Newcastle – Royal Quays Outlet Centre

“… a full and immediate 1% increase on initial yield”

In 2006 the opportunity to purchase the existing 120,000 sq ft Royal Quays Outlet Centre arose. So, based on our knowledge and experience in this market and the clear latent potential of the project, we decided to take up the challenge. The business plan entailed a comprehensive restructure of onsite management and practices, resulting in a significant decrease in service charge expenditure and an increase in net income. This was possible due to the unique nature of the letting arrangements and resulted in a full and immediate 1% increase upon the initial yield. Subsequent high profile lettings have raised the status of the scheme which is now recognised as the premier outlet centre for Newcastle and Tyneside.

Retail sales from the scheme continue to grow despite the economic environment. Targeted strategies saw an initial restructuring of anchors around Nike, Gap and an extension to Marks and Spencer. Current strategies focus on catering and branded occupiers. Planning consent has been obtained for an adjacent garden centre of some 25,000 sq ft gross. The centre continues to attract major and exciting new outlet retailers as shown by the only Land Rover outlet in the UK.