Development

Development

Our development team works closely with our fund teams to identify opportunities to improve asset management performance through both piecemeal and comprehensive development. Armed with this understanding and the skills within the development team, our services can be tailored to match client and project needs precisely. The overriding objective is to deliver value and excellence to our clients.

Recent development highlights:

- Completion of phase three at the c.600,000 sq ft (c.57,000 sq m) designer outlet Florentia Village Jingjin in China.
- Opening of the c.500,000 sq ft (c.47,000 sq m) designer outlet Florentia Village Shanghai in China.
- Completion of a c.54,000 sq ft (c.5,000 sq m) expansion at Barberino Designer Outlet in Tuscany, Italy.
- Completion of The Steward Building, Spitalfields, London, UK, a 50,000 sq ft (c.4,650 sq m) Grade A office development, which also includes c.10,800 sq ft (c.1,000 sq m) of retail.
- Opening of c.48,500 sq ft (c.4,500 sq m) extension at McArthurGlen Swindon Designer Outlet, Wiltshire, UK.
- Completion of a c,74,000 sq ft (c.6,900 sq m) extension at McArthurGlen Designer Outlet Neumünster in Germany.
- Detailed planning permission received for a 900,000 sq ft (c.84,500 sq m) NIA high-quality building at 40 Leadenhall Street, London, UK.
- Detailed planning permission received for a 307,500 sq ft (c.28,000 sq m) NIA prime office building at 70 St Mary Axe.
- Planning consent granted for £850m (c.$1.3bn) Edinburgh St James development, which will create over 1 million sq ft (93,000 sq m) of high-quality retail space, a luxury hotel and up to 250 new homes.

 
Colin Palmer

Colin Palmer

Director of Development Management

Colin's biography
Both individually, and as part of the team, we are armed with significant development experience and professional qualifications, which range from cost management and building services engineering to project management, surveying and architecture.
Geoff Harris

Geoff Harris

Head of Development

Geoff is responsible for the management of property development throughout the UK and Europe. He has 33 years’ experience, initially working as an engineer before moving into property development.

+442037278152 More about Geoff
Joe Magrath

Joe Magrath

Director of Development, China

With 18 years’ experience in Greater China real estate, Joe is responsible for directing our development activities across China, and overseeing our growing development activity in the greater Asia-Pacific region. His experience includes consulting in master planning and design, project management and development feasibility.

+862122310478 More about Joe
Russell O

Russell O'Hare

Director of Projects, Development

With over 20 years’ experience in construction and property development, Russell is responsible for the provision of development-related advice and support to a number of funds across a wide range of property sectors, including retail outlet malls, retail shopping centres, retail warehouses and commercial offices.

+442037278178 More about Russell
Colin Palmer

Colin Palmer

Director of Development Management

Colin is the Director of Development Management and is responsible for coordinating the activities of the Development Management team on all European developments. Colin has more than 30 years’ experience in the UK Property market, working initially within the contracting sector before moving into property development.

+442037278180 More about Colin
Martin Perry

Martin Perry

Director of Development

Martin is Director of Development, specialising in large-scale, retail-led, mixed-use development, and is responsible for management of developments in the UK and across mainland Europe. In particular, Martin is responsible for the Edinburgh St James regeneration project.

+442037278185 More about Martin
Leadenhall Triangle, City of London

40 Leadenhall Street, City of London

Planning permission was achieved in 2014 for a 900,000 sq ft (c.84,500 sq m) NIA high quality building at 40 Leadenhall Street, London, UK. The development varies between 7 and 34 storeys, with its highest point 154m above ground level.  

Sustainability is high on the design agenda: The building will reduce carbon emissions by over 40% compared to current regulations, and will achieve Excellent BREEAM standard with measures to reduce solar gain, parking for 1,067 cycles and almost 100 showers. 

The scheme is capable of being brought forward this year with completion anticipated by autumn 2019.

St James, Edinburgh

Edinburgh St James, Edinburgh, UK

A world-class example of city-enhancing place making, Edinburgh St James is one of the UK’s largest and most significant regeneration projects, which we are proud to be the developers of.

With an estimated value of over $1.4bn, the development, which is one of the assets within our UK Shopping Centre Fund, will create 1 million sq ft (c.93,000 sq m) of high-quality retail space, a luxury hotel and up to 250 new homes. A landmark development within a celebrated European city, Edinburgh St James provides a unique opportunity to create a place where shoppers, residents and visitors can indulge and relax.

In April 2014, an innovative funding agreement between the City of Edinburgh Council, Scottish Government and TH Real Estate was agreed, providing c.$92m to improve local infrastructure and public space in the area. We plan to start construction in 2016, with completion due in 2020.

