The property group acquired a 92% stake in the shopping complex, after recently designating the best part of £600m to spend on snapping up more assets, despite the majority of landlords having avoided buying large malls in recent years.

Landsec CEO Mark Allan said: “The top 1 per cent of the UK’s shopping destinations provide brands with access to 30 per cent of all in-store retail spend, which is why we continue to see brands focus on fewer, but bigger and better stores in the best locations.”

The property giant bought its share in Liverpool One from a subsidiary of Abu Dhabi Investment Authority, which owned a 69% stake in the complex, and property group Grosvenor, which held a 23% share.

The purchase means Landsec now owns or controls seven of the top 30 shopping centres across the UK.

The move comes as Frasers Group has also been building up its shopping centre portfolio, with the group recently revealing it had snapped up a trio of shopping centres across the UK.

The retail empire took on the 600,000 sq ft Princesshay Shopping Centre in Exeter, Kent’s Fremlin Walk Shopping Centre, and the Olympus Centre retail park in Gloucester’s Quedgeley.

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While the majority of landlords have avoided buying large malls in recent years, Landsec is confident the biggest and best “destination” malls will remain relevant in the future, The Times reported. 

It has designated the best part of £600m to spend on snapping up more assets, some of which it spent increasing its share in Bluewater shopping centre this year.

On Friday (15 November), Landsec CEO Mark Allan insisted he was “confident” in deploying more of the cash during the next six months or so.

He explained: “What we’re not trying to do is buy up various shopping centres that aren’t in that top 1%.

“For the very best [malls], no one is building any more of these things; they cost twice as much to build as they’re worth today, so if you own really good, catchment-dominant retail, retailers and shoppers will concentrate in that space.”

Allan claimed there were various deals the firm was eyeing where he was “confident in deploying capital in the second half” of Landsec’s financial year.

The exec estimates that rents for “prime” shopping centres have dropped by a third from their 2016 peak, but are now beginning to rise again.

Allan said: “Whether it’s brilliantly located central London offices with great sustainability credentials or catchment-dominant major retail destinations, the theme is the same: best-in-class assets are materially outperforming.”

Landsec joins Frasers Group in expanding its shopping centre portfolio, with the group snapping up a trio of malls across the UK in October as it doubled down on growing its property portfolio.

The retail giant acquired Princesshay Shopping Centre in Exeter, Kent’s Fremlin Walk Shopping Centre, and Olympus Centre retail park in Gloucester.

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The Sports Direct owner has acquired the 600,000 sq ft Princesshay Shopping Centre in Exeter from US-based asset manager Nuveen and the Crown Estate after it was put up for sale earlier this year.

It has added Kent’s Fremlin Walk Shopping Centre to its portfolio, which will see a 70,000 sq ft Frasers flagship and a 5,000sq ft Flannels store open this autumn.

The retail giant’s acquisitions also includes the 65,000sq ft Olympus Centre retail park in Gloucester’s Quedgeley.

Frasers Group chief executive Michael Murray said: “The acquisition of Princesshay, Fremlin Walk and The Olympus Centre reinforces our commitment to investing in physical retail.

“Securing properties which serve as the primary retail destination for the community remains a top priority for us. Such acquisitions unlock new growth opportunities for our retail concepts, while revitalising high streets and physical shopping locations up and down the country.

“At Frasers, we strive to re-invent and elevate retail for UK shoppers, bringing the very best brands, environments, and experiences to all our customers across the country.”

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    British Land sells stake in Meadowhall shopping centre after 25 years

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The plans, approved by Croydon Council, include new shops and food outlets as part of a phased scheme to rejuvenate the much-loved local landmark.

Allders was founded in 1862 and closed in 2013 after it fell into administration, but the building remains an important part of the town’s heritage.

It will get a refurbished frontage, with minimal alterations and the redevelopment will introduce five retail units, ranging from 450 sq ft to 1,300 sq ft, alongside two food and beverage outlets, each occupying 450 sq ft. This first phase marks the beginning of a wider initiative to bring new life to the building.

“This is the first step of many in our plan to revive this much-loved Croydon landmark, bringing Allders back into use as a space the community can enjoy, while preserving its heritage,” said Penny Cameron, head of UK development at URW. “We look forward to working with the council to deliver these new shops, services, and food outlets for Croydon.”

Croydon’s retail scene has faced many blows over the past decade. Back in 2013 Westfield and fellow property developer Hammerson entered a joint venture for the £1.4bn redevelopment of the Whitgift Centre and Centrale shopping centre.

The project, which looked to transform the site into a major shopping and leisure destination, faced severe delays, changes in plans exacerbated by the pandemic, and financial hurdles.

Last year URW acquired the remaining 50% stake of the Croydon shopping centre redevelopment from Hammerson, putting an end to the failed deal.

Mayor of Croydon Jason Perry said: “We know how much the landmark Allders building means to our residents and businesses and these plans will help to restore a sense of place and pride in our historic town centre.” 

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New brands joining its centres include clothing stores Dressmode, Maflora and Rebel Clothing, homewares brand Stacks and Pinball Republic, a pinball club partnering with the local council, landlord Unibail-Rodamco-Westfield (URW) said.

