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- Jun 11, 2007
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John Lewis ends long Brighton search with North Street buy
Property Week has learned the upmarket retailer has bought the Boots site on 129-133 North Street, in the heart of the city, from the BP Pension Fund for around £20m. The purchase, which also includes two further shops, represents an initial yield of around 5%.
John Lewis would not comment on the precise plans it has for the site, but local agents suggested it would build a department store of around 130,000 sq ft, and may seek to add a Waitrose supermarket to the scheme.
The city has been at the top of the John Lewis’ wish list, but the requirement has been difficult to satisfy due to the availability of suitable property and the topography of the city centre.
Boots has six years to run on its lease, and it will not be until the 2021 that John Lewis can redevelop the site and adjacent land.
The purchase is seen as strategic manoeuvre for John Lewis to gain representation in Brighton, with the future development to play a major part in the regeneration of North Street.
Public-realm works are under way in the area to widen the pavement, reduce the number of buses and introduce street furniture, planters and trees as part of West Register’s development of the area fronting North Street and The Lanes.
“North Street currently trades at less than 50% of traditional prime rents in Brighton,” said Rupert Guy of Kitchen La Frenais Morgan, who is about to launch the sale of the adjoining unit on behalf of IGNIS/SLI. The units are let to Sainsbury, Poundland and Sportsdirect, and will go on sale for around £12.5m, reflecting an initial yield of 5%
A John Lewis spokeswoman confirmed the company now owned the North Street property. “This will not impact the current tenants,” she said. “We do have an ambition to eventually have a presence in Brighton, but plans for this are a considerable way off.”
Property Week has learned the upmarket retailer has bought the Boots site on 129-133 North Street, in the heart of the city, from the BP Pension Fund for around £20m. The purchase, which also includes two further shops, represents an initial yield of around 5%.
John Lewis would not comment on the precise plans it has for the site, but local agents suggested it would build a department store of around 130,000 sq ft, and may seek to add a Waitrose supermarket to the scheme.
The city has been at the top of the John Lewis’ wish list, but the requirement has been difficult to satisfy due to the availability of suitable property and the topography of the city centre.
Boots has six years to run on its lease, and it will not be until the 2021 that John Lewis can redevelop the site and adjacent land.
The purchase is seen as strategic manoeuvre for John Lewis to gain representation in Brighton, with the future development to play a major part in the regeneration of North Street.
Public-realm works are under way in the area to widen the pavement, reduce the number of buses and introduce street furniture, planters and trees as part of West Register’s development of the area fronting North Street and The Lanes.
“North Street currently trades at less than 50% of traditional prime rents in Brighton,” said Rupert Guy of Kitchen La Frenais Morgan, who is about to launch the sale of the adjoining unit on behalf of IGNIS/SLI. The units are let to Sainsbury, Poundland and Sportsdirect, and will go on sale for around £12.5m, reflecting an initial yield of 5%
A John Lewis spokeswoman confirmed the company now owned the North Street property. “This will not impact the current tenants,” she said. “We do have an ambition to eventually have a presence in Brighton, but plans for this are a considerable way off.”
