Debenhams secured as anchor for £150m redevelopment of Lancaster city centre

In two significant steps following in close succession, Centros has signed a Development Agreement with Lancaster City Council and exchanged a lease agreement with Debenhams to secure the department store as the main retail anchor of its mixed-use Canal Corridor North development in Lancaster city centre.

Debenhams has taken a 105,000 sq ft (9,750 sq m) unit on a 25-year lease within the £150 million, 10-acre city centre extension. Centros’s shareholders, Delancey and the Miller Group, are financing the development.

The new Debenhams will be spread over three levels and will be one of the largest Debenhams stores in the northwest – featuring a unique mix of own brands including the successful Designers at Debenhams, and International brands, all within a state of the art environment.

Centros’s mixed-use scheme for the Canal Corridor North site will extend the city centre’s prime shopping area and heighten the amenity provided by the Lancaster Canal. As well as providing up to 350,000 sq ft of new shopping space, the fully pedestrianised development will enhance the site’s existing cultural facilities (including two theatres) and assist them with a complementary range of adjacent cafés and restaurants. There will also be parking for 800 cars, over 100 townhouses and apartments, offices, a new hotel and small workshops and premises for local businesses.

David Lewis, Associate Director of Centros, commented: “The signing of the Development Agreement and the securing of Debenhams signifies a major milestone allowing us to move forward to the next stage of delivering this exciting scheme, with the planning application to be made in the Spring of next year.

“We believe Lancaster is the largest city in the UK that does not currently have a department store. Debenhams will be the catalyst to transform the city centre’s offer for both shoppers and other retailers and will also provide a significant boost to the local economy.”

Robert Hadfield, Acquisitions Manager at Debenhams, said: “We are very excited to be bringing Debenhams to the people of Lancaster and we look forward to continue to working with Centros to provide a stunning shopping environment.”

Centros is working towards submitting a detailed planning application in spring 2007, with completion of the development currently targeted for 2011.

13th November 2006