News Archive

ST MODWEN EXPANDS WYTHENSHAWE OWNERSHIP

St Modwen Properties PLC, the town centre regeneration specialist, has purchased the former long leasehold interest in the former Co-op department store in Wythenshawe, Manchester, from North West Co-op for £5 million. The deal sees the value of St Modwen’s investment in Wythenshawe nearing the £30 million mark.

The three-storey property comprises 27,000 sq.ft of office space on the upper two floors occupied by the Co-op which has taken a leaseback from St Modwen for five years and 36,000 sq ft of retail accommodation on the ground floor which is let to a variety of tenants including Bon Marche, Superdrug, Halifax and Lloyds TSB. The total rent roll is some £ 342,000 pa.

This purchase, in addition to providing additional some short term asset management opportunities, completes the key acquisitions needed to undertake the second stage of the regeneration of Wythenshawe Town Centre.

It follows hard on the heels of last month’s announcement that Asda was acquiring the Co-op superstore and would open in May this year and earlier acquisitions of the Kwiksave unit and two redundant residential tower blocks.

Paul Batho of St Modwen commented “The investment of a further £5m underlines St Modwen’s continued belief in the regeneration of Wythenshawe and its latent potential to become a major retailing centre. The opening of Asda in the summer will add a top drawer food operator to the centre and will launch the second stage of the centre’s regeneration. “

Notes to Editor

Wythenshawe Town Centre masterplan was approved by Manchester City Council’s executive last July. The town centre masterplan envisages a total investment in Wythenshawe of up to £130 million over the next ten years. The vast majority of this will come from the private sector.

Other proposals in the first phase of the second stage, which runs until 2009, include the creation of a new bus station with better links to the shopping centre, improved shopping and the creation of a new leisure facility between Wythenshawe Forum and The Birtles.

St Modwen and the City Council have been working closely on the regeneration of the Wythenshawe town centre since 1996 when St Modwen entered into a long term lease/development agreement with the City. The first stage was the relocation of the market, the upgrading of the malls, new retail space built in Haletop under or fronting the multi-storey car park and a general refurbishment programme improving the entire centre.

St Modwen in conjunction with the council, is currently drawing up plans for a development on the site of the Park Court and Violet Court tower blocks which are now being demolished. This will include more retail and office space. Plans are also being drawn up for the former Kwik Save store which closed last May.

In the longer term, there are plans for a town centre hotel and modern office space to tap into increased demand created by the growth of nearby Manchester International Airport.

For further information contact Paul Batho of St Modwen (01925 825950). Issued by Paul Raymer of Howle Chapman Raymer (0121 236 7771)