News: Tesco to restrict parking at Rotherham store

Shoppers at the Tesco Extra in Rotherham town centre may need to change how they use the car park at the 110,000 sq ft superstore as the retailer intends to introduce restrictions later this month.

The national retailer is set to introduce a system that would allow shoppers to continue to park for up to three hours, as is the case now, but only if they spend over £5 in store and validate their parking.

Shoppers wanting to use the 600 space car park but not the Tesco store will only be given 30 minutes to head into town before leaving the site.

Those wanting to use the car park will still be able to visit the rest of the town centre in their three hours, so long as they spend £5 at Tesco and validate their parking.

Tesco said that the measures are being brought in "to improve space availability for our customers." When it opened, the store operated on a 24 hour basis. Opening hours were cut to 6am to midnight last year.

The car park currently allows for three hours free parking without the need for any spend in store or validation.

The new measures are set to be introduced on February 28.

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The new "ParkShopReg" system involves parking being validated on the day of visiting the store. This can be done at store using the machines provided or by using an app. A free parking voucher will be printed for customers in store which includes a barcode and voucher code. Drivers will have up until midnight on the day to validate using the app.

Details of any financial penalties have not yet been announced.

The retailer added: "Customers sometimes struggle to find a parking space when stores are near to town centres, train stations or other places where parking is difficult or expensive. The ParkShopReg Management System links customer stay time with spend in store helping to protect spaces for customers."

The £40m store opened in 2014 and includes 66,000 sq ft of retail space with planning permission granted for an additional 36,000 sq ft of floorspace from the old store on Forge Island.

Built on land purchased from Rotherham Council, the authority accepted the provision of free parking at the store as part of the 2011 planning application as it was the same as the arrangements at the old store. It was based on the car park being "made available, free of charge, for use of customers and non-customers for a maximum of two hours."

A condition was attached to the approved planning permission which read: "Prior to the development being brought into use, a Car Parking Management Strategy shall be submitted to and approved by the Local Planning Authority and the approved plan shall be implemented throughout the life of the store. The plan shall include details of the availability of 2 hours free parking for customers and non customers of the store. Reason: To limit the availability of free parking and to encourage the use of sustainable transport."

Tesco website

Images: TCN UK

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News: Rotherham needs to capitalise on Tesco investment

As the new £40m Tesco Extra prepares to open its doors to town centre shoppers this week, the developer spearheading the key scheme hopes that it can kickstart regeneration in Rotherham.

Thought to be the largest property investment deal in South Yorkshire for several years, TCN UK bought the vacated civic site from Rotherham Council for £7.3m and private property investor fund Osprey Income and Growth 2 LP purchased the development with the backing of £16.9m of equity from private investors and £23.75m of debt from HSBC Bank.

Contractors ISG, has built the 110,000 sq ft superstore, which also includes 540 parking spaces and a petrol filling station, on a five-acre site that was home to a number of council buildings.

Stephen Holme, development director of TCN UK Ltd (pictured, right), believes that now was the time for Rotherham to capitalise on this development and show to other investors it was ready for further investment.

Holme, who previously worked alongside the development team at Rotherham Council, said: "Bringing this project to completion is a milestone in the regeneration of Rotherham's town centre and has transformed the area positively, paving the way for renewed investment in the town.

"What is crucial now is that Rotherham capitalises on this level of change. South Yorkshire has huge development potential but is not yet witnessing the levels of investment and pace of change that we are witnessing across other sites in the UK such as Bristol and Birmingham."

As it set in place plans to move into new offices, Rotherham Council appointed TCN in 2007 as developers and entered an exclusivity agreement on council-owned sites covering over 10.5 acres of the town centre.

The Tesco development has prompted council planners to propose changes to the boundary of Rotherham's retail centre north to include the Tesco and car park at Walker Place, and existing car park at Drummond Street, to better define the area where retail development is concentrated.

Work has been talking place into how to bring forward a potential redevelopment of the outdoor market over the road, and the market site, and adjacent Drummond Street car park, have been earmarked as development sites where new retail space could be created.

At the adjacent bus station, the SYPTE is carrying out a review into wider development options in the area and options for the site are being explored with the landlord, Norseman Holdings. Work has been undertaken to explore funding options and further discussions are required between Norseman Holdings, Rotherham Council and SYPTE to bridge the funding gap.

The Tesco development also included £4m worth of public realm improvements and massive revisions to road and utilities infrastructure. The store was completed on budget and 14 days ahead of its anticipated completion date.

The UK's biggest retailer has created 450 jobs (200 full time and 250 part time) in Rotherham. 200 of these are additional to the current store on Forge Island and all staff at the current store would be guaranteed a job at the new site. A proportion of vacancies will be filled through Tesco's "Regeneration Partnership" which, in partnership with the local Job Centre Plus, ensures a proportion of vacancies are reserved for long term unemployed people.

Tesco website
TCN website

Images: TCN

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News: ISG finishes new Rotherham Tesco

ISG, the international construction services company, has completed the external construction works for the new £40m Tesco Extra store in Rotherham town centre, two weeks ahead of schedule.

The development, on a five-acre site that had been home to a number of council buildings, will see Tesco open 66,000 sq ft of retail space on November 13.

South Yorkshire's largest property investment deal for the past two years saw developers TCN UK Ltd, bring forward the superstore, which also includes 540 parking spaces, and a petrol filling station.

