Case Studies

Bourdon Shopping Centre Portfolio, Yate

Part of a portfolio of 11 shopping centres purchased in January 2003 for £318 million. Footfall at Yate doubled. Prime rents grew from £65 to £90 Zone A in two years. The 11 shopping centres were sold to multiple buyers in 2004 and 2005 for a total of £476 million. Annualised Investor Rate of Return 55%.

Yate Shopping Centre (between Bath and Bristol) was a 1960s retail development that, while fundamentally sound, had been neglected.

Market opportunity

To increase the shopping centre’s value by boosting rental income through increased footfall, improved tenant mix and the exploitation of unused space.

Strategy

We replaced a redundant bandstand with the new Mall Café, a 2,750 sq ft contemporary glazed pavilion leased to Boswells Coffee Company on a 15-year lease. This single innovation generated £55,000 of additional annual income, lengthened average dwell time and doubled footfall in a level market. The dramatic improvement in footfall was confirmed by the installation of a new camera-based monitoring system. Vacant lots were split or consolidated to attract a broader range of higher-rental tenants and improve the tenant mix. We also exploited previously unused spaces with the installation of a florist kiosk, mall units and a photo-booth to maximise rental income.

Read some of our Testimonials »