Multi Development in EUR 521 mln Bath regeneration scheme

The UK division of Multi Development has confirmed that it signed a joint venture agreement with Morley Fund Management last week for a EUR 521 mln regeneration in the centre of Bath in the southeast of England. A subsidiary of the Dutch-based Multi Corporation, Multi Development also announced on Thursday that it has secured department store Debenhams as the retail anchor for the redevelopment. Debenhams has agreed to take a 25-year lease on 11,600 m² over four levels which form part of the overall 56,000 m² Southgate project.

The store, Debenhams' first in Bath, will be on the corner of Manvers Street and Dorchester Street in the world heritage site. Multi said department stores are underrepresented in Bath. 'The letting by Debenhams means shoppers will have access to one of the country’s leading retailers. It also means more jobs for locals, which is good news for the community.'

A week ago Multi signed a joint venture agreement with Morley Fund Management to regenerate the 8-acre site with the addition of 35,567 m² prime retail space, 3,522 m² for leisure activities, 2,278 m² of restaurant space and over 90 residential units. The scheme includes retail, leisure and restaurant space, 90 residential units and an integrated transport hub with a state-of-the-art bus station and a new 724-space underground parking facility. Several new public spaces and streets will also be created, Multi said.

Multi and Morley expect to begin construction work in January next year and to complete the redevelopment by 2011. Southgate is Multi's first UK property investment since the announcement the company would be de-listing from the Dutch stock exchange to become an investor/developer. Multi now has three redevelopment schemes in the UK: Victoria Square in Belfast, Summer Row in Wolverhampton and Southgate in Bath.