Moving from the current Tesco store on Forge Island, the new store will create an additional 36,000 sq ft of floorspace which is split into 14,000 sq ft of convenience and 22,000 sq ft of comparison goods. The plans stated that the additional floorspace will allow a greater range of products such as clothing, books, CDs and household electrical goods to be sold from the new store.

ISG secured the £19m contract to build the new store in 2013 and the project also included £4m worth of public realm improvements and massive revisions to road and utilities infrastructure.

ISG's construction team recently handed over the store to its own retail team to commence the fit out works inside. A spokesperson for ISG, said: "By working collaboratively, we have provided a one-stop service for developer TCN and its customer Tesco. The fit out will be completed in November ahead of the new store opening."

The adjacent petrol filling station site was also handed over seven weeks early.

Across town, Rotherham Council is continuing arrangements for the strategic acquisition of the vacated Forge Island store, which could include a purchase and sale to a third party. The council has an option to buy the site for £1.5m and the short term plan is to operate the site as a car park.

The new Rotherham store is one of only two large format Extra stores that Tesco plans to open in the rest of this financial year. Controversial plans for a large store in Margate have been scrapped and other sites have been mothballed as it reassesses its strategy under new chief executive Dave Lewis.

Last week, Tesco revealed that first-half profits dropped by 92%, to £112m and the Serious Fraud Office has launched a formal criminal investigation into accounting practices at the UK's biggest retailer after it overstated profits by £263m.

Tesco website
ISG website

Images: ISG

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News: Recruitment underway at new Rotherham Tesco

Recruitment has begun for some of the 450 staff at the new £40m Tesco Extra store in Rotherham town centre which is set to open on November 13.

South Yorkshire's largest property investment deal for the past two years has seen developers TCN UK Ltd, bring forward the 110,000 sq ft superstore, which also includes 540 parking spaces and a petrol filling station, on a five-acre site that was previously home to a number of council buildings.

ISG, the international construction services company, secured the £19m contract to build the new store and the project also includes £4m worth of public realm improvements and massive revisions to road and utilities infrastructure.

TCN UK Ltd bought the site from Rotherham Council for £7.3m and private property investor fund Osprey Income and Growth 2 LP purchased the development with the backing of £16.9m of equity from private investors and £23.75m of debt from HSBC Bank.

The development is set to create 450 jobs (200 full time and 250 part time). 200 of these are additional to the current store on Forge Island and all staff at the current store would be guaranteed a job at the new site. A proportion of vacancies will be filled through Tesco's "Regeneration Partnership" which, in partnership with the local Job Centre Plus, ensures a proportion of vacancies are reserved for long term unemployed people.

Rotherham jobs listed on the Tesco Careers website include customer assistants for the shop floor including the clothing section and the meat counter.

Moving from the current Tesco store on Forge Island, the new store will create an additional 3,362 sq m of floorspace which is split into 1,301 sq m of convenience and 2,061 sq m of comparison goods. The development will be restricted in terms of the concessions that can be included alongside the Tesco store. It is set to include a pharmacy, photo processing lab and mobile phone shop, but not an opticians, doctors, dry cleaning facility or post office.

It has been a difficult week for Tesco, Britain's biggest retailer, as it issued its fourth profits warning of the year on Monday following the discovery of an accounting error which overstated its first-half profit by £250m.

In Chatteris, Cambridgeshire, it has been reported that Tesco has "mothballed" a £22m, 47,000 sq ft store just weeks before it was due to open as it slows down its store opening programme.

Tesco Careers website

Images: Tesco / twitter

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News: Council set to acquire Forge Island

Rotherham Council looks set to buy Forge Island, raising hopes of a long-awaited cinema in Rotherham town centre and the potential for 200 new jobs.

In 2012, the council's cabinet confirmed Forge Island as the preferred site for a town centre cinema and theatre development. The council has an option to buy the site for £1.5m when Tesco vacate and move across town to the site of former council buildings on Drummond Street.

A report on the key decision is being prepared by officers and was due to be taken to the council's cabinet next month to discuss the site of the current Tesco store as a strategic acquisition.

To be discussed in private, the report will outline the site's "short term use to support the town centre and its future redevelopment."

Council officers have held informal discussions with interested developers who have plans for potential regeneration projects anchored by a cinema with restaurants, retail, residential, other leisure uses and car parking. An "Investors Day" was planned to take place to proactively promote the site for redevelopment and an outline planning application was expected to be submitted by Rotherham Council for the creation of a 25,000 sq ft cinema complex.

Rothbiz understands that proposals under discussion for Forge Island include a mixed used development including 25,000 sq ft cinema and a 20,000 sq ft theatre and 10,000 sq ft of High Street style retail, 10,000 sq ft restaurant / café use and a 80 bed budget hotel. Such a development could create 200 jobs.

Last week saw plans announced for a nine screen cinema and six new high quality restaurants at the Alhambra Shopping Centre in nearby Barnsley as part of a multi-million pound investment by landlords F & C Reit. In Sheffield, operator, The Light has plans to open a nine screen cinema as part of the redevelopment of The Moor. Both are set to open in 2016.

The new £40m, 110,000 sq ft Tesco Extra store across Rotherham town centre is on schedule to open in November. TCN UK Ltd bought the site from Rotherham Council for £7.3m as the council invested in new premises on the former Guest & Chrimes foundry site.

