A North Wales shopping centre has been bought by a Welsh developer and retail investor. Bearmont Capital has purchased The Menai Centre in Bangor city centre with the aim of reviving the struggling shopping centre and high street.
The centre was developed back in 2007 by Cathco Property Group and cost £18.5m to build. The 130,000 sq ft building is currently 80% vacant after losing big names like Debenhams during the pandemic.
Rob Lloyd, chief executive of Bearmont Capital, said the centre’s main challenge is the departure of Debenhams, the original anchor tenant for the centre. He said: “Footfall has dropped significantly which has had a major impact on the centre and the high street in general. Also, there has been the rise of online shopping and the pandemic hasn’t helped, which have impacted on high street shopping across the UK.
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However, Mr Lloyd sees the future of shopping centres as needing to reduce the number of shops in the main high street and adapt to the changing retail landscape. He said Bangor has the longest High Street in Wales which needs reducing in the long term.
“There is far too much retail in the city centre together with a lot of derelict property,” he said. “Coupled with out-of-town retail units it’s just too much and it is not sustainable so other uses need to be looked at for example assisted living, residential and leisure and bringing in artisan style businesses.”
He added: “It’s all about trying to find a balance that works for the local community and also to attract others to the town so it has to be appealing. I like the idea of a diverse offering that not only includes National and regional operators but also going back to artisan-style businesses like the old days might not be a bad idea as other towns have done it successfully. It's all about being creative and exploring new ideas.
“We have to roll our sleeves up to make things happen the good news we already have a number of units under offer and in legals and it’s important to get some good news out as soon as possible."
“We maintain close relationships with numerous retailers, which provides us with insights into their expansion plans. A critical aspect of purchasing a shopping centre is ensuring that the initial price is appropriate to accommodate potential shortfalls, particularly as rents decrease. In some instances, rents are decreasing by half due to economic conditions, particularly for historic units where rental rates have been high and are no longer sustainable.”
Bearmont Capital's immediate focus for The Menai Centre is to attract new tenants and offer competitive deals, while exploring new ideas to make the shopping experience more appealing for the local community and visitors.
The vacant Debenhams store will be central to the redevelopment, with the property developer working closely with the local authority to bring in a use that will drive footfall and create a hub to fill the void.
My Lloyd said: “The local authority and our development team share a common vision for revitalising the city. We aim to provide them with the necessary assurances that we are committed to effecting positive changes, and as always, we will take an active role in enhancing the commercial hub by attracting viable tenants, ensuring reasonable rental rates, and offering more flexible lease agreements."
Bearmont has appointed Mason and Partners Liverpool office to deal with the lettings and management of the centre going forward. Local agent Richard Baddley of Richard Baddley & Co is dealing with the council on behalf of the group.
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