC entitled Future of Retail Property: In Town or Out of Town? indicated that almost all the top 50 centres have benefited from major town centre development or regeneration schemes. Norris says that the challenge for the next 5 to 10 years is to spread the benefits of regeneration to the 'less sexy' centres, labelled by some as the 'crap towns'. "The risks are potentially greater than the larger centres," says Norris, "but the returns could be impressive if the right schemes in the right locations, with the right anchors and tenant mix can be delivered."
Norris explains that one of the biggest challenges for local planning authorities is the identification and allocation of development sites in their town centres. "Most of the more obvious 'easier' sites have been developed, and local authorities and developers really need to be more creative about how they deliver town centre development in the future," he says. "Councils will increasingly need to use their CPO powers to assemble sites and work in partnership with developers to make town centre developments happen.
"Where no sites are available in town centres, then the extension of town centre boundaries and/or 'breaking the collar' of the ring roads that constrict many of our centres will be necessary."
Andrew Pepler, an associate with Donaldsons, adds that one of the big issues of urban regeneration is bringing a mix of developments together on difficult sites, which is why many schemes take so long to come to fruition.
He points to Corby, in Northamptonshire, as a fairly unique regeneration project in terms of the speed in which it is being delivered. Completion of Land Securities' 175,000 sq ft Willow Place, a brand new retail development in the town centre, is expected in October, but further opportunities for development could include a phase two, a leisure quarter and regeneration of other prominent town centre sites.
Pepler says: "The benefit there is that Land Securities own quite a lot of the town centre and they've seen the opportunity with that ownership that they can develop a new offer in a town centre that's in need of regeneration. The ownership issue doesn't hold them back."
Development director at Land Securities Mark Rymell says the company bought the site through a corporate acquisition in July 2005, started on-site in June 2006, and with opening set for October, the development has been fast-moving.
"We think Corby has enormous potential, which is why we've decided to invest in the town centre," he says. "It has a 50,000 catchment and the population is set to double through some very innovative and expansive residential schemes that are on site now, so there's many forms of regeneration taking place and we think there's a great opportunity for retail in the town, which has been poorly served over the years."
Letting agents Leslie Furness and Chase & Partners have already secured deals with anchor tenant TK Maxx. Other tenants include Arcadia, which has taken three units, New Look which has taken a 15,000 sq ft store, WH Smith and Superdrug.
Willow Place is expected to move Corby up the retail hierarchy by 150 places.
In Bracknell, the two major town centre land owners, Legal & General and Schroder Exempt Property Unit Trust, which joined forces to form the Bracknell Regeneration Partnership in 2003, have put into action Bracknell Forest Borough Council's proposed master plan for the whole town centre.
The £750m mixed-use scheme, developed by BRP, in close collaboration with the council, has received outline planning permission. The plans include over 600,000 sq ft of new retail space, 160,000 sq ft of new bars, cafés, restaurants, leisure and entertainment facilities, a food store, 667,000 sq ft of new and replacement business space and 1,000 homes. The centrepiece of the new retail development will be the Bracknell Eye - a dramatic covered town square providing retailing, leisure and apartments in a landscaped setting.
Asset manager Claire Juniper adds: "We're unusual in owning a town. It allows for different ways of thinking about things and we have an investment in the community. The way we've set it up, we have a 100 per cent dedicated team."
The first phase of construction is due to begin in the first quarter of 2008, with completion expected in 2012, but the town is already benefiting from new retailers, who have quickly realised the benefits that are to come from the planned development. Over the last two years Bracknell has welcomed 27 new retailers to the town. The most recent openings have included Orange, Shu Time and Bay Trading, with Dolcis as a concession. Dorothy Perkins has also shown its confidence in the town by relocating to a store some three times larger.
The complex and lengthy process of successfully delivering major urban regeneration schemes can be facilitated through the development of a strong relationship between the developer and local authority.
Eden High Wycombe is being delivered by a joint venture between Multiplex and Aldersgate Investments. The 825,000 sq ft scheme will dramatically reposition the town as a regional shopping and leisure destination, demonstrated by a significant jump in CACI ratings from 96 to 46th in the UK rankings.
Opening in spring 2008, Eden will comprise of 55 brand new units, anchored by a 141,000 sq ft House of Fraser and a 103,000 sq ft Marks & Spencer, and eight restaurants. The scheme will also include a cinema, bowling alley, a new library and public square, as well as 48 residential apartments. Additonally, Multiplex is undertaking a complete refurbishment and extension of the existing Octagon shopping centre.
Alan Peach, director of retail development at Multiplex, strongly belives that Eden can be held up as an exemplar of how quality long-term public and private relationships can lead to the successful delivery of major town centre regeneration schemes. "The benefit of longer-term partnerships are numerous," he says. "Both parties can gain mutual respect and confidence over the years and benefit from continuity.
"Joint problem-solving techniques can be adopted that cut down the lengthy process inherent in developing town centre schemes."
The combined efforts of Multiplex and Wycombe District Council have successfully broken down many barriers that can hinder successful development. "To take a £300m town centre regeneration project from concept through to the second half of the construction programme in just over five years, with 85 per cent of the scheme already let, is testimony to the spirit of true partnerhsip that has prevailed in High Wycombe," adds Peach.
The Centre, Feltham recently won a BCSC In-Town Retail Scheme Award in recognition of Thornfield Properties' regeneration work, completed in 2006.
The development has transformed the town from a depressed and derelict shopping complex into a modern and thriving destination, despite public cynicism that the town centre could ever be revived. Prior to construction the tenant mix was wholly biased towards convenience shopping while the majority of units were vacant and shuttered.
In contrast the new scheme is 98.4 per cent let and comprises 300,000 sq ft of retail, 807 residential units, a library and community centre, a medical centre, a 115-bed hotel, 15,000 sq ft of office space, restaurants and bars, and a day nursery. New retailers include Next, Matalan, Sports World, New Look and Peacocks, which has reported trade to be 100 per cent above target. Phones 4 U has recorded sales 200 per cent above its target.
The centre has also experienced phenomenal rental growth, taking the town from £15 to £25 zone A in 2003 to £70 to £80 today.
Thornfield Properties is currently involved in another mixed-use retail-led regeneration project in Bury, Lancashire. The Rock is set to completely revolutionise the town centre when it opens in 2009.
Vue Cinemas has been announced as the leisure anchor at the 740,000 sq ft scheme, joining Debenhams, which is the retail anchor. The development will also encompass a number of MSUs, up to 50 leading brands, as well as cafés, restaurants, various leisure facilities, 1,000 car parking spaces and approximately 170 apartments.
Through this scheme, Thornfield's intention is to breathe much-needed life back into the rundown area of the town centre, promoting daytime living, evening economy and town centre culture.
