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PA14/00532 | Commercial objectives and key drivers behind Cranford proposals for Hayle Shopping Park | Appendix 8.1 Part 4 Of 5

Via via an OCR - you are advised to check the original

Roger Birtles
Simply Planning
25 Manchester Square

                                                8 January 2014

Dear Roger

Hayle Shopping Park

Further to recent discussions, I understand that you would like me to explain, on behalf of
Cranford, the commercial objectives and key drivers behind our proposals for Hayle
Shopping Park and the associated Marsh Lane Nature Reserve. In addition, I set out the
aims and results of our consultation exercise and the level of investment and overall benefits
involved in the scheme.


Firstly, you will be aware of our history in Hayle. Namely, Cranford built the hugely
successful West Cornwall Shopping Park (WCSP) in 2006. We therefore understand the
local and regional retail market very well. WCSP has proved successful for a number of key
reasons. First the location of the development on the main A30, with its associated visibility
and ease of access, has been critical. Second, WCSP includes quality national retailers
(M&S, Boots, Next), which acts as a huge draw. Third, it incorporates ancillary food and
drink uses (the lVl&S café and Costa Coffee) which are extremely popular and complement
the retailing element. Finally, the West Cornwall region is underserved from a non-food
retail point of view. Retail Studies produced by Cornwall Council, and the demographic
information that retailers consider to be of critical importance, all point to leakage of retail
expenditure out of the catchment area to Truro and further afield, e.g. Plymouth. This is
highlighted by our anchor tenant Debenhams who do not have a full range store anywhere in
Cornwall (their Desire format store in Truro is very limited in range).

All of the above have helped to make WCSP a huge success. All of the above equally apply
to the current proposals for Hayle Shopping Park, hence the fantastic response we have had
from retailers wanting space on the scheme and from the local public who have backed our
proposals enthusiastically (circa 94 % support at the time of writing).

In addition to the above, Cranford have also completed several other retail schemes
recently, including Flowerdown Retail Park in Weston-super-Mare (B&Q, Comet, Aldi, Sports
Direct, Carpetright, Frankie & Benny's, Costa Coffee), Lichfield Retait Park (Wickes,
Carpetright, Pets At Home, Halfords), both of which are open for trading, Waitrose and
Garden and Leisure Group in Shrewsbury (due to start on site this month) and Waitrose in
Nottingham (planning application submitted this month).
The key personnel at Cranford have been involved in retail development for many years and
have completed millions of square feet of commercial development. Shopping schemes
delivered and completed by myself and Robert Buckey (Construction Director) include Brent
Cross, London, Castlepoint, Bournemouth, Beckton Shopping Park, London, Crossley Retail
Park, Kidderminster and St John’s Retail Park, Wolverhampton, amongst many others.

Our background and close reiationship with leading retailers enables us to design schemes
that will be supported by those retailers and which will succeed commercially.

The Retail Market and Recent Example Schemes

As mentioned by Debenhams in their letter to you of 7' January 2014, “the retail market is
challenging, constantly changing and the expectations of our customers is increasing.”
Other comments from commentators in the retail sector are of relevance such as “retailers
are becoming more demanding, they want more space in areas it knows are profitable and
where the demographics chime well with its offer” (Retail Week, October 2012) and “retailers
are focusing their store portfolios in retail properties which offer the best combination of
location, affordability, flexibility and environment...” (Building Magazine, July 2012).

As a result of the above, opportunities such as this are rare. However, it is clear that
retailers will continue to expand where all the criteria mentioned earlier (i.e. location,
demographics, ease of access and visibility) are in place. In addition, however, retailers look
for a scale of development which is suitable for their requirements. Again, Debenhams
provides a perfect example. They have made it clear that they would not operate in a solus
unit. They require co-location, whereby they have the confidence that the location as a
whole will have a sufficient cumulative attraction. That is a very clear objective of Hayle
Shopping Park.
This need for an appropriate scale and a cluster of complementary tenants is the way
forward for retailing and is fast becoming an expectation from customers. Recent examples
of this include:

o The Crown Estate’s Stadium Retail Park in Milton Keynes. This is a circa 250,000
sqft scheme opened in 2012 with major anchor stores including M&S and Primark. it
benefits from immediate adjacency to ASDA and Ikea.

o LxB’s Biggleswade Retail Park. This is circa 300,000 sqft of retail floorspace
anchored by Next, Matalan and M&S with likely other occupiers including Arcadia,
H&M and Boots.

0 LxB’s Banbury Gateway Shopping Park. This is a circa 275,000 sqft scheme
anchored by M&S and Next and is strategically situated next to the M40 motorway.

o Oakgate’s Monks Cross scheme in York. This is around 250,000 sqft of retail
floorspace and includes stores for John Lewis, M&S and Next. it sits next to Monks
Cross Retail Park Phase 1.

it is always the case in today’s retail market that anchor stores such as Debenhams or M&S
require, as part of their Lease Agreement, that they open alongside of other national
retailers. As such, we are progressing discussions with a multitude of tenants given the very
high demand for space at this location.

