Multi Development UK Ltd has secured department store Debenhams to anchor the £350 million Southgate regeneration scheme they are developing in joint venture with Morley Fund Management in the centre of Bath.
The retailer will trade from 125,000 sq ft (11,600 m²) over four trading levels and will be located at the corner of Manvers Street and Dorchester Street in the world heritage site. The store will be Debenhams’ first in the city.
Debenhams is taking a 25-year FRI lease of the 125,000 sq ft anchor department store, which forms part of the 600,000 sq ft Southgate redevelopment scheme in Bath. Department stores are under represented in Bath and the letting to Debenhams means shoppers will have access to one of the country’s leading retailers. It also means more jobs for locals, which is good news for the community.
The announcement comes just a week after Morley and Multi signed a joint venture to regenerate the 8-acre site. Southgate is Multi ’s first UK property investment since the announcement that the company would be de-listing from the Dutch stock exchange to become an investor/developer.
Multi will retain ownership of the completed scheme jointly with Morley. The total investment value of the scheme is estimated at over £350 million.
Phil Monaghan, Property Director at Debenhams today said “Bath is one of the largest UK centres without a Debenhams department store and after many years of trying to secure representation we are delighted that we will now be able to bring a full range store to the city as part of the Southgate regeneration.”
Following the anchor letting, marketing of the other unit shops has gone into full swing. The prestige attached to a presence within the City of Bath and the scheme’s unique ability to provide well configured, good sized modern units signifies that the scheme will let well.
Commenting on the news Paul Sargent, Multi UK Managing Director said: “Securing Debenhams signifies a positive beginning for Multi’s leasing strategy for Southgate. We are already experiencing strong demand from retailers who don’t have representation in Bath as well as retailers in the city who crave the larger more modern floor space we’ll be creating.
Multi is committed to delivering Southgate within the shortest possible time frame, starting on-site in the New Year. We are sensitive to the issues that have already delayed this long-awaited project and will do everything in our power to deliver the scheme before Spring 2011. Together with Morley we will be focused on ensuring that the aspirations the city has for its retail sector will become reality.”
Richard Jones, Head of Life Funds at Morley Fund Management, the project’s cornerstone investor commented: “We have been working closely with Bath & North East Somerset Council to find a high-quality developer and investor to deliver a world-class project in one of Europe’s most beautiful historic cities. Morley is pleased to be able to invest in local economies in this way and particularly in a scheme that will reflect Bath’s historic Georgian architecture.
The leasing to Debenhams is welcome news that adds positive momentum to the project. Multi has the proven ability to construct complex projects in sensitive environments making them an ideal party for both Morley and Bath & North East Somerset Council to work with. We look forward to Multi delivering a world class retail quarter that will provide a new and exciting retail and leisure experience to residents and visitors alike.”
Cllr Colin Darracott, Executive member for economic development said: “I am delighted that Multi Development is partnering Morley to regenerate the Southgate area of Bath, particularly now that Debenhams is to be anchor store. We’ve all wanted, for a long time, to see the removal of these ugly relics of 1960s and 1970s brutalism, and the replacement with more suitable and more economic buildings and spaces. Southgate is the first, very important stage on the development journey to deliver the vision for Bath.”
Development Area
The regeneration scheme will significantly improve Bath’s retail offer with 37,567 sq m (404,221 sq ft) of prime retail space including a new department store, 3,522 m² (37,897 sq ft) of leisure space, 2,278 m² (24,511 sq ft) of restaurant space and over 90 residential units. In addition, a modern integrated transport hub including a state-of-the-art bus station and new underground car parking facilities (724 spaces) will be created. Several new public open spaces and streets, including a large central square, will be created. All of the newly created spaces will have tree planting, seating, opportunities for public art and access to public conveniences.
The development area comprises the existing Southgate Centre, Ham Gardens car park, Bath Spa railway station and car park, the bus station, the former Co-op Dairy building and the partly vacant and under-utilized buildings fronting Dorchester Street and backing onto the River Avon, including Churchill House.
Selection
Morley’s selection of Multi Development’s proposal was based on Multi’s development approach, design quality and extensive experience with similar intricate projects in historical cities. With over 100 retail-led mixed-use developments completed in the last 25 years across Europe, Multi is well placed to deploy its experience and knowledge of city centre redevelopment projects of this complexity having worked in Maastricht, Amsterdam, Rotterdam, Antwerp, Paris, Vichy, Lisbon, Aveiro, Girona and many other historic cities.
Concept design
The new development will comprise six blocks, designed by Chapman Taylor, in a classically Georgian style to reflect the unique setting and style of this World Heritage City. The six blocks will be built around a series of landscaped streets and public spaces with a central square providing a focal point for the development.
Multi and Morley expect to be on-site with construction in the New Year, with the total redevelopment completed by 2011.
Profile Multi Development
Multi Development is a subsidiary of Multi Corporation, a group of companies carrying out various disciplines throughout Europe in property development, investment, asset management and mall management. With a Morgan Stanley Real Estate Fund as its new financial partner, Multi has strengthened its position to become an investing developer and move forward on its path to further growth. Multi ’s strategy is and remains focused on developing projects in European countries where significant growth is expected.
Multi Development develops large-scale mixed-use shopping centres, inner-city regeneration projects and offices that are innovative and appealing. The ‘Design & Development’ formula strongly focuses on design quality and Multi has its own design group - T+T Design - for urban development and architectural concepts. Multi ’s projects are internationally recognized for their original and innovative nature, quality of architectural character and profound sensitivity to the blending of urban design. Our developments regularly act as the engine for regenerating a city or region. By respecting the uniqueness of the local culture and market we develop projects with which people can easily identify. Each time, our objective is to create an environment that captivates people.
Multi Development’s activities in 18 countries in Europe are conducted from offices in The Netherlands (head-office), Belgium, United Kingdom, France, Germany, Czech Republic, Poland, Spain, Portugal, Italy, Greece, and Turkey.
In the UK Multi has three inner-city regeneration schemes: Victoria Square in Belfast, Summer Row in Wolverhampton and Southgate in Bath.