Schroder UK Real Estate Fund (“SREF”) has signed 22,000 sq ft of lettings at its 60,000 sq ft Meadows retail park in Chelmsford, unlocking an investment opportunity that will reposition the asset in line with the changing needs of consumers. Works will commence in the coming months on the redevelopment with new occupiers targeting an opening in late 2020.
The £3 million reconfiguration of the former 24,750 sq ft Argos will create a new 10,250 sq ft PureGym on the first floor, with TGI Fridays and Cosy Club occupying new 5,000 sq ft and 6,500 sq ft units respectively. The leases have been agreed on 15 year terms. There is one unit of approximately 3,300 sq ft available to let within the new development.
The new occupiers respond to consumer feedback for increased dining facilities and leisure provision while the confirmation of Cosy Club is a milestone in itself, as the first location for the brand in Essex.
The work at The Meadows forms part of a wider picture of investment in this part of Chelmsford where millions of pounds of private funds have reshaped the area, including at the Bond Street redevelopment where John Lewis and Everyman arrived in late 2016.
Works at The Meadows will transform the look and feel of the busy shopping park delivering high quality mixed-use space with a popular tenant line up and bright, modern facades.
Rob Cosslett, Investment Manager at SREF, said:
“Our strategy for The Meadows centres on aligning its provision with its affluent, commuter catchment and providing the right facilities for consumers’ busy lifestyles. Taking a former Argos, creating a net increase of almost 1,000 sq ft of lettable space and securing brands that meet changing consumer preferences is a great result for Chelmsford and meets fund objectives both in terms of rent roll and asset positioning.”
George Oppenheim, Lunson Mitchenall commented:
“We have worked closely with the landlord to sub-divide this former Argos unit to help create the right mix of brands and to make the space more attractive to occupiers.
“This deal represents a great example of how to successfully reconfigure space from retail to leisure, and we feel that these leisure brands complement each other well, creating the right mix for the Meadows retail park.”
SREF was represented by Lunson Mitchenall and Morgan Williams, Space Retail Consultants acted for Loungers (Cosy Club), CBRE for TGI Friday, and PureGym were unrepresented.
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