The £345.5 million acquisition of Fosse Park by the Queen’s property firm and Chinese government opens up the possibility of the shopping centre’s expansion, writes Business Editor Ian Griffin.
The retail park, between Leicester and junction 21 of the M1, was jointly purchased by The Crown Estate and Chinese state-owned Gingko Tree Investment last week. The Crown Estate will manage the park.
They acquired the 560,000 sq ft site, one of the UK’s largest out-of-town shopping centres, from northern Irish business Foyleside, which paid £360m for it in 2006.
It has been reported Foyleside sold the park as part of a major refinancing.
Earlier this year, it was revealed Fosse Park could expand by a third after three companies, including the owners of the out-of-the-town shopping centre, made bids to buy a key plot of land next to it.
Opened in 1989, Fosse Park has 40 stores and attracts eight million customers a year.
Current tenants include Marks & Spencer, GAP, New Look, Clarks, Boots, Next, River Island, Argos, DFS, Thorntons and Costa Coffee.
It was revealed by the Mercury last month that a Primark store was to open at the centre, replacing the current BHS outlet.
Mr Herbert said an expanded Fosse Park would be able to quickly fill the new space because of the huge demand from retailers looking for premier locations.
“The fact Fosse Park demands such high rents is an indication there’s strong demand,” he said.“It is one of the top two or three retail parks in the UK.”
Rents are thought to be as high as £85 per square foot for a 10,000 sq ft unit.
The Crown Estate and Gingko Tree Investment will each take a 50 per cent stake in Fosse Park.
Source: Leicester Mercury
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