The considerable value of food stores – some of which can be worth around £20 million – is not only creating development activity in a challenging market, but also acting as a catalyst for much wider regeneration, reports Paul Brewer, director and head of retail at GVA’s Birmingham office.
Paul Brewer comments: “New food stores typically require between five to eight acres of land and have a value of between £1 million – £2.5 million per acre. This is the one of the highest land values per acre for any development activity, enabling the value of the rental payments, or the sale of the land, to trigger wider regeneration activity in the immediate area and the wider community the new stores will serve.”
At Longbridge, an 85,000 sq ft Sainsbury’s store will anchor the wider £70 million town centre development, which received planning permission in July 2011.
In Telford, a 100,000 sq ft ASDA store development is delivering significant public realm benefits to the town centre and contributing towards the creation a new South Water leisure quarter.
The redevelopment of Stafford town centre, which is focused around the Kingsmead and Riverside development proposals, is benefitting from the value created by a Morrison’s store. A planning decision is imminent for both redevelopment sites.
GVA’s sale of the 13 acre former ATP automotive site in Hednesford to St. Modwen has created the regeneration and rebirth of the area with the development of a new town centre, anchored by a new Tesco store.
A total of three new food stores are being developed in Wolverhampton. A new Sainsbury’s store is incorporating the regeneration of dilapidated and derelict listed buildings in the centre of the city. While a new Tesco store will be developed at the former Royal Hospital site, which will incorporate further space for additional retail premises. It is expected that three hours of free parking will be granted by the supermarket operators on both sites to encourage shoppers to spend additional time – and money – in the town centre.
Paul Brewer adds: “Local Authorities, developers and supermarket operators are working better than ever before to deliver wider regeneration benefits to local communities. It is often the case that without a new food store, there would be no catalyst to kick-start such activity. Food stores represent a significant proportion of development activity taking place across the country at the present time.”