Lakeside and Victoria Centre owner reports strong leasing activity

By

Nigel TAYLOR

Published
Apr 4, 2023

Shopping centres owner SGS, which controls Lakeside in Essex, Atria Watford, Braehead in Glasgow, and Victoria Centre in Nottingham, has reported a strong performance for 2022, claiming occupancy and footfall outperforming its peers.

 
It listed key highlights for last year’s strong gains, with around 100 leases agreed, (including H&M, Next, Flannels, TK Maxx, Calvin Klein, Hugo Boss, Pandora, Zara and other Inditex brands); deals on the former Debenhams anchor units at Lakeside, with M&S signing for the space; and Atria Watford, where Next has opened its largest UK store.
 
At Braehead, Superdrug is opening a new, expanded store this week, with the health & beauty retailer relocating and upsizing to an 11,000 sq ft space, while at Atria Watford, menswear retailer Moss (formerly Moss Bros) has just opened a 2,271 sq ft on the upper mall.

A further 50 deals are in advanced stages of discussion across the centre, it also noted.
 
Occupancy is also ahead of forecast at 86%, with new leases signed during 2022, seeing this increase to 88% once those tenants have moved in. Meanwhile, footfall is eight percentage points higher than Springboard’s benchmark across 2022 as a whole. 
 
It also included the rolling out of its new ‘Retailer Information Portal’, “capturing more comprehensive data around tenant sales, profitability and areas of over-spend and under-spend”.
 
Importantly, the company also updated on strategic priorities linked to its three-year business plan, which has been approved by the group’s investors. The business plan includes more than £130 million of investment in the SGS shopping centres and key tenant relationships. 
 
Steve Gray, Head of European Retail Asset Management at Global Mutual, said: “We saw rent collection stabilise – providing us with a firm financial footing and a platform for growth. While some headwinds remain, we are confident in our outlook, and in the resilience of our market-leading assets.”