Report
Under starter’s ORDERS
Glasgow is set to undergo a retail and sporting transformation with its favourite shopping centre at the heart of the change. A1 examines the plans in the pipeline
just over 30 miles to the northeast at Gleneagles. New buildings are popping up across the city ahead of
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the events, such as the Scottish National Arena and the National Indoor Sports Arena and Velodrome, while Glasgow will also benefit from a tourist-led retail boost during the tournaments, building on its reputation as a retail destination second only to London. Buchanan Street boasts the highest footfall of any UK high
street outside London. Land Securities and Henderson Global Investors – co-owners of its principal retail centre, Buchanan Galleries – have established a vision for a new Buchanan Quarter, at the heart of the city centre. The current Buchanan Galleries scheme provides more
than 600,000 sq ft of retail and restaurants across four floors and is Glasgow’s main shopping centre. Positioned at the confluence of two of Europe’s best-known shopping destina- tions, Buchanan Street and Sauchiehall Street, Buchanan Galleries is 96% let and includes a John Lewis department store plus more than 90 retail names under one roof, from giants such as H&M, Next and Boots, to small independents. “Buchanan Galleries demonstrates the popularity of prime
property in a prime location,” says Richard Akers, managing director, retail, at Land Securities. “It has become an impor- tant retail destination and a major tourist draw for the city.”
A happy high street Glasgow’s reputation is set to be further enhanced with a 155,000 sq ft, £70m redevelopment of 185-221 Buchanan Street – a previously blighted section of the Buchanan Street area. Land Securities reports that the scheme is already 90.7%
pre-let, and scored a coup with US fashion powerhouse Forever 21 pre-letting 60,000 sq ft in the development. In January, Fat Face, Skechers, Office and Watches of Switzer- land were also confirmed, joining Paperchase and Gap. The scheme is scheduled to open by March 2013, well ahead of the following year’s Commonwealth Games. “We are delighted to be over 90% let by income a year ahead of opening,” says Nick Davis, development director at Land Securities. “It
28 spring 2012
ever mind London’s summer Olympics, Glasgow is in the blocks ready for its own sporting spotlight in 2014 when it will host the 20th Commonwealth Games and golf’s Ryder Cup will be held
demonstrates the strength of the location – one of the stron- gest in Europe – and the pent up demand for retail in the city.” The next step is a proposed 400,000 sq ft extension to Buchanan Galleries. Akers stresses that financing is a crucial element of pushing the project forward, with an innovative Tax Increment Financing (TIF) scheme, being promoted by Glasgow City Council, as an important step in the process for the redevelopment of the Buchanan Quarter. The business case was approved by Glasgow City Council last October and is now with the Scottish Government for approval. Glasgow City Council is expecting an update on the status of the TIF in spring this year. Approval of the TIF scheme will secure £80m to fund
public realm and public infrastructure works within the Buchanan Quarter. It will unlock £310m of private sector investment and will create 1,700 new jobs for the city. “One thing that sets Glasgow apart is the attitude of the
local authority, which has been extremely proactive and has recognised that providing top-quality facilities is key when redeveloping a site of this importance,” says Akers. “The attitude of the local authorities is shaping our thinking and influencing where we choose to invest in development schemes around the UK. As a developer, you want to work with a local government which shows that sort of insight.” As part of the Buchanan Quarter proposals, Buchanan Partnership has been selected as development partner by Network Rail for a site adjacent to Queen Street station. This will facilitate the extension and refurbishment of one of Scotland’s principal railway stations – which is used daily by 55,000 commuters and visitors – creating an enhanced gateway to the city centre and eventually to link directly to the extended Buchanan Galleries and the nearby bus station. “The Buchanan Quarter will place a greater emphasis on sustainable public transport. Working in partnership with Network Rail, Queen Street station will promote connec- tivity and integration with the rest of the city centre,” says Davis. “The Buchanan Quarter project also includes the refurbishment and extension of the Glasgow Royal Concert Hall, and the creation of a new restaurant and leisure destination within the development. Davis adds: “The completed development will establish Glasgow as the premier retail destination in the UK, outside London’s West End, providing a retail, leisure and cultural experience.” l
WHAT’S IN STORE FOR GLASGOW?
2012 2013
The 600,000 sq ft Buchanan Galleries sits on Buchanan Street, with John Lewis as its anchor
A 155,000 sq ft addition to the retail offer is due to open in spring opposite the existing centre, with Forever 21 already a confirmed tenant
49 apartments forming the residential element of the scheme will open in the autumn with their unique city- living style and roof-top garden
2014 2015
Completion due of the first phase of Queen Street station improvements
Depending on the progress of the TIF, a 400,000 sq ft addition to Buchanan Galleries is expected be completed
It will unlock £310m of private sector investment and will create 1,700 new jobs for the city
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