Over 200,000 sq ft of renewals have also been secured across both centres, including key brands House of Fraser, Sports Direct, Claire’s, Holland & Barrett, and Waterstones.

Croydon has faced many blows over the past decade. Back in 2013 Westfield and Hammerson entered a joint venture for the £1.4bn redevelopment of the the Whitgift Centre and Centrale shopping centre.

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The project was aimed at transforming the site into a major shopping and leisure destination, but faced severe delays, changes in plans exacerbated by the pandemic, and financial hurdles.

Last year URW acquired the remaining 50% stake of the Croydon shopping centre redevelopment from Hammerson, putting an end to the failed deal.

URW leasing director UK Kate Orwin said: “We have such a wide variety of retailers and occupiers at the Centrale and Whitgift centres from major global brands to local, independents, and today’s news is testament to ongoing confidence in Croydon as a retail destination.”

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The Mike Ashley-founded group is looking to purchase a 50% stake in the Exeter shopping centre from US-based asset manager, Nuveen.

It is also trying to secure the remaining 50% from Nuveen’s partner, the Crown Estate, which currently co-manages the mall.

Should both negotiations come to fruition, it’s thought that Frasers Group will invest approximately £80m to gain full control of the shopping centre.

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Nuveen bought its stake from Land Securities a decade ago and the Princesshay estate generates more than £9.1m of total gross income a year.

This acquisition would expand Mike Ashley’s retail footprint through Frasers Group, adding Princesshay to a portfolio that already includes various prominent retail properties.

The group recently bought THG’s luxury portfolio, including British fashion retailer Coggles and is currently the front-runner to take control of Ted Baker’s UK arm. 

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The property giant sold its 50% stake in the Sheffield-based centre to its joint venture partner Norges Bank Investment Management for £360m.

The sale to the bank, alongside its £7m sale of some land by the joint venture earlier in the year, values the shopping centre’s estate at £734m.

British Land said the transaction is due to complete in July and that it would remain as asset manager to Meadowhall after it was finalised.

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The property group purchased the Sheffield shopping centre for £1.07bn in 1999, before later selling half of its holding to form a joint venture with Norges.

British Land CEO Simon Carter said: “We have had a successful partnership with Norges over many years and are delighted to continue to work alongside them as asset managers of the centre.

“Following the sale of Meadowhall, 93% of our portfolio is now in our preferred segments of retail parks, campuses and London urban logistics.”

In January, Frasers Group was “one of a handful of parties” to have registered an interest in Meadowhall, after British Land and Norges Bank put the shopping centre up for sale last year.

Meadowhall is the fifth largest mall in the UK, with approximately 24m people visiting it each year.

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Fashion brand Lounge Underwear, the online retailer that opened its first store in Westfield London last year, is set to launch in the shopping centre. It has since opened shops in Trinity Leeds, Manchester Trafford Centre, and Bristol Cabot Circus.

Korean supermarket Oseyo is also set to open in the Arndale centre, while The North Face launched a store there earlier this month taking the complex to over 95% occupancy.

Manchester Arndale’s asset managers Global Mutual and M&G are also in talks with several more retailers looking to open in the centre.

The news comes after Manchester Arndale has welcomed various new stores over the past year including Nike, Moss and Dune with Global Mutual and M&G securing over 100,000 sq ft of leasing transactions, including 13 new tenants and 25 lease renewals, such as River Island.

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This leasing activity and the new openings meant footfall rose 6.3% over the period, with over 46m shoppers visiting Manchester Arndale and New Cathedral Street in 2023.

M&G real estate portfolio director Scott Linard said: “2023 was a hugely successful year for Manchester Arndale with the rise in footfall and flurry of leasing activity across the centre testament to the team’s hard work and strong relationships with shoppers and leading brands.

“From working with our long-term occupiers to enhance their stores, to welcoming new names, we hope that 2024 will be an equally exciting year for Manchester Arndale as we look to provide a great retail experience for our visitors and further add to our impressive retail line-up.”

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Retail Gazette rounds up the best new stores of the year that have created a real buzz on the high street.

HMV, Oxford Street 

To the delight of music – and er, pop culture fans – last month HMV reopened the doors to its Oxford Street flagship after a four-year absence.

Spanning across three floors, the 10,500 sq ft space houses the music retailer’s extensive vinyl, CD, DVD and now vast array of pop culture merchandise.

The store, which stocks over 35,000 products, also includes a performance space on the first floor, which promises to host big acts going forward.

The opening marked an important milestone in HMV’s turnaround under Canadian retail mogul Doug Putnam, but was also an important development for Oxford Street.

The district is vying to return to its former glory with many vacancies and downmarket tenants blighting the famous shopping street.

The fact that HMV replaced an American candy shop, which was trading from its former iconic store, was heartening for many.

Sephora, Westfield London

Back in March Sephora returned to the UK after a 17 year absence, opening its flagship store in Westfield London, White City with those wanting to be the first inside facing seven-hour long queues.

