33-39 Gallowtree Gate and 63 Market Place

Leicester LE1 5GD


  • Leicester has the 9th largest primary catchment population in the UK (PMA)
  • Leicester was ranked 3rd in the Hot 100 Retail locations (CACI)
  • Prime position fronting pedestrianised Gallowtree Gate opposite M&S and Boots, with rear access onto Market Place
  • Attractive unbroken retail parade providing 5 retail units over basement, ground and 2 upper floors
  • The property totals 37,620 sq ft
  • 82% of the total income secured against the strong covenants of WH Smith and O2
  • Freehold
  • WH Smith recently committed to a new 10 year lease
  • Long WAULT of approximately 7.58 years to expiry (6.55 years to break)
  • 32% of floor space vacant or let on a temporary basis providing excellent asset management opportunities
  • Majority of upper parts unoccupied whilst benefiting from shared access
  • Offers are sought in excess of £4,850,000 (Four Million, Eight Hundred and Fifty Thousand Pounds),after purchaser's costs reflecting:
    • 7.00% NIY
    • 8.22% EY
    • 8.81% RY


    Leicester is the second largest city in the East Midlands, located approximately 43 miles north east of Birmingham, 31 miles south of Nottingham and 100 miles north west of London.

    Leicester benefits from excellent communications being adjacent to the M1 motorway (Junctions 21 & 22), which in turn provides access to the M69, M6 and M42 motorways. The A6 runs though the city centre providing access to Loughborough immediately to the north and Market Harborough to the south. Leicester's ring road, the A563, connects to towns and cities to the east, such as Peterborough, Grantham, Melton Mowbray and Uppingham via the A607 and A47.

    The City's mainline railway station provides regular high speed train services to London St Pancras with a journey time of approximately 1 hour 10 minutes. There are also frequent rail services to Birmingham, Sheffield and Nottingham and the catchment population is supported by an extensive bus network and a park and ride service into Leicester city centre.

    East Midlands Airport lies approximately 20 miles to the north west of the City and provides frequent domestic and international flights.


    Over one third of the population living within a 20 minute drive of the property is categorised by CACI as being Comfortably Off, whilst the number of Secure Families in this catchment is 69% higher than the national average.

    The East Midlands currently contains approximately 10% of all households in England, and as a region the population is projected to grow faster than any other English region over the next 25 years (ONS).

    The city also forms part of an area which has been ranked the largest economic sub-region of the East Midlands, with Gross Value Added (GVA) totalling £15.3 billion for Leicester.


    The city is classified as a Regional Centre with a substantial primary catchment population of approximately 962,000 ranked 9th (PMA) and an estimated shopping population of 495,000 ranking 12th (PMA) in the UK.

    Leicester has over 2.5 million sq ft of retail accommodation ranking 7th (PMA) and a retail comparison spend of c. £871 million (CACI).

    Leicester's retail offer strengthened in 2008 by the opening of the 1.15m sq ft, Hammerson owned, Highcross Shopping Centre (former Shires), which is anchored by John Lewis. Highcross was re-opened following a £350m refurbishment, and provides a predominantly fashion-led tenant mix, supported by the city's main Cinema De Lux anchored leisure destination.

    The city's core shopping is focused on the pedestrianised section of Humberstone Gate and Gallowtree Gate, where the subject property is located, along with Highcross Centre and Haymarket Centre which is anchored by H&M, Sports Direct and Primark. Prime rents in Leicester reached £245 ZA when Highcross opened in 2008, whilst rents on Gallowtree Gate were in the order of £200 ZA in 2008. Today rents along Gallowtree are now considered to be rebased at £90-£100 ZA providing an excellent opportunity for growth.

    The historic 700 year old Leicester Market is situated on Market Place adjacent to the subject property. As part of a wider £9.2 million redevelopment of Leicester Market, in 2014 Leicester City Council unveiled a new market food hall which has regenerated the market area. Further information can be found at: www.leicestermarket.co.uk/market-development


    The property is situated in a prime position on the pedestrianised section of Gallowtree Gate, adjacent to Poundland and opposite Marks & Spencer and Boots. Other retailers in the immediate vicinity include HSBC, Dorothy Perkins, H Samuel, Pret a Manger and Card Factory.

    The subject units are situated in close proximity to the main entrance of the extended Highcross Shopping Centre at the northern end of Gallowtree Gate. The units are well placed to benefit from the significant footfall generated by all of the city's retail areas.

    The majority of the holding fronts on to the prime Gallowtree Gate area, although to the rear of the property WH Smith, Damson Trading Corp Ltd, O2, and vacant Unit 63 all have accessible frontages onto Market Place.


    The retail parade consists of 5 retail units comprising sales accommodation at ground floor with ancillary storage on first and second floors (the only exception is WH Smith which uses first floor and basement for sales and Post Office).

    The property is in part of late 19th century construction, with the rear of Unit 37 partially Grade II listed.

    The upper floors of the entire property have shared access and there is a notable amount of upper floor space that is unused and which could, subject to planning and negotiation, be used for alternative purposes.




    The asset comprises a multi-let retail block of five units which are leased to four tenants and one vacant unit as set out in the link below.

    Covenant Information

    Information on the estimated rental value and covenant can be found in the link below.


    There are a number of potential opportunities that could further enhance the value of the property in the short to medium term:
    • Let Unit 63 Market Place to a national A3 operator - ERV of £22,000 per annum
    • Convert units 33 & 37 temporary lettings into permanent deals to improve income profile (Current interest from Catering Operator - more information available on request)
    • Engage with O2 to negotiate removal of their break clause in 2019 to extend WAULT
    • Consider an alternative use strategy for the upper floors such as gym, possibly combining Unit 63 (floor plans available upon request)
    • Opportunity to generate significant rate savings when the revaluation of the rateable values is undertaken in 2017
    • Improve signage and prominence of the retail units


    The property has been elected for VAT and therefore it is intended that the sale will be treated as a Transfer of a Going Concern (TOGC).


    Certificates and Recommendation Reports are available upon request.


    Offers sought in excess of £4,850,000 (Four Million, Eight Hundred and Fifty Thousand Pounds) for the Freehold interest in the property subject to contract and exclusive of VAT. A purchase at this level will reflect the following yield profile, after purchaser's costs of 6.58%:

    • 7.00% NIY
    • 8.22% EY
    • 8.81% RY

    Download Brochure

    Google Maps


    Please select a contact *


    (* Required Field)