Rent-free offer to fill Liverpool One shops

Sep 13 2008 by Bill Gleeson, Liverpool Daily Post

LIVERPOOL One has been forced to offer substantial rent-free periods in a bid to fill its shops.

The Duke of Westminster, the owner of Liverpool One developer Grosvenor, revealed that the economic downturn has meant rent- free periods have been offered to attract shop tenants ahead of the opening of the second phase of the £930m development at the start of next month.

In an interview to be broadcast during this weekend’s LDP Business Week radio show, the Duke tells Daily Post business editor Bill Gleeson that he remains confident the project is viable over the long-term.

In the programme, which can be heard on CityTalk105.9 at 11am tomorrow, the Duke says: “We are in it for the long term.

“Times are tough. They will be tough for a year or so, but 99 years is a long time and I can afford to look at that time length.”

Asked about rent-free incentives, the Duke said: “That’s standard practice, when times are tough.

“In the last three recessions I have been through, we have had those practices. If we have to offer incentives for people to come in, we will do so.

“Activity is much better than empty shops.

“Sure, one takes a hit in the short-term, but in the long-term it will be good. We were very content with earlier rental levels, but the market has softened quite considerably and we have to re-adjust to that.” The rent-free strategy appears to have paid off. More than 80% of Liverpool One’s 179 shop units have been let.

Tenants include John Lewis, Debenhams, Austin Reed, Flannels, Liverpool FC’s shop and Zara. Just last week, John Lewis, which opened in May as part of the development’s first phase, revealed takings in the first three months of trading were 14% ahead of target.

The Duke said he was “delighted” with the way local people had taken to the Liverpool One development.

“We have had a very positive response to it.

“We have stemmed the flow of shoppers going down the M56 to shop elsewhere. They were going all over the place.

“This is why Liverpool was in the state it was. The money earned in Liverpool was not being spent in Liverpool. It was paying somebody else’s rates.

“We now have clear evidence people come from the other side of the Pennines to shop in Liverpool. We have busloads of people coming from Leeds and Sheffield for the day. It is a scheme that I am particularly proud of.”

OPINION: PAGE 6

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