Retail park sold three years after £15m overhaul
PARC Tawe Retail Park has been sold just three years after a massive £15m redevelopment of the Swansea shopping and leisure destination.
A deal has been struck by former owners Hammerson to sell the Swansea retail park to a company called Centurion Tawe Ltd.
The new owners are currently in discussions with various potential stakeholders and there has been “firm interest” in a number of the empty units by big retail names, the Western Mail has learned.
The takeover which concerns the south of the retail park, with the north being a separately run venture by Picton Capital, comes just three years on after Hammerson moved in and completely refurbished it, in what was said at the time to be a move to make it a “leading, contemporary and attractive retail destination”.
After the revamp, which got under way in January 2017, it got off to a promising start, with big names arriving including Denny’s American Diner and a Costa drive-thru, which joined the likes of long-time occupants Odeon and Plantasia. But the park has never been full. It currently has 10 empty units – half of the total 20.
Hammerson had indicated there were promising signs around the corner, with “advanced discussions” taking place for a new permanent tenant to move into the vacant former Toys R Us store.
But it came to nothing and the huge unit has been occupied on a temporary basis by integrated youth charity Circus Eruption since January 2019 in an agreement via Charity Lets.
Parc Tawe was built in the late 1980s, and in the 1990s it was the place to be and a regular hive of activity for teens and young families.
Popular fixtures were the UCI cinema, which later became Odeon, the mainstay bowling alley and Plantasia, as well as Joe’s Ice Cream, Toys R Us and Dinky Donuts.
But its fortunes began to wane, which led to the property developer stepping in to transform it.
Hammerson says the sale follows a “strategic decision” to exit the retail parks sector over the medium term to create a more focused portfolio.
It has not disclosed the individual sale price, but Parc Tawe, along with Abbey Retail Park in Belfast were sold as part of the “strategy” and generated combined proceeds totalling £55m.
Hammerson chief executive David Atkins said: “Against a challenged retail and investment backdrop we have exited the retail parks sector. Having achieved disposals of close to £1bn since the beginning of 2019, our focus remains on strengthening our balance sheet to create further resilience.
“The completion of this strategic disposal enables us to create a more concentrated portfolio of flagship venues, premium outlets and City Quarters which we expect will deliver greater levels of both income stability and growth over the medium term.”
Chief executive of Swansea Business Improvement District Russell Greenslade welcomed the news of the takeover.
He said: “We are pleased to see Parc Tawe enter a new chapter, with the prospect of some more strong brands set to move into the site. Parc Tawe has seen major investment in recent years and the site is central to the ongoing regeneration of Swansea city centre.
“There has been a lot of hard work going on behind the scenes to ensure the collective blueprint for our city centre comes to fruition. This latest news underlines the fact that our city centre has a bright future ahead. Let’s get back to business.”
Castle ward councillor David Phillips added: “The idea that there is positive interest in the empty retail units at Parc Tawe can clearly only be good news.
“Along with other people I hope it is not in vain and I hope it transfers into something concrete in the future. For too long has Parc Tawe seen inactivity, and if this is a sign of a rebirth it can only be welcomed.
He added: “Post Covid, Swansea is going to need more successful businesses. There needs to be serious discussions across Wales in government at local and all-Wales level.
“The horizon is clearly changing. Retail is not just an important part of society, it is important for employment too.”