Bearmont Capital, a Welsh property developer/Investor and retail specialist, has announced the purchase of The Menai Centre, located on the northern side of the High Street in Bangor, Wales. Back in 2007 the £32m scheme was developed by developers Cathco Property Group and cost £18.5m to build.
The 130,000 sq ft building is currently 80% vacant, and Bearmont Capital plans to focus on rejuvenating the shopping centre and bringing life back to the city's high street.
Rob Lloyd, CEO of Bearmont Capital, has stated that the centre's main challenge is the departure of Debenhams department store the original anchor tenant for the centre and footfall has dropped significantly which has had a major impact on the centre and the high street in general also there has been the rise of online shopping and the pandemic hasn’t helped, which have impacted on high street shopping across the UK. However, Lloyd sees the future of shopping centres as needing to reduce the number of shops in the main high street and adapt to the changing retail landscape.
He said Bangor has the longest High Street in Wales and long term this needs reducing as there is far too much retail in the city centre together with a lot of derelict property also coupled with out-of-town retail units it’s just too much and it is not sustainable so other uses need to be looked at for example assisted living, residential and leisure and bringing in artisan style businesses.
“It’s all about trying to find a balance that works for the local community and also to attract others to the town so it has to be appealing. I like the idea of a diverse offering that not only includes National and regional operators but also going back to artisan-style businesses like the old days might not be a bad idea as other towns have done it successfully; it's all about being creative and exploring new ideas. We have to roll our sleeves up to make things happen the good news we already have a number of units under offer and in legals and it’s important to get some good news out as soon as possible.”
“We maintain close relationships with numerous retailers, which provides us with insights into their expansion plans. A critical aspect of purchasing a shopping centre is ensuring that the initial price is appropriate to accommodate potential shortfalls, particularly as rents decrease. In some instances, rents are decreasing by half due to economic conditions, particularly for historic units where rental rates have been high and are no longer sustainable.”
Bearmont Capital's immediate focus for The Menai Centre is to attract new tenants and offer competitive deals, whilst exploring new ideas to make the shopping experience more appealing for the local community and visitors. The vacant Debenhams unit is key and Bearmont Capital is working closely with the local authority with a view to bringing in a use that will drive footfall and create a hub that will fill the void and in turn will help to revive this part of the city centre and create a vibrant and exciting place for shopping and leisure.
“The local authority and our development team share a common vision for revitalising the city. We aim to provide them with the necessary assurances that we are committed to effecting positive changes, and as always, we will take an active role in enhancing the commercial hub by attracting viable tenants, ensuring reasonable rental rates, and offering more flexible lease agreements.”
Bearmont has appointed Mason and Partners Liverpool office to deal with the lettings and management of the centre going forward and Richard Baddley of Richard Baddley & Co who is the local agent is dealing with the council on behalf of the group.
