Monday, February 27, 2023

News: Parkgate Shopping put up for sale


Parkgate Shopping Park in Rotherham has been put up for sale by its owners. Its guide price is just half of the price paid to acquire it seven years ago.

Described as the UK’s second largest retail park, the site comprises a total of 577,837 sq ft of unrestricted retail accommodation in 45 units and occupies a site of 37.5 acres.

Back in 2015, BMO Real Estate Partners (BMO) acquired the park in a transaction worth around £175m. BMO's EMEA asset management business was acquired in 2021 and rebranded into Columbia Threadneedle Investments.

Experts in out of town retail property investments, Staunton Whiteman, has now been instructed to sell Parkgate Shopping.

The client is seeking offers in excess of £80m for the freehold interest in the property with the agents stating: "A purchase at this level will show a net initial yield of 8.50%, after allowing for purchaser’s costs of 6.8%. This equates to a capital value of just £197 per sq ft."

The site brings in some £7.267m each year which equates to £17.92 per sq ft overall.

Sale documents show that, even with the impact of COVID, Parkgate attracted 10.123 million shopper visits in In 2021 and benefits from a catchment population of 438,954 within a 20 minutes drive and captures 31.9% of all retail spend within it.

The park is listed as being 97% let. Recent deals include Poundland expanding into the former Marks & Spencer unit, Popeyes taking over from KFC, a new letting for Wren Kitchens and the Frasers Group developing plans to take on the large vacant unit that was previously used as an outlet for JD Sports Fashion plc's outdoor brands - Millets and Blacks.

A number of current occupiers have also been able to secure "regears" to vary aspects of a lease following the COVID pandemic.

In 1987, Parkgate Retail World opened as part of the regeneration of large areas of reclaimed land formerly occupied by the Park Gate Iron and Steel Co.

The Hercules Unit Trust (HUT), which was advised by British Land and managed by Schroders, acquired Parkgate in a £260m deal from developers, the Stadium Group in 2005, representing an equivalent yield of 5.25%. As part of the same transaction, Stadium acquired Newport Retail Park from Hercules for £60m.

In 2014, British Land agreed to purchase £41m of additional units in Hercules, taking British Land's share to 54.2%, which meant that the trust would become a subsidiary of British Land.

Parkgate Shopping website

Images: Staunton Whiteman


Anonymous,  February 27, 2023 at 1:29 PM  

Wonder what this will mean for the future of the site? The sellers have taken quite a substantial hit on the price they purchased it for, which suggests that they don't see a viable future for the site and have chosen to cut their losses.

No doubt that it will end up in the hands of a hedge fund somewhere!

Anonymous,  February 28, 2023 at 8:38 AM  

Seems to be a fair amount of development going off at the moment with work under way to bring a few empty buildings into use.

Anonymous,  February 28, 2023 at 9:43 AM  

The problem with the development to bring empty stores into use is that it's just to replace existing ones. The new Poundland will leave the old Poundland empty and the new Frasers group store will leave Sports Direct and USC empty.

Anonymous,  March 1, 2023 at 12:31 PM  

Wouldn't be surprised if size of retail park actually decreases,I know there's retail parks in Manchester area that are now deemed outdated (look more modern than parkgate)that are looking at demolition and using land for housing. I would not be surprised if this were to happen.

Anonymous,  March 1, 2023 at 3:38 PM  

A similar and very strong rumour is circulating in parts of Sheffield that Meadowhall is to be scaled back and land across from the tram terminus is to be used to accommodate travellers.

Anonymous,  March 1, 2023 at 4:07 PM  

I would be surprised to see any reduction in the size of Meadowhall given they are actively perusing expansion with the leisure hall development.

Anonymous,  March 1, 2023 at 11:36 PM  

Heard that two major stores are pulling out when their leases are up

Anonymous,  March 2, 2023 at 10:47 AM  

Pulling out of Parkgate or Meadowhall?

Anonymous,  March 2, 2023 at 4:52 PM  

I wouldn't be surprised either,the online shopping revolution is now well underway,more and more shopping is done online,the need for expense retail premisses will end,hence why there's cheaply and quickly thrown up warehousing all over place.

Anonymous,  March 2, 2023 at 10:31 PM  


Anonymous,  March 2, 2023 at 10:34 PM  

There are major retailers signed up for vacant units at Meadowhall that are being announced imminently so there is zero chance it will be reduced in size.

Anonymous,  March 3, 2023 at 1:28 PM  

Think the Trafford centre is reducing retail space too,go more leisure...retail will never return to pre lockdown(massive mistake)levels.

Anonymous,  March 3, 2023 at 3:53 PM  

Time will tell

Anonymous,  March 3, 2023 at 3:54 PM  

I blame Matt Hancock

Anonymous,  March 4, 2023 at 4:21 AM  

I think Parkgate is in urgent need of a face lift. The frontages of many of the stores look tired and dated. It would also help if there was more protection from the weather over the walkways

Anonymous,  March 6, 2023 at 10:06 PM  

Spare a thought for Rotherham town centre. It doesn’t even have Boots or H Samuel left any more. Parkgate is the place to be for Rotherham folk these days. If that shuts they will have to hop on Tram Train to Sheffield or Meadowhell.

Anonymous,  March 7, 2023 at 9:09 AM  

True, but Parkgate doesn't have a Samuel's either and has lost big names like M&S. I would do anything rather than shop in Sheffield or Meadowhall but often that just leaves shopping online which I also hate. Now that Wilko has closed you cannot even buy basic DIY items in town. It is very sad to see the demise of a once proud and vibrant town.

Anonymous,  March 7, 2023 at 1:58 PM  

The town certainly was vibrant in the 50s 60s and 70s with shops like Muntus, John Speed, Davy's, Hastings, Turvey, Russums, Joseph Peck, M&S, Woolworths, Van Allan, De Roek, Denham, BHS, H Samuel, Masons Jewellers, Danny Williams, Boots, Britain's, Schonuts and Waddington. And then of course there was the Cinema, Hippodrome, Whitehall, Empire, Odeon and the Regent.

Anonymous,  March 7, 2023 at 4:50 PM  

Not forgetting the Co-op, Gas and Electric Showrooms, Burtons, John Collier, Hepworths, C&A, Maypole and pubs like the Ring o' Bells, Falstaff, Wheatsheaf, White Hart, Duncan Gilmour, the College and the Crown Hotel

Anonymous,  March 7, 2023 at 10:49 PM  

Happy days

Anonymous,  March 8, 2023 at 10:58 AM  

I loved the hustle and bustle of the town centre especially on Fridays and Saturdays which were the main shopping days. The town was always busy in the evenings as well with people visiting the theatre, pubs
and cinemas. The fact that most of the buses loaded and unloaded in the town centre also added to the. Hustle and bustle.

Anonymous,  March 8, 2023 at 2:39 PM  

Saturday mornings at Main Street baths or the tanner rush at the cinema followed by a saucer of mushy peas and mint sauce from the outside Market!

Anonymous,  March 10, 2023 at 10:44 AM  

Nice to see that at least one old timer is comfortable using the internet

Anonymous,  April 11, 2023 at 11:13 PM  

Them were ‘days !

Anonymous,  June 24, 2024 at 9:11 PM  

Now you get fined for shopping and eating here - save your money and stay home! Greedy landowner punishing hard working people for spending money there! NEVER going again!!!!

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