Hammerson gets backing for EUR 1 bn Leeds scheme

Hammerson and Leeds-based Town Centre Securities have received preliminary planning consent for a EUR 1 bn mixed-use development that will transform the centre of Leeds, northern England. The two property firms have set up a 90/10 joint venture to develop a 100,000 m² retail-led scheme which will regenerate the Eastgate and Harewood districts of the city.

Anchored by a 24,000 m² John Lewis store, the plan will include over 100 retail units, restaurants, bars, and offices as well as a cinema, an hotel, up to 600 new homes and 2,700 parking spaces. The go-ahead decision follows three years of public consultation. The two companies submitted a planning application in July 2006. Construction is expected to start in 2009, with completion in 2012.

'The regeneration of the Eastgate & Harewood Quarters will bring a rundown area of the city into public use, by providing a fantastic living, working and recreational environment which reflects the needs and aspirations of the people of Leeds', said Town Centre Securities ceo and chairman Edward Ziff.

Hammerson is a leading European property company, with operations in the UK, France and Germany. The group invests in and develops shopping centres, retail parks and prime offices. Its high quality portfolio of around 1.2 million m² of retail space and over 270,000 m² of prime offices, is valued at £6.3 bn. Hammerson is listed on the London Stock Exchange and Euronext Paris and converted to real estate investment trust (REIT) status in January.