Lumina Real Estate Capital (LREC) reports that its Times Square retail development in Sutton is on track for completion in Q1 2016.
Lumina acquired the shopping centre in Q4 2013 and despite the project stalling temporarily early this year, when the main contractor Longcross Construction went into administration, the scheme is close to completion.
Jeff Carson of LREC comments, “Times Square is indicative of Lumina’s asset management capabilities and where we can add significant value. This was a non-performing scheme, purchased out of administration at a level significantly below historic value. Despite Longcross being placed into administration, we immediately employed sub-contractors to progress work and minimise delays.
“This is a high street scheme which plays a pivotal role in the local shopping offer and we have worked hard to keep people informed, maintain letting momentum and complete the work to an extremely high standard.
“The site is being redeveloped to create larger retail units, which are attracting major high street occupiers and will bring a broader shopping offer to Sutton. At the same time we have disposed of two high street units, BHS & WH Smith, from the scheme for £8.4m, maximising their value and de-risking our investment.”
Further pre-lets to TK Maxx and Poundworld have been agreed for two retail units within the 228,000sqft scheme and there is significant interest from gym operators in the first floor.
“The deals with TK Maxx and Poundworld have resulted in extensive interest in the remaining units. The completed scheme, which is to be relaunched as Sutton Place in Q1, will have a vastly improved security of income and longevity,” Carson added.
Time Square Sutton was a secondary shopping centre with three individual high street retail investments and a self-contained office block above.
LREC immediately explored change of use options for the office tower and applied for planning permission to provide five anchor stores. It has also identified a small development site to the rear of the property, which lends itself to residential use.
LREC has also re-geared with existing tenants at Times House on new 10 year leases, 5 year breaks, including IMCD and Harvey & Thompson. Times House, which provides 27,000 sq ft of office space, is fully let.
