Question:
When the new shopping centres opened recently in Bracknell and Oxford approximately 25% of the units were vacant.
To date only one retail unit has been pre-let in both Peach Place and Elms Field.
What can be perceived as lack of confidence in the Elms Field development has been demonstrated by Wetherspoons, a business one would assume to be in a position to benefit due to its location at the gateway to that scheme approaching from the town centre, announcing it is closing next year.
To make matters worse the Council’s grand idea was to have flagship business’ at either end of the town centre to encourage footfall at the smaller units when shoppers’ walk from one to the other. The closure of M&S wrecked that plan.
Taking all these factors into consideration when will the council be announcing that the Elms Field scheme is being abandoned and that £80 million is not going to be gambled on a white elephant?
Minutes:
When the new shopping centres opened recently in Bracknell and Oxford approximately 25% of the units were vacant.
To date only one retail unit has been pre-let in both Peach Place and Elms Field.
What can be perceived as lack of confidence in the Elms Field development has been demonstrated by Wetherspoons, a business one would assume to be in a position to benefit due to its location at the gateway to that scheme approaching from the town centre, announcing it is closing next year.
To make matters worse the council’s grand idea was to have flagship business’ at either end of the town centre to encourage footfall at the smaller units when shoppers’ walk from one to the other. The closure of M&S wrecked that plan.
Taking all these factors into consideration when will the council be announcing that the Elms Field scheme is being abandoned and that £80 million is not going to be gambled on a white elephant?
Answer
At the point of the start on site in Bracknell only Fenwick's, M&S and H&M were exchanged together with the Cinema and a number of restaurants. M&S opened early on 27th July with the official opening on 7th September and as of today they are at 95% let.
Similarly when construction commenced on Westgate, Oxford, a 100 unit scheme, the only legally committed occupier was John Lewis Partnership. The scheme opened to the public on 23rd October with 65% of units open and a further 20% exchanged. It is understood that a number of other stores are now under offer and, as they are opening tomorrow, that is pretty useful.
Bracknell and Oxford highlight that only the larger format operators are willing to commit to pre-lets 12 months and more, in advance of opening. Occupiers, increasingly only commit to pre-lets at the earliest 9 months prior to opening, as demonstrated in the leasing programme for both Bracknell and Oxford. The Council is targeting a blend of smaller format high end retailers and local operators for Peach Place.
Positive negotiations are ongoing with a number of retailers and the Council is encouraged by the levels of interest. It is recognised that the target occupiers will only commit closer to opening and the Council remain committed to this strategy as we believe that quality and type of retail will be critical to creating the town that we expect.
We do not believe the scheme represents a gamble and instead offers a good commercial investment. Elms Field has already secured contractual commitments from Premier Inn, Everyman and Aldi, which account for 65 % of the projected Elms Field income. With construction due to commence in January 2018 and a phased scheme opening across to the end of 2019 and early 2020, once again, further occupiers will not commit to pre-lets at this stage.
Wetherspoons have been undertaking a rationalisation of their estate across the UK over the last 12-18 months and it is understood that the decision to close the Gig House is part of a wider corporate strategy.
The M&S store provided a limited food and general merchandise offer, by comparison to a full line store and it was questionable whether it was fulfilling an anchor role. Whilst regrettable, the closure provides an opportunity to secure other operators for this end of town which could make better use of the space and draw people back to Wokingham.
Supplementary Question
It is reassuring that you have some optimism about the plans for Elms Field, but at the other end of the town, we haven’t heard what is going to happen to the M&S site. Is there a plan or was it bought on a whim?
Supplementary Answer
I think that I have just answered that. There are a number of options and further announcements will come in due course.