The Royal Quays Outlet shopping centre in North Shields has been put up for sale following the appointment of receivers.
The North Tyneside shopping centre is now on the market with a £4m price tag, after Daniel Hardy and Peter Loveday of commercial property consultancy Sanderson Weatherall LLP were appointed as receivers over the centre. A spokeswoman confirmed they have been appointed to manage the centre and its lettings by a bank, which has not been named, as mortgagees.
Property experts at both Sanderson Weatherall and Knight Frank are now jointly marketing the 137,500 sqft property - which has 55 units and more than 600 car parking spaces - to find a buyer. The receivership comes 17 years after the centre was acquired by WD Limited in conjunction with US investors for an undisclosed sum. Under the new ownership, the managers sought to position Royal Quays as a unique "destination" outlet centre, attracting a new and younger shopper demographic which it said led to a notable increase in sales.
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Recent years have seen the centre innovate its way out of the pandemic. A year ago the centre announced plans to introduce more independent retailers – including first-time start-ups – as part of a scheme to draw in shoppers. A “marketplace” plan was set in motion, amid moves to create a thriving hub similar to Newcastle’s Grainger Market, where budding and established small retailers could trade.
The centre’s manager Matt Dawson devised the scheme to bring variety to the centre, telling ChronicleLive: “The high-street brands are either set in their ways or staying in the same location. This is a concept which gives more independents the chance to start off smaller and simplify the process for them. It’ll also give them the opportunity down the line, if they outgrow the stall, to expand – either in the centre or elsewhere nearby.”
At the time, he said that units were becoming harder to fill with high street names, prompting Royal Quays to innovate to bring in non-retail tenants, including Arcade Warehouse. One such business, however – the centre’s Black Storm Brewery Tap Room – went into administration last month, citing tax bills and turbulence within the hospitality industry as the causes.
Marketing materials for Royal Quays Outlet Shopping Centre, issued by property company Knight Frank, highlight how the centre is well established and that a sale could lead to a “significant repositioning opportunity through an active letting strategy and potential or further development opportunities on the existing site”. Details of all the tenants and the rent they pay are also included.
Opportunities to make changes are also detailed, including the chance to take advantage of planning permission granted in 2022 to create a terrace of four 2,045 sq ft industrial units on a vacant plot of land to the south of the site. Meanwhile, outline planning permission was always last year granted for a new two storey 70 bed hotel. There is also said to be the potential to install ground or roof mounted solar PV, solar car ports and EV charging points to the car park.
In all, the centre has estimated rental value of £957,686 and currently brings in annual income of £464,024 through tenants including Costa, Next, Poundland – which was the very first one in England – Clarks, Mountain Warehouse, The Works and Trespass. The marketing documents also mentions how it has been carrying out a recent drive to bring in new businesses.
Daniel Hardy, of Sanderson Weatherall’s Leeds office, said: “This popular shopping centre has been in the same ownership for 17 years and the appointment of receivers provides an excellent opportunity for a purchaser to build on its success and take it to the next level. We are looking forward to working with current and future tenants to strengthen the centre’s offer to customers and maximise its potential.”
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