The development is set to create 450 jobs (200 full time and 250 part time). 200 of these are additional to the current store on Forge Island and all staff at the current store would be guaranteed a job at the new site. A proportion of vacancies will be filled through Tesco's "Regeneration Partnership" which, in partnership with the local Job Centre Plus, ensures a proportion of vacancies are reserved for long term unemployed people.

Work on £4m worth of public realm improvements and massive revisions to road and utilities infrastructure are largely complete with the store fit-out underway.

Images: Tom Austen

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News: Retail offer strengthens in Manvers

Retail developments are keeping the momentum going at the Manvers Waterfront regeneration scheme in Rotherham.

At the Waterfront Business Park, off Manvers Way, developers, QFM Group, has submitted plans for a 446 sq m, two-storey unit for retail use that could contain two class A5/A3 units on the ground floor, with additional seating on the first floor.

The end user is not yet known but it is expected to be another restaurant. If approved, it could created up to 17 full time equivalent jobs.

The site is already home to a large KFC and Costa coffee unit and has planning consent for two A3/A5 retail units within one single storey building with a gross floor area of 155 sq m with 28 parking spaces. The planning consent expires in August 2014.

Sheffield-based QFM, specialise in fast food retail developments. It brought forward the developments at Manvers (pictured) and Canklow and have plans for another outlet at Eastwood.

The Manvers Waterfront development is a 285-acre mixed-use regeneration of the former Manvers Colliery by Anglo-Dutch developers, TCN UK.

The plans for the latest unit state: "The proposal is intended to meet a specific market demand to predominantly serve the new developments which surround it. These include commercial, industrial, retail, leisure and residential land uses. The proposal cannot therefore be disaggregated from the site and there are no sequentially preferable locations that would meet the same requirements that the application is intended to meet."

Also at Manvers Waterfront, Onward Holdings continues to make progress with its Onyx Retail Park development. Phase One is occupied by Greggs the Baker, Domino's Pizza, Subway and Motor World. The second phase of the development was brought forward after the take-up of units in Phase One was much quicker than originally anticipated.

The development has so far led to the creation of around 100 new jobs with grocery giant Spar and Beauty at Heart salon also recently opening. A well-known charity has also signed up at the park.

Home to two restaurants, Thai Garden Café and Bistro 63, recent openings include franchises from YoYo Noodle and Caffè Latte (pictured).

Caffè Latte started in 2008, with a first franchise opening in May 2012 in Ramsgate, Kent. Throughout the past 18 months the company has opened a further six stores nationwide with an expansion plan for 2014 to open a further 20 stores.

Also at Onyx, plans are being determined for Unit 12 to become the Marina fish and chip shop.

Onward Holdings website

Images: QFM Group / Caffè Latte

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News: New Rotherham Tesco open for Christmas

The new £40m Tesco Extra store in Rotherham town centre is on track to be open and trading before Christmas.

South Yorkshire's largest property investment deal for the past two years, has seen developers TCN UK Ltd, bring forward the 110,000 sq ft superstore, which also includes 540 parking spaces and a petrol filling station, on a five-acre site that was home to a number of council buildings.

ISG, the international construction services company, secured the £19m contract to build the new store and the project also includes £4m worth of public realm improvements and massive revisions to road and utilities infrastructure.

The development is set to create 450 jobs (200 full time and 250 part time). 200 of these are additional to the current store on Forge Island and all staff at the current store would be guaranteed a job at the new site. A proportion of vacancies will be filled through Tesco's "Regeneration Partnership" which, in partnership with the local Job Centre Plus, ensures a proportion of vacancies are reserved for long term unemployed people.

TCN UK Ltd bought the site from Rotherham Council for £7.3m and private property investor fund Osprey Income and Growth 2 LP purchased the development with the backing of £16.9m of equity from private investors and £23.75m of debt from HSBC Bank.

The UK development was unaffected by the Dutch parent company of TCN being made bankrupt in 2012 due to its complex property investments across Europe.

Stephen Holme, development director of TCN UK Ltd, said: "We are on schedule to allow Tesco access to the store in August so that fit-out of the store can begin.

"This is one of the most important development projects for Rotherham town centre over the past ten years and will bring a significant volume of jobs to the region as well as opening the area up for further investment. It ranks as the biggest development deal in South Yorkshire in the last two years."

Mark Thomas, spokesperson for Tesco, added: "It's fantastic to see such progress being made with our Rotherham store. This will be a major boost for the town, bringing hundreds of jobs and playing a big role in the area's ongoing regeneration.

"We're delighted to have already been working with the community on artwork for the store and will continue to play an active role in Rotherham. We're really looking forward to welcoming customers later this year."

The council is looking at ways to capitalise on Tesco's move across town, currently considering the findings of an independent study into the future of the adjacent markets complex and targeting the former Tesco site on Forge Island for a cinema and possible new theatre development.

Karl Battersby, strategic director for environment and development services at Rotherham Council, said: "This is one of the last stores of this scale to be built nationally, and the scale of the investment shows real confidence in Rotherham.

"We have worked hard with Tesco to integrate the store into the town centre and its opening will represent the delivery of another key Rotherham Renaissance project. The story does not end here though - as the authority will continue to dedicate its resources to the town centre."

Tesco, the UK's number one retailer, saw a 6% decline in trading profit in the year to February 2014, but still made £3.3bn. Changes in shopping habits and the growing popularity of online and convenience stores, saw Tesco reign in large out of town developments. It now has plans for 700,000 sq ft of new space this year – half of the 1.4m sq ft last year.