The beauty retailer’s 6,000 sq ft store houses a range of products from makeup to fragrance, skincare, haircare, and wellness and over 140 big-name brands including Drunk Elephant, Summer Fridays and Fenty as well as exclusive brands to Sephora UK such as Makeup by Mario and Ariana Grande’s R.E.M Beauty.

The store also features a Grand Beauty Hub, which the business said will “provide memorable experiences for customers”.

Boots Beauty, Battersea Power Station

Earlier this month Boots unveiled its first ‘Boots Beauty’ store at Battersea Power Station in London.

The new 11,200 sq ft shop houses 250 curated beauty brands across skincare, cosmetics, body care, hair care and fragrance catering to all budgets, including R.E.M Beauty, Kerastase and more.

Customers can watch regular masterclasses hosted by leading beauty brands, and visit a Beauty Bar delivering free express services from specialists.

The store also houses a Hair Bar that offers a professional scalp analysis service for support with hair damage and thinning hair.

The sole focus on beauty is a big step for Boots, which has been reinventing its beauty offer in stores for the past few years.

It also shows that the health and beauty retailer is geared up to take on Sephora, which is ramping up its UK expansion.

Footasylum, Oxford Street 

Back in September Footasylum opened the doors to its flagship store at 73-89 Oxford Street, housing 100 motion screens to provide an ultra immersive in-store experience.

The 20,000 sq ft store, trades across two floors, with additional customer service and click-and-collect lockers located in the store’s basement.

Footasylum chief executive and chair, ex-JD Sports boss Barry Bown, told Retail Gazette the Oxford Street site was a brand-building store.

“The new flagship store will take the Footasylum brand, which is all about ‘defying ordinary’, to the next level.”

“I can assure you the store will be a fantastic shopping experience. Throughout my career I’ve overseen the launch of hundreds of stores, and this really will be the most impressive retail space I’ve ever had the pleasure of working on,” he said.

The new flagship store is the latest in a line of Footasylum site openings, as the company continues its ambitious expansion programme.

Uniqlo, Covent Garden

This Spring Uniqlo opened its 1,450 sq m joint store with Theory in Covent Garden.

Located in the heart of the famous shopping district with entrances on Long Acre and Floral Street, the three-floor store houses the fashion retailer‘s menswear and womenswear offering.

The Grade II-listed former Victorian carriage hall features an open courtyard and vaulted glass atrium and also hosts its repair and reuse re.Uniqlo station and its first in-store cafe.

Sainsbury’s, Hook

Sainsbury’s superstore in Hook makes the cut due to its big step forward in energy efficiency.

The 25,000 sq ft store, which opened in May, uses just half the energy of a similar-sized store and 25% less electricity than its most energy-efficient supermarkets.

It operates using 100% renewable electricity without relying on any fossil fuels.

The store also now contributes to the grocer’s target of becoming water-neutral by 2040, with low-pressure bathroom taps and rainwater harvesting, setting the standard for future Sainsbury’s superstores.

On, Regent Street 

As the activewear trend continues to trend throughout 2023, back in February sportswear brand On opened the door to its first UK store on London’s Regent Street.

The fast-growing brand lets in-store technology showcase its high performance sportswear and trainers, with both a robot leg and wind simulator on the shop floor.

Other technology featured within the flagship includes a wind simulator that shows how its windproof, water resistant jackets perform under the elements and more robotic arms that show how the shoes soles and cushioning work.

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Flannels and Sports Direct, Gateshead Metrocentre

Back in September Frasers Group opened its new “revolutionary” stores for both Sports Direct and Flannels at Gateshead’s Metrocentre.

The 50,000sq ft Flannels flagship on the ground floor boasts an expansive new luxury fashion collection from brands including Dolce & Gabbana, Marc Jacobs, Tom Ford and Vivienne Westwood, as well as contemporary brands such as Amiri, Off-White, and Palm Angels.

Its new 50,000sq ft Sport Direct store features specialist sporting areas for running, football, and outdoor, across men’s, women’s and kidswear. It also includes Sports Direct’s new Running concept that it debuted at the Manchester flagship.

Lego, Battersea Power Station

This May Lego opened the doors to its Battersea Power station store as it continued to ramp up its retail expansion plans.

The retailer’s first London branch south of the river boasts a wide assortment of Lego sets for children and adults as well as an interactive Battersea-inspired Lego mural and a 3D model of the power station.

Interactive stations, from build your own figurines to play tables, are featured throughout the store. Shoppers can also find individual Lego bricks and elements on the Pick-A-Brick wall.

Lush, Glasgow

Just in time for Christmas, Lush opened doors to its largest store in Scotland and one of its largest stores globally this month on Buchanan Street in Glasgow.

Extending over the building’s basement, ground and three upper floors, the 20,000 sq ft shop features “experiential concepts” including a Shampoo Bar, Lush parties, and skin and hair care consultations for visitors as well as a vegan coffee shop.

The retailer’s first Scottish anchor store also sells new products such as Lush lifestyle goods including clothing, cosmetic bags, pins and soap dishes.

An additional floor hosting the store’s Scotland-themed Lush Spa will also arrive in February next year.

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