The presence of fashion store New Look is a boost for Freshney Place
AN upbeat note has been sounded on the first 12 months of Grimsby's Freshney Place since its acquisition by North East Lincolnshire Council.
According to Queensberry Real Estate, which has been managing the shopping centre for the council, it has been "a very positive initial period".
A report from Queensberry states: "Occupancy rate for the 89 units has increased from 77.3 per cent in September 2022 to 90.4 per cent in September 2023."
The 19 lease transactions include:
• Vision Express and Deichmann committing to Freshney Place.
• Securing retail giant New Look.
• Relocation of key retailers such as Segal’s, Card Factory and The Works.
There has been greater interest in Friargate than Baxtergate, but there are high hopes that NHS plans to create a "Community Diagnostic Centre" in the latter might be transformative.
This would include chiropractors, opticians, dental practices among others. Work on the venture is due to start next month.
Say Queensberry: "This will drive a different type of visitor."
It is hoped that the proposed cinema will also provide a major tonic, though not much detail is provided in the Queensberry report.
Particularly gratifying has been the outcome of efforts to claw back rent debts incurred under the centre's previous owners.
"Some £198,185 of historic arrears have been collected which relate to periods prior to NELC ownership.
"These historic arrears were written off by the previous owner and passed to NELC as part of the acquisition of the centre.
"There was no expectation of any recovery of these amounts,
However, through "positive engagement and perseverance", over 50 per cent has been recovered, says Queensberry.
Despite costs and downward pressure on rents, income for Freshney Place is described as stable at circa £1.1-million.
Disappointingly, total footfall remains down 25 - 30 per cent down on pre-Covid levels, but this is aid to be "in line with the picture across the country".
The report says: "Footfall figure for 2022 was over 6.5-million.
"While this is broadly in line with national trends, the footfall position during the current calendar year has continued to grow year on year, currently tracking above national and regional averages.
"The key contributor to this uptick in footfall is the increase in office workers operating in the town centre.
"Any opportunity to further concentrate office take-up in the town centre would therefore be seen as a significant positive for Freshney Place."
Also boosting visitor numbers over the past 12 months have been special events such as:
– Barbie movie.
• Christmas – elf station and Santa visit.
• Halloween - Creepy and the crawly event.
• Easter events such as face painting and trails.
• Promoting tenant offers regularly over social platforms.
• Viking crafts sessions in the summer – Grimfal Fest.
• Random acts of kindness.
• Coronation Event in May.
On the downside, car parking income has been lower than what was anticipated.
The empty House of Fraser building remains a concern but it is outside the control of NELC - the landlord is believed to be Chester West Council.
Says the report: "This is a key frontage on the high street and Friargate in Freshney Place.
"While unoccupied, this has a detrimental impact on the vibrancy of the town centre and the scheme itself."
Regarding the M&S and Next stores, NELC has no direct landlord-tenant relationship with either, thereby limiting influence over their future decision making
The next 24 months are likely to be of crucial importance to Freshney Place because no fewer than 33 leases expire.
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