Tesco website
TCN UK website

Images: TCN UK Ltd / Tom Austen

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News: YoYo Noodle opens in Rotherham

YoYo Noodle has successfully launched its latest oriental fast food outlet at the Onyx Retail Park in Rotherham.

After seeing the growing popularity of takeaway noodles and takeaway boxes from their buffet restaurants, Eric Ho, founder of YoYo Noodle, took the business in a new direction and established a franchise model of noodle bars aimed at students, shoppers and business people who were looking for an alternative option when it comes to eating out.

The East Midlands firm opened its first branch in September 2010, in Nottingham, followed by new outlets in Newcastle, Croydon and Lincoln, all offering over 1,000 unique combinations of fresh, balanced and health-conscious dishes combining a variety of noodles, vegetables and sauces.

The latest outlet is based on Phase Two of the successful retail park which forms part of the Manvers Waterfront development, the 285-acre mixed-use regeneration of the former Manvers Colliery by Anglo-Dutch developers, TCN UK.

Phase One is occupied by Greggs the Baker, Domino's Pizza, Subway and Motor World and in addition, the park is home to two restaurants - Thai Garden Café and Bistro 63.

Owners, Onward Holdings Ltd, brought forward Phase Two of the development after the take-up of units in Phase One was much quicker than originally anticipated. The development has so far led to the creation of around 100 new jobs.

And already 60% of Phase Two is pre-let or under offer with grocery giant Spar, a well-known charity and a renowned fish and chip chain set to join other names on the site.

Beauty at Heart has also recently opened on the park offering beauty, nail and tanning treatments.

YoYo Noodle website
Onward Holdings website

Images: YoYo Noodle / Facebook

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News: ISG hands back Hastings Clock to town

The distinctive blue and gold Hastings Clock has been moved back into Effingham Square as part of TCN UK's redevelopment of the former Civic Buildings' site in Rotherham town centre.

TCN UK agreed to carry out the works with the Council as part of an extensive programme of public realm improvement works connected to the new 110,000 sq ft Tesco superstore which also includes 540 parking spaces and a petrol filling station on the five-acre site.

Stephen Holme, director of TCN UK, said: "Relocating the Hastings Clock is just one aspect of the overall development, which has seen the demolition of Norfolk House, the Library and Arts Centre, the Civic Centre and the flyover.

"Once completed, Rotherham will benefit from a new road junction as well as extensive road improvements to Drummond and Nottingham Streets, and a highly attractive hard and soft landscaping scheme in Effingham Square itself."

Main contractor, ISG, moved the five tonne Grade II listed structure back into Effingham Square, where it will now form the centrepiece of a new pedestrian landscape.

Andrew Beaumont, senior project manager for ISG, said: "It is a ten metre high architecturally listed structure and every stage of the clock's relocation has been carefully planned. Removing the clock from its original location was a painstaking process as we carefully excavated the clock's foundations before lifting and transporting it to the specialist restoration company.

"The clock has undergone a comprehensive 17-week programme of refurbishment, with each component stripped down and re-painted in its original colour scheme, any damaged areas repaired, the glass in the clock face replaced back to its original leaded face and the mechanism fully serviced.

"We still have several weeks of work ahead of us to complete the full installation of the clock, which will involve slightly raising the structure to expose an exciting feature that was hidden underground at its previous location. 

"We had initially thought that a series of sculpted horses hooves had been removed from the base of the clock when it was relocated to the Civic site - in fact they had just been buried, so in Effingham Square this hidden feature will once again be revealed."

Commissioned and presented to the town by Rotherham businessman, James Hastings to commemorate the coronation of King George V, the cast iron clock tower was made by Scottish iron founders, MacFarlane and Co. of Glasgow.

The actual clock mechanism was made by John Mason of Rotherham - clockmakers who had been in the business since the 17th century. He built a shop on Rotherham's High Street, and also played a key civic role  being a councillor from the early 1880's and serving as Mayor in 1888.

Replacing the Forge Island store, the new Tesco Extra is planned to open in January 2015.

ISG website

Images: ISG

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News: Flyover makes way as Tesco development progresses

Contractors, ISG, are making good progress on the new £40m Tesco development in Rotherham town centre, with all of the former civic buildings demolished and the Centenary Way flyover the next in line to be removed.

The first phase of the project is the construction of a new road junction onto Centenary Way, paving the way for the demolition of the flyover that is due to commence from the first weekend in November, requiring a series of weekend closures of Centenary Way.

Between the five weekend closures, contractors will carrying out demolition to the bridge either side of the ring road.

At the same time a pedestrian crossing in the same location is expected to greatly improve pedestrian access into Rotherham town centre and a new junction between Kenneth Street and Centenary Way is also to be constructed.

Developers TCN UK secured planning permission for a new 110,000 sq ft superstore last year which also includes 540 parking spaces and a petrol filling station on a five-acre site that has been home to a number of council buildings.

On the site itself, the construction of the concrete retaining wall along Nottingham Street has begun, along with some of the building's pad foundations.

Service diversions have been undertaken and the redevelopment of Effingham Square is due to complete in November. This will see the fully refurbished grade II listed Hastings Clock installed back in the square.

Replacing the Forge Island store, the new Tesco Extra is planned to open in January 2015.

ISG website

Images: TCN / Smith Smalley

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News: Work starts on new £40m Tesco

Work has commenced on the new £40m Tesco Extra store in Rotherham town centre with an estimated date for the store to open for trading of January 2015.


