FriarsWalk a bright spot amid Wales’ slow retail rents scene
THE Friars Walk shopping centre in Newport has provided a boost to annual figures for prime retail rents in Wales – but overall the results are less positive.
The latest review by commercial property specialist Colliers International of the UK shopping scene, which monitors rents and empty shops across the country in 421 locations, has shown that only four of the locations in Wales tracked for annual performance have shown any growth.
Nick Turk, retail director at Colliers International for Wales, said: “The main highlight of the year for retail in Wales was the opening of Friars Walk in Newport, where lettings have helped boost the overall prime rental profile in Wales. Here rents increased to £75 per sq ft.
“Technically, these results showed that average prime rental growth was recorded for Wales for the past year, but this has been heavily influenced by new lettings in Newport. The reality is that average rents were down in Wales if one ignores the rental increases in Friars Walk, which took prime rental levels up by from £30 per sq ft to £75 per sq ft.”
Mr Turk was speaking at the launch of the Colliers International Midsummer Retail Report for Wales and the south-west of England.
Mr Turk said: “It now appears that after a prolonged period of stabilisation, the south-west of England is now moving forward with re-based rents, sustained occupier demand and relatively constrained supply.
“The story from Wales is not as positive, with only four centres showing an increase in rents, namely Aberystwyth, Caerphilly, Carmarthen and Haverfordwest. However, although Wales is less strong, it has been bolstered by the Friars Walk opening in Newport.”
He added: “There is also very little development activity in Wales, with the proposed redevelopment of Neath town centre being the only substantial project under consideration.”
Last month the Friars Walk scheme, which extends to 390,000 sq ft, was sold by Queensberry Real Estate to Canadian investment company Talisker Corporation. The value of the deal has not been disclosed, but will ensure that Newport Council can repay a £90m low interest bearing loan it took out with the UK Government’s Public Works Loan Board to finance its construction.