Morrisons looks to build 70,000 sq ft store in Gloucester
Supermarket chain Morrisons is looking to build a new 71,000 sq ft food store in central Gloucester following the exchange of contracts by LXB Retail Properties to acquire an 18 acre site in the city¬ís Metz Way.
Morrisons will take a 25 year lease for the new store which will be built on part of the proposed mixed use site. The lease is conditional on securing an appropriate planning consent and there is a tenant’s break option at 20 years.
LXB Retail said it intended to submit a planning application immediately for a new leisure and retail complex on the £6.1 million site of which the Morrisons store will form a part. Construction will begin in 2012 with completion of the food store in 2013.
Metz Way forms part of a wider regeneration programme known as the Railway Triangle Corridor which is being promoted by Gloucester Heritage Urban Regeneration Company (“GHURC”).
Commenting on the acquisition Tim Walton, CEO of LXB Manager LLP, said: “We are delighted to have concluded another major acquisition for LXB, and to announce a second significant pre let with Morrisons."
He continued: "Metz Way is the largest vacant site in the city under one ownership and has been derelict for over 20 years. The high cost required to access, service and decontaminate the site, has previously meant development was not viable, however, the foodstore anchor tenant will enable the site to be opened up without recourse to any public funds and, along with the employment space, we expect it will create up to 1,000 jobs in an area that suffers from high unemployment."
Last month, LXB Retail announced that it had acquired two long leasehold interests in two adjoining sites in Stafford for £10.1 million for a 220,000 sq ft retail scheme.
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