Developed by TCN UK, the 110,000 sq ft superstore, which also includes 540 parking spaces and a petrol filling station, is being built on a five-acre site that has been home to a number of council buildings.

TCN had hoped to complete the project in December 2013.

With Crinoline House already demolished, contractors ISG will start on site with the demolition of current Norfolk House, the Library & Arts Centre, the Civic Centre and the existing Centenary Way flyover, taking place this summer. Major service diversions will also take place including a main sewer upgrade up Nottingham Street and a main sewer upgrade on the former Crinoline House site.

There will be extensive upgrades and improvement work to the road and traffic network, including a new road junction created between Drummond Street and Centenary Way, and new hard and soft landscaping improvement works to Effingham Square, Drummond Street and Nottingham Street.

The works are programmed to ensure that vehicle and pedestrian access across the existing road network is maintained as far as reasonably practicable throughout the course of the works, however there will be changes to the footpath layout and road layout to enable the works to be completed and these will be communicated to the local community throughout the course of the works.

The store is expected to come out of the ground when foundation work commences in January 2014 with a completion date pencilled in for the end of 2014.

The development is set to create 450 jobs (200 full time and 250 part time). 200 of these are additional to the current store on Forge Island and all staff at the current store would be guaranteed a job at the new site.

Earlier this year, private property investor fund Osprey Income and Growth 2 LP purchased the development with the backing of £16.9m of equity from private investors and £23.75m of debt from HSBC Bank.

With regard to the Forge Island site that Tesco plans to vacate, the council said that it is "currently undertaking investigative work to fully assess the options for redeveloping the site to accommodate a mixed use leisure development, before entering into further discussions with commercial partners."

A formal ground breaking ceremony for the new Tesco took place this week.

TCN website

Images: TCN UK

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News: Private property investors in Rotherham Tesco deal

The £40m forward funding acquisition of the Tesco development in Rotherham town centre is significant given the market conditions.

Private property investor fund Osprey Income and Growth 2 LP completed the deal last month with the backing of £16.9m of equity from private investors and £23.75m of debt from HSBC Bank.

TCN Renaissance, a UK-based commercial property specialist, will be developing the property on the former civic site after the land was acquired from Rotherham Metropolitan Borough Council.

Planning permission for a new 110,000 sq ft Tesco Extra superstore was granted last year which also include 540 parking spaces and a petrol filling station. Tesco has signed a pre-let agreement on a 30 year unbroken lease.

Work is set to get underway this month with required paperwork already submitted relating to the significant changes to the road network.

John White, director of Osprey Equity Partners, who arranged the funding, said: "We are delighted to be working with TCN, HSBC and Tesco on this project, which reflects our current focus on the forward funding of UK food superstores. This sector offers our investors unusually long, inflation-linked income from outstanding covenants and the forward funding entry point provides a discount to standing investment values, unused capital allowances and a state of the art building. As a result of the low cost of debt secured from HSBC, we are able to pay investors a coupon of 6% pa.

"This purchase coincides with the practical completion of a large Sainsbury's foodstore in Sunderland acquired last year from Terrace Hill by another of our high net worth investor funds, Osprey Supermarket Income and Growth 1 LP."

Nick Short, partner of Prime Retail, a retail property consultancy that advised on the deal, added: "This is a significant deal in the current market given the continuing mismatch between high demand from investors and occupiers for food stores and limited development finance.

"Our ability to support Osprey in this key transaction is important to us given our long-standing relationship with the team. Osprey is well placed to take advantage of future opportunities and we look forward to advising them further."

TCN website
Osprey website

Images: Tesco

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News: Tesco land deal unlocks forward funding

Rotherham Borough Council has agreed the £7.3m sale of its former town centre civic site with developers, TCN UK, enabling the £41m required for a new Tesco development to be secured.

Planning permission for a new 110,000 sq ft Tesco Extra superstore was granted last year which also include 540 parking spaces and a petrol filling station.

Work on the five-acre site, that has been home to a number of council buildings, is expected to start in the Spring.

Following the land deal, real estate investment specialists, Osprey Equity Partners finalised its Osprey Income and Growth 2 LP fund, having raised £16.9m of equity from private investors and £23.75m of debt from HSBC Bank. It will forward fund the £41m food superstore which has been pre-let to Tesco on a 30 year unbroken lease.

Coun Gerald Smith, Cabinet Member for Environment and Development Services for Rotherham Borough Council, said: "We are obviously delighted to see such a major player re-investing in our town. Tesco have been in Rotherham for many years but the new store will give the residents of Rotherham a much wider town centre shopping offer and experience as well as having a positive impact on the town centre in its own right.

"We also want this development to be a catalyst for further investment and improvement. Our commitment to helping everyone from major retailers to independent shopkeepers to thrive in Rotherham continues and the council, along with other organisations, has been working hard to do that. We have improved the infrastructure around the town centre with various developments like the Minster Gardens and the new railway station and there is also on-going support for traders."

Stephen Holme, Director of TCN UK added: "We are pleased to have been able to work with Rotherham Borough Council to help realise Rotherham's Renaissance ambitions for the Town Centre. Following this land purchase we intend to quickly progress matters that will allow us to make a start on site later this spring."

The development is set to create 450 jobs (200 full time and 250 part time). 200 of these are additional to the current store on Forge Island and all staff at the current store would be guaranteed a job at the new site.

