The opening of the 1.5 million sq ft Bluewater shopping centre in Kent later this month will mark something of a watershed in the out-of-town retail development that began in earnest in the UK in the 1980s. Planning restrictions on major shopping centres mean that after Bluewater, only one major centre, at Braehead near Glasgow, will be completed before the imposition of a moratorium. No other major centres are planned and developers are now turning towards redeveloping town centre retailing.
Bluewater, which is being developed by the Australian company Land Lease, is probably the most successful out-of-town development in the UK. It is reported to be 98 per cent let at rental levels of up to £300 per sq ft with anchor tenants John Lewis, Marks & Spencer and House of Fraser. Seventy per cent of the centre has been sold to major funds. Planning restrictions on British out-of-town developers, particularly those in the retail warehousing sector, have become so tight that 300 developers, retailers and landlords have recently formed an association to promote their cause.
Out-of-Town Retail Agents Society (OTRAS) intends countering "false claims" by government, the media and town centre protectionists about the out-of-town market. OTRAS says its proposals are soundly based on studies into consumer choice and preferences for out-of-town retailing.
While developers in the Republic may have concerns about political and protectionist opposition, they are, at least, not facing the same planning problems as their counterparts in Britain and the North. Retail warehousing is well established and popular in the North, with its advanced motorway and road system. But developers are encountering difficulties in the lengthy planning process where applications for large retail projects take up to three years - and sometimes more - to process.
Lambert Smith Hampton (LSH) has been retained by a consortium of UK and local developers to market the proposed 200,000 sq ft Newtownabbey Retail Park, which is expected to be anchored by a 65,000 sq ft Tesco Store, with Tesco relocating from its present shop in the adjoining Abbey Centre.
LSH expects the Newtownabbey park to attract new retail warehousing tenants, including purely fashion outlets, in an area where there are already more than a dozen substantial retail warehouses. Rental levels for the 14 units on the Newtownabbey site will be about £14 to £15 sterling.
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