Pictured: CGI of Longbridge town centre
The considerable value of food stores - some of which can be
worth around £20 million - is not only creating development
activity in a challenging market, but also acting as a catalyst for
much wider regeneration, reports Paul Brewer, director and head of
retail at GVA's Birmingham office.
Paul Brewer comments: "New food stores typically require between
five to eight acres of land and have a value of between £1
million - £2.5 million per acre. This is the one of the
highest land values per acre for any development activity, enabling
the value of the rental payments, or the sale of the land, to
trigger wider regeneration activity in the immediate area and the
wider community the new stores will serve."
At Longbridge, an 85,000 sq ft Sainsbury's store will anchor the
wider £70 million town centre development, which received
planning permission in July 2011.
In Telford, a 100,000 sq ft ASDA store development is delivering
significant public realm benefits to the town centre and
contributing towards the creation a new South Water leisure
quarter.
The redevelopment of Stafford town centre, which is focused
around the Kingsmead and Riverside development proposals, is
benefitting from the value created by a Morrison's store. A
planning decision is imminent for both redevelopment
sites.
GVA's sale of the 13 acre former ATP automotive site in
Hednesford to St. Modwen has created the regeneration and rebirth
of the area with the development of a new town centre, anchored by
a new Tesco store.
A total of three new food stores are being developed in
Wolverhampton. A new Sainsbury's store is incorporating the
regeneration of dilapidated and derelict listed buildings in the
centre of the city. While a new Tesco store will be developed at
the former Royal Hospital site, which will incorporate further
space for additional retail premises. It is expected that three
hours of free parking will be granted by the supermarket operators
on both sites to encourage shoppers to spend additional time - and
money - in the town centre.
Paul Brewer adds: "Local Authorities, developers and supermarket
operators are working better than ever before to deliver wider
regeneration benefits to local communities. It is often the case
that without a new food store, there would be no catalyst to
kick-start such activity. Food stores represent a significant
proportion of development activity taking place across the country
at the present time."