The new development also meets the need for a larger food store in Rotherham town centre with Tesco increasing its floorspace from 2,911 sq m at Forge Island to 6,273 sq m at the new store.

Karl Battersby, the council's Strategic Director for Environment and Development Services, added: "This sale enables the next major development to take place and will allow the authority to consider the future use of Forge Island, once the existing Tesco store finally closes after the completion of the new one."

The council has an option to purchase the Forge Island site for £1.5m. It has been identified as a preferred location for a cinema and theatre development.

TCN website

Images: TCN / Smith Smalley

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News: BDL takes over Rotherham hotel

The owners of Park Inn by Radisson Rotherham hotel in Manvers have engaged BDL Management to operate the hotel on their behalf.

As a result, the hotel will be refurbished and launched as The Holiday Inn Express Rotherham North in October 2012.

A spokesperson from BDL confirmed that the hotel will remain open during this transitional period and that all staff are being retained as part of the transition.

BDL Management is the UK's largest multi brand and hotel management company.

Since its February announcement of plans to almost double its portfolio of properties within three years, the Glasgow-based company has secured nine new hotel management contracts worth £3m over the next five years.

The Rotherham management contract brings their portfolio of managed hotels to 47. BDL Management employ over 2,500 staff around the UK, including 14 other InterContinental Hotels Group hotels.

Stewart Campbell, managing director of BDL Management Ltd, said: "This strong start to the year puts us in good stead for the longer term business targets and demonstrates our ability to achieve growth despite continued difficult market conditions.

"We have an equally strong pipeline of activity for the remainder of the year, which we aim to end with a total of 50 properties in our portfolio, and are already looking ahead at key opportunities for 2013."

Specialist hotel developer Heritage London & Hanover Group began construction of the £9m, 130-room hotel in 2008 and it opened in late 2009. The group went into liquidation in 2011.

The hotel is a key feature of the £130m Waterfront development at Manvers by TCN UK which also incorporates lakeside houses and apartments, commercial space, a boating lake and golf course.

Michels & Taylor, the asset management company that specialises in hotel property management, recently submitted a planning application for new signage on the site.

Holiday Inn website

Park Inn website

Images: Michels & Taylor

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News: Rotherham town centre Tesco approved

Rotherham Council has issued a decision notice to the developers of a new £40m Tesco Extra in Rotherham town centre, signifying that planning permission has officially been granted.

Members of the planning board approved the plans unanimously in June and referred them to the government's National Planning Casework Unit. The body handles major planning applications on behalf of the Secretary of State but decided that the local authority is best placed to make the decision.

The planning permission comes with over 60 conditions include restricting the floorspace and uses, details of the multimillion pound investment in the road network, approving the use of building materials, ensuring that sewers are diverted, plans for dealing with drainage and flooding issues and the important provision of two hours of free parking.

Anglo-Dutch developers, TCN has already agreed a lease with Tesco for an 110,000 sq ft superstore to anchor the plans that also include 540 parking spaces and a petrol filling station.

Construction of the five-acre site, that has been home to a number of council buildings, is set to begin this November and complete in December 2013. Occupation by Tesco is planned for March 2014.

The developers and planners at the council agree that the positive impacts of the development outweigh any negatives. The planner's report stated that: "The impact of the proposal has been assessed and whilst it is recognised that the proposal may have an impact on footfall and trade on the western side of the town centre, on balance it is considered that the benefits to Rotherham town centre as a whole would outweigh this."

The benefits include the development of a now vacant site following the move across town of council workers and the "provision of a new town centre anchor, which will help to claw back expenditure leakage and improve the attraction of the centre as a whole."

The development would also create 450 jobs (200 full time and 250 part time). 200 of these are additional to the current store on Forge Island and all staff at the current store would be guaranteed a job at the new site.

The new development also meets the need for a larger food store in Rotherham town centre. Tesco will increase their floorspace from 2,911 sq m at Forge Island to 6,273 sq m at the new store.

The development will also see Forge Island released for redevelopment with the council thought to have an option to purchase the site that had been identified for a cultural centre.

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News: Tesco expects new Rotherham store to open in March 2014

Rotherham Council is finalising the details of the full planning permission for the new £40m Tesco Extra in Rotherham town centre after the government decided not to intervene.

Members of the planning board approved the plans unanimously in June and referred them to the government's National Planning Casework Unit. The body handles major planning applications on behalf of the Secretary of State but has decided that the local authority is best placed to make the decision.

The plans will be officially rubber-stamped when a number of conditions are legally agreed between the council and the developers, TCN UK. These cover aspects such as restricting the sales areas, creating travel plans for staff, approving the use of building materials and diverting the sewers.

As part of the development, a multi-million pound investment would also be made in Rotherham's road network, including removing the Centenary Way flyover.

Anglo-Dutch developers, TCN has already agreed a lease with Tesco for an 110,000 sq ft superstore to anchor the plans that also include 540 parking spaces and a petrol filling station. The retailer will rent the space for a period of 30 years at an annual rent of £2m.

Construction of the five-acre site, that has been home to a number of council buildings, is set to begin this November and complete in December 2013. Occupation by Tesco is planned for March 2014.

Stephen Holme, development director of Anglo-Dutch developer TCN UK said: "It has taken a long time for all the pieces to come together, which heightens the sense of achievement for all parties, including Rotherham Council as landowner. We are excited about the impetus this gives to the town centre and the adjoining market site."

