Report
Social C
hot spot
The Cornerhouse in Nottingham is the perfect example of how Land Securities is developing its interest in the leisure sector. By Joanna Perry
onsumers are ever more discerning about how to spend their free time, however, Land Securities is turning this trend to its advantage with growing investment in the leisure sector to create compelling destinations.
Land Securities head of retail portfolio management
Ashley Blake says the company has decided that leisure will be crucial to its tenant mix going forwards, as the sector has grown so strongly through the recession. “There has been nearly 5% like-for-like growth in restaurant sales in the past year, and cinemas have also performed well. We now have £48m in leisure income and more than 250 restaurants and cafes in our group portfolio.”
Food for thought One reason the catering industry is doing so well is the changes in social trends that see more consumers eating out – for instance at Sunday lunchtime – an activity that was less common even 15 years ago. Land Securities has embraced this trend, reviewing the leisure in its existing schemes and purchasing leisure-only schemes including the O2 centre in northwest London. In May, Land Securities acquired its second dedicated
leisure scheme – The Cornerhouse in Nottingham – for £50m from BP Pension Fund. Leisure is becoming a more important part of Land Securities’ retail portfolio, and also reflects the changing nature of the UK’s high streets. At 225,000 sq ft, The Cornerhouse is the only purpose-built leisure scheme in Nottingham, and is anchored by the city’s only multiplex cinema – a 14-screen Cineworld, which will soon include an IMAX screen. This is complemented by 11 restaurants, two bars, a casino and a nightclub, which also hosts regular comedy club nights. With its location at the heart of the city centre, it draws
footfall throughout the day – particularly at lunchtime from nearby office workers – as well as the evening. Leases for leisure operators tend to be longer than for retailers, and the
30 autumn 2012
average length left on the leases in the scheme is 14 years. However, Land Securities aims to introduce one or two quality new entrants each year in order to keep the centre feeling fresh. To increase loyalty and repeat custom, the centre has its own membership card. Consumers who sign up to the scheme receive substantial discounts at many of the outlets including discounts on food bills, beauty treatments and reduced entry to the comedy club. Blake adds that offering linked promotions gives operators in schemes such as The Cornerhouse the chance to maximise the potential of the footfall. The scheme appeals to a range of generations with family
dining and bars oriented to the younger crowd. Nottingham is home to far more in the under-34 age group than the national average with a large student population of more than 48,000 enrolled at the two universities in the city. The centre also promotes special student deals, which also makes sure footfall is busy all through the week and not just on Friday and Saturday nights. Blake says leisure, and particularly dining options, are
helping make centres a destination for locals’ free time and also draw in tourists. There are 11 million tourist visits to the city each year thanks to its many attractions such as Nottingham Castle and the annual Goose Fair, which is the largest travelling fair in Europe. Blake concludes that ownership of schemes such as The
Cornerhouse means Land Securities is learning much about the different ways such centres need to be marketed and this is feeding back into how it markets its retail developments too. “It’s about marketing a destination,” he points out, adding that as shopping in person becomes more of a social activity, this is going to be a discipline that is applicable across all of its marketing activity. “It is all about under- standing what your consumer wants in a location, and building a destination around them. Shopping is a social activity and eating out can be exactly the same, so the more we encourage shoppers to stay and do both, the less inclined they are to stay shopping at home. l
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