Watermark ‘ready within three years’ (From Daily Echo)
When news happens, text SDE and your photos or videos to 80360. Or contact us by email and phone.
Watermark WestQuay will be completed by 2013 says Southampton City Council
11:37am Wednesday 24th February 2010 in News
Watermark ‘ready within three years’
A FLAGSHIP £150m extension to Southampton WestQuay shopping centre is on track to be completed within three years despite the developer prioritising overseas projects.
Council chiefs remain confident Hammerson – the firm behind the ambitious Watermark WestQuay development – will begin work next year after announcing it will look to complete major projects in France before those in the UK.
Hammerson said it saw stronger improvements in the economy across The Channel and will look to invest £430m in projects in Paris and Marseille with UK construction jobs on hold until at least 2011.
However, the property giant last night moved to confirm the strategy would not alter its vision for Southamp-ton, which includes plans for new shops, restaurants, bars, a luxury 14-screen cinema and the creation of 1,000 jobs.
The company has now signed a legally binding deal with Southampton City Council over the privately funded scheme.
A spokesperson for Ham-merson said: “Work will continue on Watermark WestQuay, as it has done over the past 12 months on the planning and design of the scheme and discussions with key retailers.
“Signing the development agreement is an important part of the process and the next stage will be to secure anchor tenants for the retail and leisure elements of the scheme.
“The recession has had an impact on tenant demand which is vital to the success of our schemes and although the UK reported modest growth in the last quarter of 2009 the retail market currently remains mixed.”
Southampton City Council’s deputy leader Royston Smith, who has called the scheme the “jewel in the crown” of the city’s developments, said the firm had briefed the council on its French interests but said that Southampton was “still a priority” in the UK. “They gave us no reason to doubt their sincerity,” he said.
Cllr Smith maintained Watermark WestQuay could be completed by 2013 under an “indicative” two-year building timetable, although Hammerson have yet to give such a commitment.
Using the city’s medieval walls as a backdrop and a focus, the 12-acre centre is organised around a 3,500 sq m public plaza, complete with water features, designed to host a range of events from farmers’ markets to live music and entertainment and even an extension of Southampton Boat Show.
Comments(4)
Jammy Donut
says...
4:38pm Wed 24 Feb 10
Lord Ikea
says...
10:38pm Wed 24 Feb 10
shirleybanister
says...
11:19am Sat 27 Feb 10
Jammy Donut says...
2:35pm Wed 24 Feb 10
The chief executive of the property giant Hammerson yesterday ruled out any new projects in the UK until the fragile economic recovery gathers pace, adding that Britain was, in effect, still in recession. In contrast, the group said it was pursuing projects in France where the upturn is stronger.
The Anglo-French Reit, which owns the Bullring shopping centre in Birmingham and the Brent Cross site in north London, said that France had emerged from the downturn faster and stronger than the UK. Two weeks ago, data showed that the French economy grew by 0.6 per cent in last three months of 2009, compared to 0.1 per cent in the case of the UK.
"If you look at the two economies, France has come through this recession in better shape than the UK, and when one converts that through to the property market, we're seeing a similar picture," Hammerson's chief executive, David Atkins, said.
"We've got better tenant demand and, ultimately, the schemes are more viable. Consumer and bank indebtedness is much lower in France and, frankly, the UK is still in recession in an all but technical way."
The Department for Business, Innovation and Skills cited yesterday's Global Investment Conference as evidence that the UK was a prime location for investment. A spokeswoman said that even at the height of last year's financial crisis, 34 overseas companies were investing in the UK each week.
Hammerson is expected to start redeveloping its site at 54-60 rue du Faubourg Saint-Honore in Paris and the larger Terrasses du Port shopping centre in Marseille later this year at a combined cost of £430m. The group added that it would only consider new office developments in London if projects are pre-let.
Hammerson does have a number of longstanding projects in the UK that were mothballed at the height of last year's financial crisis, including retail sites at "Eastgate Quarters" in Leeds.
Despite Hammerson's downbeat assessment of the UK economy, the company yesterday reported a 13 per cent hike in adjusted net asset value per share, the key industry measure, to 421p for the six months to the 31 December. The value of the company's portfolio fell 9 per cent to £5.1bn during the course of last year, but strengthened by 6 per cent in the second half, thanks to improved market conditions. "We think Hammerson has reported a strong set of results benefiting from its focus on prime locations, with an increase in like-for-like rental income despite the largest annual fall in retail rents ever recorded by the IPD index," said analysts at Deutsche Bank.
Hammerson's share price fell by 3.5p to 387.4p.