Matthew Magee, spokesperson for Tesco, added: "We're very pleased to have received planning permission at committee and we're looking forward to bringing forward this great investment in Rotherham and improving our offer for customers."

Alex Munro, partner at global property consultancy Knight Frank, who are advising TCN UK on the funding of the development, said: "This significant development is a massive boost to the renaissance of Rotherham town centre. It will regenerate a key area of the town, create much-needed jobs and will help to make the centre of Rotherham an attractive retail destination."

The development would create 450 jobs (200 full time and 250 part time). 200 of these are additional to the current store on Forge Island and all staff at the current store would be guaranteed a job at the new site.

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News: Plans set to be approved for Rotherham town centre Tesco

Plans for the new £40m Tesco Extra in Rotherham town centre are to be decided upon this week with members of the planning board being recommend to approve the application.

The 10,000 sq m development on the site of council buildings at Walker Place will replace the current outdated store on Forge Island. Anglo-Dutch developer, TCN is purchasing the council's 22,000 sq m Civic Site and submitted initial plans at the end of last year. Updated plans were submitted in April following detailed discussions with Rotherham Council and local businesses.

The proposals are for a Tesco store with a total sales area of 6,273 sq m on the site of the Civic Building, Central Library and Norfolk House, plus a petrol filling station on the site of Crinoline House. It will create an additional 3,362 sq m of floorspace from the current store which is split into 1,301 sq m of convenience and 2,061 sq m of comparison goods.

As part of the development, a multi-million pound investment would be made in the road network, including removing the Centenary Way flyover. The mitigation measures mean that planners consider that the new store will have little adverse impact on the local highway network.

The creation of a shared surface on Drummond Street is proposed to improve the pedestrian link and new public realm areas are also included and improvements to Effingham Square will see it resurfaced, and the area made more pedestrian friendly.

The building is proposed to be a modern and contemporary style with timber cladding and curtain wall glazing on the elevation to the town centre. A "green wall" with vertical climbing plants is proposed at the back of the store facing Nottingham Street and St Ann's.

600 car parking spaces are proposed within the application site including undercroft parking beneath the store. It is proposed that the car park can be used free of charge for up to two hours.


The planner's report includes detailed reasons on why the application should be approved covering the impact on the town centre and out of town retail, scale, usage, design, noise and transport issues.

It is considered that the benefit of an anchor store such as the proposed Tesco development would assist in clawing back expenditure to the town centre and outweighs the potential detrimental affect on town centre traders.

Regarding the impact the planner's report concludes that the development: "would facilitate an improved quality of shopping environment and experience for customers visiting the town centre area, and also enable Forge Island to be redeveloped.

"The application site is adjacent to the town centre core retail area of the town centre, the indoor market and the transport interchange. It is noted that the relocation of the store may have an impact on footfall at the western site of the town centre, however in determining this planning application this does not outweigh the benefits that the proposal would have for the vitality and viability of the town centre as a whole."

Any planning permission will include a number of conditions covering aspects such as restricting the sales areas, creating travel plans for staff, approving the use of building materials and diverting the sewers.

The development will also be restricted in terms of the concessions that can be included alongside the Tesco store. It is set to include a pharmacy, photo processing lab and mobile phone shop, but not an opticians, doctors, dry cleaning facility or post office.

The development would create 450 jobs (200 full time and 250 part time). 200 of these are additional to the current store and all staff at the current store would be guaranteed a job at the new site.

If approved, the planning board will need to refer the plans to the government's National Planning Casework Unit who handle major planning applications on behalf of the Secretary of State. If they decide not to intervene, planning permission will be granted, subject to the conditions.

The store is expected to be open and trading in 2013. Vacant possession of the site will not be possible until Spring 2012 and it will take around one year to build the proposed scheme.

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News: Rotherham town centre Tesco plans updated

Plans for a new Tesco Extra in Rotherham town centre have been updated and resubmitted following continued discussions with Rotherham Council and local businesses.

The 10,000 sq m development on the site of council buildings at Walker Place will replace the current outdated store on Forge Island.

Anglo-Dutch developer, TCN is purchasing the council's 22,000 sq m Civic Site and submitted initial plans at the end of last year for a store with a total sales area of 6,273 sq m on the site of the Civic Building, Central Library and Norfolk House, plus a petrol filling station on the site of Crinoline House.

The major revision is to the planned road layout with a left turn now included off Centenary Way onto Kenneth Street following pressure from businesses on Effingham Street. As part of the development, a multi-million pound investment would be made in the road network, including removing the Centenary Way flyover.

There is also now a plan to close vehicular access onto Norfolk Street from Nottingham Street to stop "rat-running."

Following concerns on how the new store will link to the rest of the town centre another entrance is now emphasised opposite the markets on Drummond Street. A "shared surface" on Drummond Street is planned to remove any perceived barriers to pedestrian connectivity with the primary shopping area.

A number of updates have been made to the design with new mesh around the undercroft car park and a "green wall" with vertical climbing plants at the back of the store facing Nottingham Street and St Ann's. Some changes have also been made to the planned public realm area in Effingham Square.

Following concerns from the council and an assessment by retail consultants at Colliers CRE, the development will be restricted in terms of the concessions that can be included alongside the Tesco store. It is set to include a pharmacy, photo processing lab and mobile phone shop, but not an opticians.

