Investment into retail commercial properties is beginning to reach pre-recession levels once more, indicating that businesses and individuals are becoming more confident about a long-term recovery within the retail industry. Shopping centres, in particular, have seen a great deal of market activity in the past year, with the latest sale taking place in Newport, South Wales.
The Kingsway Shopping Centre has now been snapped up by Queensberry Real Estate (QRE), the firm behind the neighbouring Friars Walk development. Although the value of the deal has not yet been disclosed, it is understood that QRE purchased the property from former owner the UBS Triton Fund as part of a new joint venture undertaken with partner Bywater Properties.
In total, Kingsway Shopping Centre offers 250,000 square feet of retail space and houses tenants such as Wilkinson’s, B&M and Peacocks among others. Since the end of the recession, footfall levels have risen steadily and this has encouraged retailers to take up space within the centre – something which has had an immensely positive effect upon occupancy rates.
QRE chief executive Paul Sargent hints that Kingsway Shopping Centre may not be the firm’s only acquisition during the current financial year.
He says; “This is the first of a number of similar acquisitions we hope to be involved with over the next 12 months – a strategic purchase that will both complement and leverage off the growing success of Newport City Centre’s retail story.”
“Newport is the obvious place for us to start as investors due to our in depth knowledge of the city and its catchment, and we see great opportunity in the synergies with Friars Walk moving forward.
“Together with Bywater we can deliver a holistic approach to Newport’s retail offer and add further momentum to the wider regeneration of the city.”
QRE is no stranger to the Newport market as it is currently in the process of redeveloping the Friars Walk Shopping Centre just a stone’s throw from its newest acquisition. The 390,000 square foot retail destination is due to be completed in autumn 2015, and speculation is rife that Kingsway will soon become the joint partnership’s next modernisation project.
Director of Bywater Properties, Theo Mitchell, believes that his firm’s involvement in the Kingsway Centre will see Newport’s retail offering further strengthened.
He says; “The Friars Walk development has brought top retailers back into Newport City Centre, and Kingsway is already seeing the knock-on benefits from this renewed occupational demand.”
“The retail offer of the city is set to go from strength to strength.”
“We, together with QRE, are delighted to be part of Newport’s retail led regeneration.”
Do you think owning two shopping centre developments in such close proximity could prove to be a problem for QRE in future, or do you think they will be able to profitably market each of them?
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