Redefine International, the FTSE 250-listed real estate investment trust (REIT), has confirmed it has let 30,000 sq ft of space so far this year — leaving less than two per cent of its retail portfolio vacant.
Redefine — which started life in 2002 as the Corovest International Real Estate Fund — owns six shopping centres throughout the UK, including the Grand Arcade in Wigan, St George’s Shopping Centre in Harrow and West Orchards Shopping Centre in Coventry.
Among the high-profile names taking space in its retail sites during the first six months of 2015 are fashion chain New Look, Sports Direct and Costa Coffee.
Sports Direct, which operates more than 500 stores worldwide and is owned by Newcastle United chairman Mike Ashley, has taken a 6,060 sq ft store at Birchwood Shopping Centre in Warrington. A 3,292 sq ft unit at the complex has also been let to fashion retailer Pep&Co and the Card Factory has upgraded to a 1,612 sq ft shop.
Sports Direct’s arrival at Birchwood takes the centre’s occupancy to 95 per cent, with just one of the site’s 48 units remaining empty. In a statement Redefine says the “appetite for space has been such that we are actively exploring expansion options to enable us to meet the demand of retail and leisure brands at Birchwood”.
At the Grand Arcade in Wigan, New Look has transferred from the Redefine-owned Galleries in the town centre to an 8,108 sq ft store on a 10 year lease. Shoe retailer Clarks has also taken a 3,548 sq ft unit on a similar lease at the Grand Arcade where Holland & Barrett will shortly begin trading from its new 4,521 sq ft store.
West Orchards Shopping Centre in Coventry, St George’s and Weston Favell, in east Northampton, have also benefitted from lettings to Footasylum, Holland & Barrett and clothing retailer Yours. St George’s in Harrow has recently undergone a £2.2m refurbishment and a further £200,000 is being invested to upgrade the main entrance to the shopping centre.
“So far this year, we have seen a strong flurry of letting activity which has led to occupancy reaching its highest ever level across Redefine International’s UK Retail portfolio,” commented Redefine International’s property director, Adrian Horsburgh.
“This is the culmination of considerable work from our asset management team, but also a reflection of increasing confidence, particularly among the value retailers.
“In the context of the current market, where strengthening investment has led to a rapid repricing of secondary shopping centres and retail parks, our current focus is on driving value within our existing assets and leveraging opportunities, including leasing events and redevelopment and refurbishment, to drive income and secure a more attractive marginal return on capital,” Horsburgh added.
In a separate statement, the income focused REIT confirmed it has sold a 2,600 sq ft plot at Byron Place in Seaham, County Durham, to Costa Coffee, which will shortly begin construction of a standalone coffee shop. The £55,000 deal is seen as a “strategic transaction” that will help drive passing footfall from the town’s new leisure marina into the shopping centre.
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