The Berkeley Group plc and Land Securities PLC - Mixed-Use Development - Portsmouth, Gunwharf Quays
Date: 13 Dec 2000
The Berkeley Group plc has sold to Land Securities PLC a 50% interest in its innovative 50,000 sq m (500,000 sq ft) development at Gunwharf Quays, Portsmouth.
The scheme, which will be owned by the two companies in a Limited Partnership, is being developed as a waterfront shopping and leisure destination on a 33 acre site overlooking Portsmouth Harbour. The price, which will be around £80m, will be paid to the Berkeley Group in tranches, the timing of which will be related initially to the base rents secured and one year thereafter to the level of turnover rents. The final amount payable will depend on the turnover element of the rents achieved.
The Berkeley Group and Land Securities have already worked together on a number of mixed use urban regeneration projects including schemes in London and Birmingham.
With excellent transport links provided by road and adjacent rail, coach and ferry terminals, Gunwharf Quays aims to become the UK’s premiere waterfront shopping, eating, leisure and day-out destination. Gunwharf Berths, which will be the setting for the finish of the world famous Tall Ships Race and the Times Clipper Race, together with the existing nautical attractions of Portsmouth Harbour, will form the magnificent backdrop to this unique destination.
The development includes 15,900 sq m (171,000 sq ft) of designer factory outlet shopping, 13,755 sq m (148,000 sq ft) of leisure, 7,937 sq m (85,400 sq ft) of restaurants and bars, 3,253 sq m (35,000 sq ft) of offices and 2340 parking spaces. Adjacent to the retail and leisure development Berkeley is undertaking a major residential scheme that will include 310 new homes. The development also has outline planning consent for further residential, office and hotel development.
80% of the scheme is let or under offer to top name retailers including Gap, adidas, Levi Strauss, Fat Face, Ted Baker, Tommy Hilfiger, Benetton and Gieves & Hawkes. The leisure and restaurant element includes an 11 screen Warner Village cinema, Bowlplex a 26 lane bowling complex and Jongleurs Comedy Club, alongside a wide range of over 20 bars and restaurants including Tiger Tiger, Yates’s Ha! Ha! Bar and Canteen, Pizza Express, Bar Risa, Bar 38 and Ken Homs’ Yellow River Café. With a strategic and intensive marketing plan the objective is to secure Gunwharf Quays’ position in the hierarchy of top shopping and leisure led destinations throughout the UK.
The Berkeley Group plc, Chief Executive, Tony Pidgley, commented “I am delighted that we have formed a partnership with a company of the calibre of Land Securities and I look forward to working with them to ensure the scheme lives up to its full potential.”
Commenting on the announcement Ian Henderson, Chief Executive of Land Securities said: “For some time now our strategy has been to focus on substantial retail led mixed use urban regeneration projects which are dominant in their location, lie close to major transport hubs and benefit from cultural or heritage attractions.
Gunwharf Quays not only fulfils these criteria but it also offers us an opportunity to become involved in an exciting new concept in the UK where occupier success and income benefit from specialist and intensive management in partnership with our retailers and leisure operators, as well as providing good returns for shareholders.”
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