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Constructed in 1982, Queensgate Centre is a fully enclosed two level
shopping centre providing approximately 75,000 m² (807,000 ft²) of
retail accommodation anchored by John Lewis, Waitrose, Marks &
Spencer and Bhs. The centre provides a further 127 shop units and
2,300 car parking spaces. The property generates a total net rental
income of approximately £16.6 million per annum and is 15%
reversionary.
Hammerson and Norwich Union now own
the centre through a 50:50 joint venture. The parties have worked
together over the last three years in partnership with the City
Council and plan to carry out a major expansion of the centre by
redeveloping the adjacent site at North Westgate, a planning
application for which will be made during 2006. Part of the land to
be redeveloped is also owned by the joint venture. Hammerson will be
the asset and development manager for the joint venture. The
existing centre will also be subject to a major refurbishment.
The extension will provide
additional accommodation of approximately 60,000 m² (646,000 ft²),
including a new shopping street leading from the existing Queensgate
Centre to a new anchor store. The scheme will also incorporate
restaurant and catering accommodation around a new city square,
together with residential accommodation and an additional 900 car
parking spaces. Following completion of North Westgate, the
Queensgate Centre will total approximately 135,000 m² (1,450,000
ft²), with 3,200 car parking spaces, making it one of the largest
retail centres in the UK.
John Richards, Chief Executive of
Hammerson plc, said: "This acquisition reflects Hammerson's strategy
of investing in dominant shopping centres in strong retailing
locations. We see scope to improve this prime asset through a
combination of pro-active management and the development of
additional retailing accommodation to address the needs of retailers
seeking representation in the City. Peterborough's population is
growing at one of the highest rates in the UK, making it an
extremely attractive city in which to invest."
Ian Womack, Managing Director
Property of Morley Fund Management, which acts as Asset Manager on
behalf of Norwich Union, said: "Morley Fund Management has been
working closely with Hammerson on the future development of
Queensgate for the last three years. This partnership combines
Morley's fund management leading edge expertise with Hammerson's
pre-eminent track record in property development and, we believe,
will unlock significant value for our clients."
Councillor Ben Franklin, Leader of
Peterborough City Council, said: "The City Council has been working
with Hammerson and Morley on this scheme for some time and will
continue to do so. We have been impressed with the commitment of
Hammerson and Morley in developing their North Westgate plans with
us over the last three years. We see Hammerson's investment in the
City as a significant step forward in achieving a key element of the
City's masterplan and are delighted that Hammerson has joined Morley
in this joint venture given its unrivalled track record of
regenerating city centres."
November 2005 |
