New lease of life for centre which looked doomed
CRUNCH talks have given hope to a trouble city cnetre shopping mall which looked doomed.
The Peer Group had said its major Newcastle city centre asset Eldon Garden was running on borrowed time, with just a handful of commercial operators left in it and more than 85% empty.
The group blamed the centre’s decline in part on decisions by Newcastle City Council which it said made it harder for shoppers to use the Eldon Garden car park.
But now, following a meeting with council leader Nick Forbes and chief executive Pat Ritchie to discuss a rescue plan, the group has embarked on a strategy to attract new retailers by offering units rent-free for around a year.
And the strategy is already bearing fruit with Peer Group managing director Howard Dawson announcing popular North East restaurant operator Sambuca will open in the centre before Christmas.
Mr Dawson also plans to see the centre back to full occupancy next summer, with a number of potential tenants being targeted.
Mr Dawson said: “We definitely see this as a fresh start for Eldon Garden.
“We have got the conviction and enthusiasm to get it going again and want to get the message out that the centre is open for business.
“I met with the leader of the council Nick Forbes and the chief executive Pat Ritchie and went through the history with them, and to ask them to work with us to create something that’s of value to Newcastle, otherwise we were really at a point where we would close it. They said they appreciated I was there in a positive vein and I shared my thoughts with them for the future of the centre.
“Based on nothing but their words, pledging to help, I spoke with shareholders and our property agents Sanderson Weatherall and Reed Birkett, and we decided to give it our best efforts to reinvigorate the centre.” In October, Peer Group said it was considering a number of longer-term options for the centre which could see it redeveloped into a mixed use scheme, with flats or offices.
For now, the group has constructed a policy of seeking out new occupiers who will able to take on units rent-free for a period of time – potentially a full year – and just pay rates and service charges, to give them a platform to grow their business while also contributing to the regeneration of the centre. Peer Group is willing to forego rent for now in its mission to bring Eldon Garden back to its glory days, anchored by popular Italian restaurant Sambuca. Other tenants have already signed leases and other potential newcomers have shown interest.
“Most of the occupiers are paying rents and service charges and some are paying small amounts of rent, but nothing to make it viable from a rent point of view. But what we want to do is bring it back into use – create footfall and create activity and vibrancy. It’s very much in the heart of Newcastle and is part of the city’s retail pitch and deserves to be in use.”