Time for Change
Published: 01 December, 2010
One New Change, the City of London’s first full-range shopping centre, has opened fully let
When Land Securities unveiled its City of London retail and office development One New Change at the end of October, there was a buzz of excitement. The £540m scheme, which forms part of the regeneration of Cheapside, is one of the few shopping centres to open this year and the first major shopping destination in the City.
One New Change has been in the making since 2003 so it was no great surprise that its grand opening on October 28 generated a surge of interest both from excited Londoners and the national press.
The scheme, which overlooks St Paul’s Cathedral, is 560,000 sq ft in total with 220,000 sq ft of retail space - housing both high-end and accessible brands - spread over three floors.
Centre director Robert Goodman is very pleased with how things are going so far. “One New Change is in a stunning location and it’s a big change for the City of London,” he said. “Everything’s going very well.”
Speaking at the opening, Kathrin Hersel, development manager for Land Securities’ London portfolio, added: “This is a very emotional day – it’s been seven years in the planning and it’s amazing to see the shops open.
“One New Change is in the heart of the City and it’s at the forefront of the regeneration of Cheapside. The area desperately needed more shops – now City workers have something more to do in their lunch hour.”
The City has 320,000 workers pouring into the Square Mile on weekdays, 10,000 residents and 6.3 million tourists each year. Despite this there were very few retail opportunities before One New Change arrived on the scene. And its success, particularly among the workers in local offices, was evident right from the start with 20,000 visitors streaming in to the centre on its first day alone.
CB Richard Ellis is joint letting agent for the scheme and has played its part in assuring that the retail element is 99 per cent let. David Kenningham, executive director of CBRE, said: “One New Change is brilliant and bold and will create a new focus for the City.
“The City posed challenges for retailers but once they understood the market they were excited - I think retailers will be very surprised at how well they do here.”
The centre’s 60 units have been snapped up by brands including Topshop, H&M, Reiss, Dune, Swarovski, Hobbs and All Saints.
The catering offer is equally as diverse with chains Nando’s, Sumo, Byron and Zizzi as well as Jamie Oliver’s new restaurant Barbicoa. Champagne bar Searcy’s is soon to open and Gordon Ramsey is expected to open a restaurant next year.
“We’ve had a really positive response from retailers and we’re seeing really high spends which suggests we’ve got the brands right,” said Goodman.
But the mix of locals and a high proportion of office workers and tourists mean that trade can be very different from the average shopping centre.
“There’s huge peaks and troughs,” said Goodman. “On one Saturday 11 brands reported they’d had their best day. Thursdays are also very strong, particularly in the evenings, and we expect Sunday to develop. It’s all very interesting.
“Lunchtimes are very busy,” he continued. “Restaurants do 90 per cent of their business during two hours at lunch - some restaurants are actually finding it difficult to cope, especially takeaway outlets which are experiencing astronomical trade - that’s the nature of lunchtime peaks. They’re working very hard and we’re striving to help them in any way we can.”
Many retailers have been using their new units to experiment with shop fits and concepts and according to Goodman, this practice has ensured that the aesthetics of the whole scheme is just right.
The building, labeled the “stealth bomber”, was designed by modernist architect Jean Nouvel with Bovis Lend Lease taking care of construction. MITIE has been awarded a three year contract worth £6m to provide facilities management.
Nouvel has worked on over 200 buildings in Paris, New York, Madrid and Toyko but had never before worked in London and was chosen by Land Securities after it launched a competition to find a world-class architect for the project in 2003.
The structure has its critics - Prince Charles and others have voiced their discontent that, with its 6,500 floor-to-ceiling glass panes in varying shades of red, grey and beige, it doesn’t fit in with the surrounding historic buildings.
Sustainability has been central in the design of One New Change, which has reduced its carbon footprint by at least 10 per cent - equating to a saving of around 900 tonnes of C02 emissions annually - through the use of renewable sources.
The development has maximised its energy efficiency through the use of geothermal heating technology, allowing the centre to be heated and cooled with ease. As a result, the centre has received an ‘excellent’ sustainability rating under Building Research Establishment Environmental Assessment Method (BREEAM), which measures the environmental impact of buildings.
One New Change also has a roof terrace which opened shortly after the main centre. The viewing platform is a 2,000-sq ft space which will be open to the public from 6am up until midnight. A restaurant and a cafe will open there in the coming months.
As Goodman explains: “The roof provides spectacular views of St Paul’s Cathedral and across the Millennium Bridge to Tate Modern and the construction of the Shard. It will be a great spot for tourists.”
Goodman described the opening of the roof terrace as the “next step” but the centre has already hosted a number of events. There was a number of musical events at the opening ceremony including performances from chart-topping band The Hoosiers, the London Symphony Orchestra’s Brass Ensemble, new girl band High on Heels and renowned DJ Kelly Marie.
And the centre has already had a visit from the City of London’s new Lord Mayor, Hammerson’s regeneration director Mike Bear; a family theatre workshop to coincide with Halloween and a chance for customers to have a consultation with Dragon Den’s star and entrepreneur Richard Farleigh in exchange for a donation to the Prince’s Trust – the charity the centre has chosen to support. There are also upcoming fashion shows from Grazia and GQ.
“We have a number of events planned,” said Goodman. “Part of our role is to bring vibrancy to the area and to develop the number of tourists – we’ll play a leadership role in that.”
According to Goodman, the feedback from retailers and customers alike has been very positive.
“Customers have been saying it’s fantastic and that it’s something they’ve been wanted for ages. Similarly, residents think it’s great because there’s something happening locally now at weekends. There’s no doubt that there’s big demand for great shopping in the area.”
One New Change is certainly leading the way in encouraging a new retail focus in the area. In recent months, 27 retailers, which almost certainly wouldn’t have chosen the spot before, have opened shops in the surrounding streets.
One New Change is one of the few major retail schemes to open so soon after the development void left by the economic crisis and despite a still difficult market early signs of its success are clearly visible. The centre is performing well and playing an important role in the community and regeneration of the City, and for developers it may act as a beacon of hope for stalled projects throughout the UK.