The applicants state that the development "will help to claw-back trade lost to out-of-centre superstores, which in-turn will improve visitation and footfall within Rotherham town centre, with spin-off benefits for other town centre traders."

Planning consultants, DPP, who put the plans together, are hopeful that they will go before the council's planning board in May. The store is not expected to be open and trading until 2013, because vacant possession of the site will not be possible until Spring 2012 and it will take around one year to build the proposed scheme.

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News: New Rotherham town centre Tesco plans submitted

Plans for a new Tesco Extra in Rotherham town centre have been submitted to Rotherham Council.

The 10,000 sq m development on the site of council buildings at Walker Place will replace the current outdated store on Forge Island.

Anglo-Dutch developer, TCN is purchasing the council's 22,000 sq m Civic Site for £7m with Rotherham Council staff relocating to new offices, Riverside House on Main Street, in 2012.

The plans put together by consultants, DPP and drawn up by architects, Smith Smalley, include a Tesco Extra store with a total sales area of 6,273 sq m on the site of the Civic Building, Central Library and Norfolk House, plus a petrol filling station on the site of Crinoline House.

The development would create 450 jobs (200 full time and 250 part time). 200 of these are additional to the current store and all staff at the current store would be guaranteed a job at the new site.

The proposed store will provide 1,301 sq m more convenience sales floorspace than the current store. There will be a total of 2,411 sq m comparison goods sales floorspace, which will be 2,061 sq m more than provided by the existing Tesco store. The plans state that the additional floorspace will allow a greater range of products such as clothing, books, CDs and household electrical goods to be sold from the proposed store.

The site will also act as a distribution outlet for internet shoppers at tesco.com with seven delivery vehicle spaces.

As part of the development, a multi-million pound investment would be made in the road network, including removing the Centenary Way flyover.

Plans show a brand new junction between Drummond Street and Centenary Way, replacing the flyover with a signalised junction and a pedestrian crossing, enabling motorists to turn left or right onto the ring road.

Access to the Tesco store would be from both Drummond Street and Nottingham Street with the Grade II listed clock, which sits at the current civic centre complex, would be moved to Effingham Square.

To address council concerns regarding linking the store to the rest of the town, the updated plans include re-orientating the store so that it now fronts onto Drummond Street rather than Centenary Way. The creation of a shared surface on Drummond Street is proposed to improve the pedestrian link, and the existing signalised pedestrian crossing from the site into Effingham Square is to be retained. New public realm areas are also included.

The design is typical of a new build Tesco store with the "corner feature used to create a striking landmark element to the building emphasising the proposed mezzanine level café."

It will also be an "Eco-Store" which incorporates Tesco's new, low carbon design and aims to reduce the carbon footprint of the store. It is set to include a CHP (combined heat and power) unit and sub-station on the site.

There will be a total of 544 parking spaces and the car park will provide free parking for two hours on the site for customers of the food store. The duration will allow and encourage Tesco customers to undertake a linked trip with the town centre as part of their visit.

The applicants assume that the store will not be open and trading until 2013, because vacant possession of the site will not be possible until Spring 2012 and it will take around one year to build the proposed scheme.

The retail giant announced today that like for like sales in the six weeks to January 7 in the UK were down 2.3 per cent compared to the festive period last year. The disappointing figures led to an outlook of "trading profit growth to be around the low end of the current consensus range."

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News: New Tesco will "form a natural extension to Rotherham town centre"

Developers behind a new 10,000 sq m Tesco Extra development in Rotherham, expect it to have a positive impact on the town centre.

Anglo-Dutch developer, TCN, has submitted the plans this week which discuss how the new store will form a natural extension to the town centre and provide "a new town centre anchor that will help to claw-back trade lost to out-of-centre superstores."

The development on the site of council buildings at Walker Place will replace the current outdated store on Forge Island that cannot be extended or redeveloped.

The plans also state that "the proposal will not result in any significant detrimental impact upon the vitality and viability of the existing stores or centres."

The proposed store will provide 1,301 sq m more convenience sales floorspace than the current store. There will be a total of 2,411 sq m comparison goods sales floorspace, which will be 2,061 sq m more than provided by the existing Tesco store.

The additional floorspace will allow a greater range of products such as clothing, books, CDs and household electrical goods to be sold from the proposed store.

The plans add that: "However, the Tesco store will not provide much choice within each category of non-food goods sold, and it will not take the place of traditional comparison high street outlets, which provide a much more varied offer."

A spokesperson addressed concerns from some retailers that the move across town will adversely affect existing stores: "We do not consider that the closure of the existing Tesco store will have any adverse impact on the town centre, because this store is not well-connected to the retail core and is constrained and dated in its offer.

"We expect that the replacement store may divert some trade from other retailers in the town centre, but only to a limited degree.

"In terms of convenience provision, there are no other main food retailers within the town centre to impact upon. The only existing convenience retailers are small-scale, largely independent units, which provide a 'top up' food and grocery function, and will continue to do so.

"These retailers currently trade alongside the existing Tesco superstore at Forge Island, and so there is no reason why they will not be able to continue trading alongside the replacement store."

With 544 parking spaces proposed, the car park on the new site will provide free parking for two hours for customers of the food store, similar to arrangements at the current Tesco store on Forge Island. The applicants hope that this duration will allow and encourage Tesco customers to undertake a linked trip with the town centre as part of their visit.

The development would create 450 jobs and is expected to open in 2013.

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