The manager of Royal Quays Outlet shopping centre has stressed that it is ‘business as usual’ while a buyer is sought for the North Tyneside complex.
It was revealed yesterday how the North Shields shopping centre and its 55 units has been put on the market with a £4m price tag, after going into receivership. Daniel Hardy and Peter Loveday of commercial property consultancy Sanderson Weatherall LLP were appointed as receivers over the centre by a bank, as mortgagees.
The receivers said they replace WD Limited, which managed the Royal Quays on behalf of the owners – North Shields Investments Properties Limited, an overseas entity registered in Jersey. The receivers said they decided it was “appropriate to terminate WD Limited’s involvement and appoint Sanderson Weatherall’s Newcastle office to manage it more strategically”.
Read more: 10 questions for Alice Hall of Rowen Homes
While agents at both Sanderson Weatherall and Knight Frank are marketing the 137,500 sqft property, centre manager Matt Dawson has stressed that it is very much business as usual – and that the future looks bright. In a letter posted on social media, he said: “The centre did go into receivership in mid-January, and out of respect for our tenants and everyone that works at Royal Quays, everyone was Immediately notified as we knew this news would eventually break out and create a lot of questions. The article has come as no surprise to anyone here as everything has been continuing as normal for three months now.
“With the centre up for sale, this isn’t bad news! The place is not closing. No houses are going to be built. The land is useless for that. It has nothing to do with high rents and pushing rents up. We have done what we can for businesses that have been here (within reason) to benefit them and the centre.
“Many other centres have been through the same situation and have been bought out and continued as normal. Retail has changed everywhere within the past 10 years due to online, Covid, shopping habits, cost of living, plus others. The centre is up for sale and the future buyer will be gaining many great businesses and tenants. We support each other like a family and we all want the best for the centre, and for every customer who visits us. We hope the future buyer will be as passionate as every one of us here as there is a lot of potential.
He added: “We are in very capable hands with the future looking bright. Please keep the word out that the centre is not closing, everything is trading as normal as this is damaging for every business here! Thank you for all your continued support!”
As well as 55 units, 600-plus parking spaces and annual income of £464,024 – through tenants including Costa, Next, Poundland, Clarks, Mountain Warehouse, The Works and Trespass – new owners could ring in a range of changes. The Royal Quays site has planning permissions in place a two storey 70-bedroom hotel which new owners could bring to fruition. The site was also granted permission last year to build a terrace of four industrial units on a vacant plot of land to the south of the site.
Retail consultant Graham Soult agreed that the move into receivership marked a positive step: “In many ways this is good because if someone else can own the centre, someone a bit more local, it could allow Matt to really take forward his plans. Ultimately it’s a good asset. It’s got some good businesses there and it is a viable centre serving that community but also being something people will travel to again because it’s got things you can’t get anywhere else. It has decent national brands and interesting independents, which is the way to go.
“Being where it is, I don't think it can really compete with Dalton Park but it can reinvent itself to be something really successful and centre manager Matt is a good part of the way there – in a way I’m excited because if someone new can embrace that and let Matt unleash his potential then it could be a really successful scheme.
“It’s also not that unusual for shopping centres to go into receivership. The important thing to say is just because a centre goes into receivership it doesn’t mean that a centre is going to close. On the contrary, it usually provides an opportunity for someone with new ideas and more in tune with a place to come in.”
READ NEXT
- Atom Bank eyeing major fundraising step, reports claim
- People on the move: key North East appointments and promotions
- Greggs reports significant progress on its 2025 sustainability goals
- Newcastle's hedgehog lab acquires York's Netsells following £6.3m investment
- Read more North East business news here
