Retail construction will be focused on extensions rather than new build for the foreseeable future according to Capital Shopping Centres, who today provided further detail of their £500 million development programme.
The group is planning significant enhancements to six of its outlets which will present numerous opportunities for retail and fit out contractors.
Announcing its flat half year results in which net asset value per share climbed just one penny – the company said 2012 would be the first year with no significant new openings since the start of the shopping centre industry 40 years ago, with a further low level of committed openings anticipated in 2013 and beyond.
As a result the group announced in its annual report six months ago that it would embark on a major extension programme to enhance the value of its existing assets and it today provided more detail on its progress.
It plans to invest around £50 million at the recently acquired Trafford Centre, including £30m at Barton Square.
An application to part-enclose the central courtyard of Barton Square with a glass roof has been approved and permission has been renewed for the reconfiguration and enclosure for recycling use of two service yards on the south side of the centre.
The management team at the Trafford Centre have now taken responsibility for three other CSC centres - Manchester Arndale and Cribb’s Causeway, Bristol, the two assets jointly owned by CSC and the Prudential, and Braehead, Glasgow - and the group statement said they were “making good progress on taking forward the opportunities for these assets”.
At London’s Lakeside centre around £160m of investment is anticipated.
A planning application is expected to be lodged in late 2011 for a 33445 sq m extension which will create a new department store, around 40 new shops and restaurants and a fully integrated transport hub.
The group’s Metrocentre has received planning for 1394 sq m of new retail and catering space called the MetrOasis.
In Nottingham the Victoria Centre has submitted detailed planning for a 46452 sq m extension that will provide for a new department store, 39 new shops, leisure and catering facilities with a cinema, a new bus station, health club and offices, improved pedestrian linkages and the potential to create 500 new construction jobs.
The outline timetable is for detailed planning consent to be granted by the end of 2011, enabling works in 2012 and construction from 2013 to 2015 with an opening for Christmas 2015.
The extension is expected to cost between £225m and £250m.
In Bromley, design work is underway and a detailed planning application will be submitted later this month for 5 new restaurants in Queen’s Gardens, the Glades.