Newport
Isle of Wight
Background
The bus station in Newport was owned by Southern Vectris. They wished to identify a developer who could redevelop their site and build a new bus interchange, whilst providing continuous trading.
Strategy
Terms were agreed to develop the site for retail purposes, providing large retail units (of type not available in the town centre) totalling 75,000 sq ft, over three floors. Major consultation took place with all stakeholders to deliver a satisfactory solution for the new bus interchange and delivery of a commercial solution. There was also an adjoining block of 15,000sqft included in the purchase, that required to be retained and was occupied as offices, where there was clear potential to convert to a large retail unit.
Outcome
The initial phase of 4 retail units were let to Peacocks, Hennes, Sportsworld and New Look and sold on Practical Completion for £14m, a yield of 5.5% . The second phase, the conversion of the office building, was pre-let to Next and sold for £3m, a yield of 5.5% . The new bus interchange was completed on time, on budget and continuous trading was maintained for their operation during the build works.
