Page 18 - Caxtons KPMR 2021

Caxtons’ Property Market Analysis
Retail Performance
Continued
Aylesford Retail Park, while in July Decathlon opened its
first store in Kent, taking the 1,115m2 (12,000ft2) top floor of Tesco Extra superstore in Broadstairs. At Strood Retail Park Hobbycraft will open in a vacant unit, previously occupied by Carpetright, in late 2021.
The Ashford Designer Outlet has seen a strong return to trading following its reopening in April, with the outdoor environment attracting visitors. The extension to the
centre, completed in 2019 is almost fully let. Throughout
the pandemic, the Jasmin Vardimon Dance Company has been based in two units at the Outlet, while its new ‘creative laboratory’ has been under construction on Javelin Way. The development is due to complete in 2022.
Inevitably, Bluewater has felt the pressures of the last 18 months. While vacancies have risen, many retailers with lease options have chosen to retain a presence at the regionally significant centre, but managed costs through moves to smaller units. Signficantly, the centre has also seen several new openings during this most unusual of periods. Zara Concept Store, ProCook, Sleep8 and Moyenne have all taken space over the last year, and in October Amazon opened its 4-star store in the UK in a 325m2 (3,500ft2) unit. The leisure offer has also expanded with the opening of the Hangloose Skywire Zipline.
Despite the uncertain backdrop, there were a number of significant investment transactions across the Kent retail market over the last 12 months. The largest purchase was by Realty Income Corporation, paying £44.95m (NIY 4.4%) for the Asda superstore, Pier Approach Road, Gillingham. Legal & General were the vendor. The same investor sold Fountain Retail Park, Tunbridge Wells for £37.25m to Columbia Threadneedle Investments in May. The 10,618m2 (114,290ft2) scheme is anchored by a 4,645m2 (50,000ft2) M&S. In the
city centre market, U+I sold the 8,824m2 (95,000ft2) Swanley Square shopping centre for around £11m to Evolve Estates in January 2021. The regeneration scheme has consent for 250 residential units. Generally, local authority purchases for income investment have slowed, but Maidstone Borough Council purchased the long leasehold interest in the Lockmeadow Entertainment Centre for £19.1m, with a view to introducing improvements for the benefit of the town, many of which are now almost complete.
While the retail market remains challenging, these investment sales reflect a longer term view of the sector. Letting evidence over the last year underlines the shift
towards experience high streets, with clothing and other traditional high street occupiers trading places with
food, drink and activities. Whether in town centres or
on retail parks, investors are seeking asset management
and repositioning opportunities. Towns that will attract investment will therefore need a longer term vision for
the post pandemic reality. The expansion of the creative industries across Kent’s towns can combine with city centre homes, higher levels of home working and local business growth to deliver dynamic urban environments. For many of the county’s retail centres, the coming 12 months will be a period of story building for the future.
16 Kent Property Market Report 2021
Food Hall, Macknade, Ashford.
CREDIT: MACKNADE