Castel Romano, Castel Romano

McArthurGlen Castel Romano Designer Outlet Italy

In 2013, our Outlet Mall Fund opened its third phase at McArthurGlen Designer Outlet Castel Romano in Italy. The 7,500 sq m expansion created space for a further 43 stores, adding to an extensive list of luxury brands such as Michael Kors, Furla and a flagship Burberry store. The Fund acquired the asset in 2005. This new opening comes after two previous extensions following the asset’s creation in 2003. It is now one of the largest designer outlets in Italy with 160 stores and 30,000 sq m of retail space. Managed and developed by McArthurGlen, the designer outlet can be reached within 20 minutes from the centre of Rome. It has become increasingly popular with brand-conscious shopping tourists due to tax-free sales, with Russian and Chinese consumers providing particularly high footfall and spending. Designer outlets have been one of the strongest performing retail sectors across Europe over the past decade. We have seen particularly high footfall across our Italian portfolio and are delighted by the success of the first two phases of the McArthurGlen Designer Outlet Castel Romano. The first class tenant line-up, coupled with the resilient nature of the outlet sector and McArthurGlen’s expert management, continue to prove a winning combination for our investors.

Metropolis, Rende

Metropolis Shopping Centre Cosenza

In response to the hypermarket’s declining sales, our Italian team, on behalf of our European retail fund, Herald, recently completed the first phase of a c.$8m refurbishment. The team devised a strategy to reduce overheads and enhance the store’s configuration. The strategy offered the additional benefit of recovering prime retail space in which a new mall was formed. The design offered twelve prime retail units totalling 1,560 sq m (GLA), all of which were pre-let to a mix of national and international brands, including Harmont & Blaine, Blue Spirit and Accessorize, who have subsequently outperformed sales expectations. The food court has also been renovated and money has been invested into aesthetics across the centre.

Miramar Retail Park, Mijas

Parque Miramar Fuengirola Spain

Throughout 2012/13 our development team worked closely with the Herald fund and their JV partner to deliver a significant asset management initiative at this leading regional shopping centre. Development rights and building licenses were obtained to develop two new anchor stores of 4,000 sq m and 2,000 sq m. Primark was secured as the tenant for the larger unit with a 15-year lease, and the second unit was developed speculatively. Construction works commenced in the summer of 2012 and the retail shell works were completed on time and within budget in May 2013. The development team continued to support Herald during the tenant fit-out period, and the Primark unit opened with huge success, on time, in October 2013. In order to further build upon this success, opportunities for roof terrace restaurants and roof deck leisure activities are now being explored.

Florentia Village Jingjin

Silk Road Holdings’ Florentia Villages, Guangzhou and Shanghai, China

Having successfully invested its seed $200m over the past two years, across three outlet mall assets, Silk Road Holdings, the Singapore joint venture established to invest in and develop luxury designer outlet malls in China, raised a further $100m from its shareholders over the course of 2014. The current Silk Road Holdings’ portfolio includes the iconic Florentia Village Jingjin Designer Outlet Centre in Wuqing, which has set the benchmark for luxury outlet shopping in China. The site has undergone numerous expansions, with its third phase opening in August 2014.

Florentia Village Shanghai opened in January 2015. Brands include Gucci, Armani, Ferragamo, Celine, Fendi, Coach, Hugo Boss, Etro, Gap, Michael Kors, DVF, Missoni and Moncler, amongst others in the 166-unit centre.

Florentia Village Guangzhou is making excellent construction progress, with on-track construction completion followed by an opening of Phase 1, comprising 123 stores, set for Q3 2015. Leasing is progressing well.

Two further sites have recently been acquired in 2015, located in Chengdu and Wuhan. Planning and design is underway, with construction anticipated to begin on both sites in late 2015, securing the Florentia Village development pipeline until the end of 2016.

The Steward Building

The Steward Building, London, UK

On behalf of our Central London Office Fund, we recently completed development of The Steward Building, a c.75,000 sq ft (c.7,000 sq m) mixed-use scheme, located close to the edge of Spitalfields Market in London. In line with our commitment to deliver high quality and sustainable buildings fit for Tomorrow’s World, the scheme has been designed to achieve BREEAM Excellent. The top three floors have been let to an office tenant, and the retail units have been let to Anthropologie, COS and Hotel Chocolat. Both office and retail rents set a new benchmark record for the City.

Debenhams - Weavers Wharf

Weaver's Wharf, Kidderminster, UK

Since acquisition in 2006, the Fund has identified and implemented opportunities for asset management through various development and leasing initiatives including:

- Refurbishing and substantially extending a poor-performing listed Victorian mill building to create a new Debenhams department store.

- The anchor letting to Debenhams assisted in agreeing a deal with Clarks on the main retail terrace. This provided rationale for the Fund to increase rents substantially at the first round of rent reviews.

- The upper floors of the mill building were sold on a long leasehold basis to Premier Inn, improving the leisure offer and increasing sales at the existing restaurants.

- In 2012, a letting of the c.30,000 sq ft (c.2,800 sq m) Piano Building was completed to Birmingham Metropolitan College in partnership with Kidderminster College, who required the building for up to 1,000 students per year.

- Also in 2012, an under-utilised public seating area, adjacent to the river, was developed for a new Starbucks café.

- A deal to surrender the existing Brantano lease was agreed back-to-back with a new letting to Boots, that also incorporated a c.1,000 sq ft (c.100 sq m) extension to the unit.

The asset has achieved a 16.5% return during 2014.* In April 2014, the Fund received planning permission for significant development proposals that will further enhance the asset as well as Kidderminster town centre as a whole.

*Source: TH Real Estate, IPD, December 2014.

Note: Past performance is not a guide to future performance.