Delivery & Implementation
Site Assembly & Disposal
Parm Dosanjh was appointed by Sandwell Metropolitan Borough Council to negotiate the regear of the Queens Square shopping centre headlease. A number of redevelopment/refurbishment options have been considered over the last decade, however, these have not come to fruition and in the last 18 months the centre has been taken into receivership. The 200,000 sqft centre is held under an antiquated and highly-geared headlease from the council and has suffered from a lack of investment for many years. There are numerous vacant units and the centre struggles with a steadily declining income stream.
A regearing proposal has now been agreed and new entrances will be built at the centre on the High Street and adjacent to The Public arts centre to tie in with the £200m New Square (Tesco anchored) regeneration scheme. The works include replacing the leaky roof, new lighting and refurbishing public toilets. New escalators will also be installed and shop fronts will be updated. Repairs will also be carried out to the mall floor and ceilings will be replaced and the mall’s fire protection system will be improved with sprinklers installed.
The Council will partially fund the scheme (as part of its ongoing liabilities under the existing lease) and the other half will be met by Fairacre Asset Management which runs the centre on behalf of the receivers.
Parm Dosanjh was responsible for:
- detailed analysis of development appraisals;
- advising on scheme content/design;
- advising on letting assumptions;
- sensitivity analysis on rent and yield inputs;
- drafting of Head of Terms;
- negotiation of a works agreements and new head lease;
- negotiating with Tesco and Fairacre to create a link from Queen’s Square to the proposed 500,000 sqft New Square development to the rear;
- preparing Best Consideration report.