Intu revealed last year that it that it had identified the potential for around 5,000 residential units and nearly 600 hotel rooms, across its portfolio of six out-of-town shopping centres. Plans are most advanced for residential developments at Lakeside, next to the M25 and the Thames to the east of London.
With the retail sector having taken a hammering from online shopping and economic uncertainty, Intu reported a loss of more than £1.1bn for 2018. It is now looking for new revenue streams from its assets. ” We have significant opportunities within the portfolio for alternative uses of some of our available land”, the company said to-day.
We have extensive available land. Our six major out-of-town centres comprise some 760 acres of land, of which less than 40% has buildings, multi-storey car parks or distribution roads upon it, leaving 470 acres of surface car parks and other potentially developable land. The city centre locations also offer opportunities for intensification of uses.”Mixed use opportunities being evaluated include residential hotels and other uses. Initial work has highlighted the potential for around 5,000 residential units and nearly 600 hotel rooms”.
It said: “Initially, private-rented-sector residential opportunities to create a total of circa 1,700 units have been identified which, if fully developed, could in aggregate produce a yield of around 5 per cent on total development costs, excluding land, of around £240m. The most advanced of these projects is at Intu Lakeside, where we could deliver around 1,000 residential units”.
“In addition to the residential and hotel opportunities, further mixed-use opportunities relating to office, flexible working spaces, business lounge and service-oriented uses have been identified that could generate attractive incremental returns to our current rental income stream. Many of these options have a relatively low capital outlay, are quick to implement and take advantage of the current configuration of the centres”,
“All these opportunities, which are under active consideration, would create value directly but moreover would increase the overall attractiveness and catchment of the centres”.