Marketgate Shopping Centre

Lancaster, Lancashire LA1 1JF


Investment Considerations

  • Freehold

  • Built on the site of the former market hall at a cost of over £4m
  • Opened 2016
  • Income £400,000 per annum (£8.90 psf) until March 2031
  • 5 yearly open market rent reviews
  • 24% of gross rent
  • Strong covenant - Primark turnover 2018 £3.6bn & PBT £426m
  • D&B Rating 5A1 (lowest possible probability of failure)
  • £4.4m rental commitment (65% of the scheme's rental commitment)

Car Park
  • Owner operated
  • Net income £290,000 pa (an increase of 13% 2018 v 2017 and 20% 2018 v 2016)
  • 17% of gross rent
  • 2018 usage 160,000, 2017 usage 156,000, 2016 usage 146,500

  • WAULT to earliest expiry 5.3 years (5.8 years to expiry)
  • 70% of rent derived from national covenants
  • W M Morrison PLC income to 2023
  • Footfall 4.5 million
  • One of England's heritage cities
  • Geographically isolated - lacks competition


The university city of Lancaster is an attractive, historic, cathedral city in North West England, approximately 55 miles (88 km) north-west of Manchester, 57 miles (91 km) north of Liverpool and 24 miles (38 km) north of Preston.

Lancaster is the administrative centre for the county. It has an extensive catchment area due to its relatively remote location.

The town benefits from excellent road communications being situated 2 miles (3 km) south-east of Junction 34 of the M6 Motorway via the A683. The M6/M65 interchange is approximately 26 miles (42 km) south of Lancaster.

Lancaster station, less than a 5 minute walk from the subject property, is on the West Coast Main Railway line, running between London Euston and Edinburgh Waverley, with journey times from Lancaster at around 2 hours 30 minutes and 2 hours 10 minutes respectively.

Lancaster's main bus station, less than a 3 minute walk to the north of the subject property, has the three main stops within the city centre directly outside Marketgate on Common Garden Street. The routes service nearby Morecambe and Carnforth but go as far as Preston and Blackpool.

Lancaster's closest airport is Blackpool International, 36 miles (58 km) away. Manchester airport is 60 miles (96 km) to the south, which provides access to a wider variety of destinations.


Retailing in Lancaster

The city has approximately 880,000 sq ft of retail floor space (Promis) with Penny Street and Market Street comprising the pedestrianised prime retailing thoroughfares.

The 128,000 sq ft Marketgate Shopping Centre (the subject property), anchored by Primark, is the dominant shopping centre in Lancaster. The smaller St Nicholas Centre (103,000 sq ft), anchored by Next, Boots and Argos, is located on the edge of the town on the corner of Penny Street and Lancaster Gate.

Lancaster has a high proportion of national multiples retailers, together with some more local independent traders situated along a labyrinth of lanes and passageways.

Marks & Spencer immediately adjoins Marketgate Shopping Centre, where Primark anchor the scheme, with T K Maxx and a Vue cinema on the opposite side of the Market Square.

Prime Zone A rates are currently around £65 psf on Penny Street, Marketgate offers a significant discount to this representing good value for retailers.


The Marketgate Shopping Centre is strategically located in the heart of Lancaster's historic city centre, with entrances on Market Street, King Street and Penny Street. Built in 1995, it provides approximately 127,745 sq ft of retail accommodation over a single level L-shaped scheme.

There are two main malls namely Cornmarket, which runs westeast, and Marketgate, running northsouth with a total of six lanes/passageways which link into the scheme. Cornmarket is fully enclosed, whilst Marketgate is partially covered by means of a glazed canopy.

Generally the accommodation is arranged with retail sales on the ground floor with ancillary/storage accommodation at first floor level.

The scheme has a total of over 25 units and is currently anchored by a newly built 45,000 sq ft Primark store and Marks & Spencer (which does not form part of the ownership).


The property is held Freehold.


Our estimate of rental value is based upon affordable Zone As ranging from £25 ZA to £55 ZA which offers a significant discount to Penny Street's £65 prime Zone A's.

Current gross rent includes Home Bargains who are holding over at £124,500 per annum and are in negotiations to agree a new lease.

Further information can be found in the Tenancy Schedule below. A copy can also be found within the download section.


The scheme has been predominantly re-based to provide sustainable, affordable rents for the retailers.

Since acquiring the shopping centre in 2014, the current owners have engaged with the tenants and re-based a number of leases, including Shoezone, Waterstones, W H Smith and The Works. In addition, the New Look rent has been reduced from £375,000 per annum to £168,500 per annum following the company's CVA.

Built on the site of the former indoor market hall, the opening of the Primark store in August 2016 has created a significant draw and improved the appeal of the scheme.


The asset has been elected for VAT and VAT will therefore be chargeable on the purchase price if it is not possible to arrange for this transaction to be treated as a Transfer of a Going Concern (TOGC).


All supplementary information, including EPCs, is available on the password protected marketing website:

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