Hammerson looks to convert Debenhams store into new rental homes
16/03/2021 11:34
March 16 (Reuters) - Shopping centre operator Hammerson
HMSO.L said on Tuesday it has submitted plans to convert a
former Debenhams store into new homes for rent, amid a steep
fall in valuation of properties focused on the retail sector due
to the COVID-19 crisis.
The plan submitted to the Leicester City Council proposes
redevelopment of the former Debenhams store at Highcross, St
Peter's Lane into more than 300 homes, with Hammerson joining
hands with build-to-rent operator and developer Packaged Living
for the project.
"While the structural shift in retail and changing consumer
shopping habits have meant that destinations such as Highcross
need to adapt their offer and mix of uses, well-connected city
centre locations such as this will always be places where people
want to be," said Mark Bourgeois, managing director UK and
Ireland at Hammerson, in a statement.
Shopping centres in the UK are set to be fully operational
only by mid-May as per the phased exit plan from the latest
round of COVID-19 restrictions which have kept shoppers at home
and led to widespread rent deferrals by retailers.
Last week, Hammerson sounded a warning about its longer-term
debt and also launched asset sales to bolster its finances.
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In January, online fashion retailer Boohoo bought the
Debenhams brand and other business assets, including all its
in-house brands and websites, out of administration, but the
deal excluded Debenhams' stores and its 12,000 staff. All
Debenhams' UK stores will permanently close this year.
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In 2020, British clothes retailer Next NXT.L opened
standalone beauty halls in former Debenhams stores, snapping up
the space in five shopping malls owned by Hammerson.
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(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Shailesh Kuber)
((abyjose.koilparambil@thomsonreuters.com; +91 (0)8061822683;))