SEPTEMBER 2006
REDEVELOPMENT & REGENERATION IN FLINT

Why HMG has chosen to invest in Flint and how the redevelopment of Flintshire Retail Park has assisted in attracting both retailers and customers to the town

A few years ago, Flint may not have been top of every property investor’s list as a promising area for investment, but there is now a real buzz about the town. National multiple retailers are keen to be represented and it looks like the area is set for a period of sustained growth.

HMG first noticed the potential for enhanced returns in the town two years ago, when it purchased the Flintshire Retail Park for £7.25m. The Park is well located on the main road through Flint and with an average total population of 12,000 in Flint and 132,000 in the Flintshire area, the potential to attract a wide variety of people. However, the Park was in great need of redevelopment and modernisation of some units.

Hollins Murray Group (HMG) decided to invest over £600,000 redeveloping and redesigning Flintshire Retail Park including improved landscaping, on site security 24 hours a day, a new traffic management layout including changes to the access routes and traffic calming measures in the existing car park.

HMG created a new 9,074 sq ft (843 sq m) purpose-built Argos unit at the Park, with the retailer now trading from the new store, as well as receiving planning permission for a speculative 22,000 sq ft unit to house two or more retail units.

This has led to increased rental growth, with the average rent per sq ft at the Park having risen from £5.50 per sq ft to a current headline rent of nearly £10 per sq ft, whilst the overall investment value of the Park has risen to £13.5m – an increase of 19% in just two years.

B & M is the latest retailer to join a wide mix of outlets, including Argos and Bewise, taking a 9,938 sq ft unit on a 10 year lease at a rent of £95,000 per annum. The retailer, which specialises in providing top brands at bargain prices, has 24 stores across the North of England and Wales and offers 5,000 different product lines, changing on a weekly basis; from toys to toasters and healthcare products to home furnishings.

Andrew Murray, Chief Executive of HMG, comments: “Since we purchased Flintshire Retail Park we have invested substantially in its upkeep and development. The development of new units and improvement to the existing car parking has led to increased rental growth and growth in the overall value of the Park. We are delighted that this has attracted big name retailers such as Argos to open new stores at the Park and provided a much improved shopping experience for the people of Flint that will help to boost regeneration of the wider area."

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