Built in 1992, the Buttermarket Shopping Centre in Ipswich was once a thriving retail destination yet in recent years the development has seen a distinct drop in footfall. However, new owner Capital & Regional is hopeful that a modernisation plan will encourage shoppers back through the doors and will allow the centre to return to prosperity once more.
Capital & Regional, along with joint venture partner Drum Property Group, acquired the freehold of the 230,000 sq ft complex from previous owner PR Ipswich Ltd for a total of £9.2 million. The centre has 23 retail units with tenants including popular high street names such as Boots, TK Maxx and New Look, although the drop in footfall over recent years has seen the vacancy rate within the complex soar.
Capital & Regional chief executive officer Hugh Scott-Barrett hopes that the involvement of developer Drum Property Group will ensure the centre meets its full potential for local consumers.
He says; “We have a track record of revitalising in-town shopping centres, through improving the retail and leisure offer, the experience for shoppers and forging strong links with local communities.
“We believe there is a tremendous opportunity to re-position and modernise the Buttermarket Shopping Centre, and look forward to working with our partner Drum Property Group, the local authority and local stakeholders to advance our plans in the coming months and years.”
Before the centre was placed on the market, the local council had already granted outline planning permission for the previous owner to transform it from a purely retail led destination into one which offered consumers both leisure and restaurant facilities as an added benefit. However, last month reports emerged that these plans had fallen through, perhaps prompting PR Ipswich Ltd to seek a buyer.
One of the greatest issues which threatened the Buttermarket Shopping Centre was the onset of the recession and ensuing retailer administration, which saw the vacancy rate climb as brands including Benetton, Athena and Covent Garden General Store vanish from the high street. However, the problems did not begin there, as the centre previously lost four consecutive anchor tenants – Owen Owen, C&A, Allders and T J Hughes – in quick succession.
Although plans have not yet been revealed by the partnership regarding the future of the centre, it is safe to assume that the previous intention to introduce leisure and hospitality aspects will remain strong goals. This follows the current trend for shopping centre redevelopments and may prove vital in Ipswich, where competition from surrounding towns and cities is strong.
Managing director of Drum Property Group, Graeme Bone, says; “Working in partnership with Capital & Regional on the Buttermarket Shopping Centre provides Drum with an exciting opportunity to deliver a superior shopping and recreational experience for the residents of Ipswich.
“Our approach to risk-controlled development and proactive asset management is ideally suited to the Buttermarket project and we look forward to working with all the local stakeholders in delivering a much improved centre they can be proud of.”