Another trend that can often be seen in the retail market is that many people genuinely view
shopping as a leisure activity and are keen to spend considerable dwell time in retail
locations. As such, the availability of coffee shops and restaurants is important and can now
be found at, or very near to, most retail destinations. Again, this scheme takes this trend into
account. in addition, considerable work has been done to incorporate the adjacent wetland
habitat into the design of the scheme, which will hopefully add to its attractiveness as a
destination. It is also our intention to put forward a financial contribution to help to ensure
that visitors to the Shopping Park are aware of the facilities on offer in Hayle town centre
(particularly the World Heritage Site, harbour and independent shops). This, again, helps
with the key aim of retaining people and expenditure in the local area.


Whilst the retail drivers are extremely important to the success of the scheme, we are aware
of the need to provide a balance with the needs of both statutory consultees and the local
community. We have therefore spent almost a year talking to focal stakeholders prior to the
submission of any planning application. Cranford takes this process very seriously.

The consultation exercise has included two presentations to Hayle Town Council,
presentations to the Chamber of Commerce and Hayle Area Forum, two presentations to
Cornwall’s Design Forum, three days of public exhibitions in both Hayle and Angarrack,
numerous one-to-one meetings with individuals as welt as meetings with the Highways
Agency, County Council, Environment Agency and Wildlife Trust. Around 4,000 flyers were
sent to local people.

The results of our consultation with local people were overwhelming. Around 1000 people
completed consultation forms, with 94% of them in support of the scheme.
in terms of our actual plans, we feel that consultation has resulted in an improved scheme
overall. For example, we have significantly revised the design of the buildings, incorporated
the wetland features of the adjacent Wildlife Site into the design itself, provided extra staff
car parking, improved pedestrian linkages, improved significantly the public realm at Marsh
Lane, incorporated improvements for Angarrack Village and agreed in principle a commuted
sum payment towards town centre management in Hayle all as a direct result of

We feel that the overall result is a scheme that balances the key retailer requirements set out
earlier with the needs of the local community and key stakeholders.

Investment Funding

Clearly the time and money we have spent in producing this detailed scheme underscores
our confidence in its deliverability. This alone is a not an inconsiderable investment on our
part, but the level of investment involved in the scheme should planning permission be
forthcoming is significant.

The construction works and tenant fit~outs would equate to around £26 million. in addition,
highways works, wetland enhancements, long-term management of the adjacent wetland
and other commuted sum payments (such as the afore-mentioned town centre
management) would take the total investment well beyond £30 million. This highlights the
confidence that retailers, and ourselves, have in Hayle as a location.

Further confidence should also be taken by the fact that the scheme is already forward-
funded. A letter is attached from Aberdeen Asset Managers which confirms this position.

Given the tong-standing difficulties associated with securing forward-funding following the
financial crisis, we believe that this represents a huge vindication of this scheme, its location
and tenant line-up. Furthermore, it offers additional evidence of the deliverability of this
project immediately, as opposed to a vague promise of what might be delivered at some
time in the future if and when funding can be achieved.

Overall Benefits

Taking all of the above into account, we now feet that we have produced a scheme that
creates a retail destination that tenants have confidence in. Furthermore, the scheme is
deliverable now. Finally, and in no small part thanks to the consultation we have
undertaken, we feel that there are very real and tangible benefits for Hayle and the local
area, including:

1. Jobs - our conservative estimate is that there will be at least 350 FTE operational
jobs created, with further jobs in construction and indirect jobs. Of the circa 1000
response forms received from our consultation exercise (Hayle only) around 350
people expressed an interest in a job. Obviously this could have a positive impact in
terms of general unemployment levels locally, but it will also improve the existing
situation in terms of seasonal unemployment, which is a key concern locally.

2. Retention of Expenditure - it is clear that many people in the area travel to Truro to
shop. This scheme will help to keep people in the area.

3. Wildlife Site - our consultation exercise showed considerable support for our
investment in tong-term management of the adjoining wetland habitat.

4. Quality Retailers - including our anchor store (Debenhams), with deals in progress
with many other national multiples.

5. Investment - see above for a breakdown.

6. Highways - much needed improvements to Loggans Moor roundabout,
improvements to Marsh Lane, at-grade A30 crossing and improved footpaths

7. Wetland Enhancements - the wetland habitat provides a unique opportunity to retain
water on the site (via ponds) thereby reducing flow to Hayle. in addition,
management will reduce the risk of culvert blockages and wilt allow for improvements
to the banks of the River Angarrack

8. Angarrack Village - consultation has resulted in a no-build buffer zone between the
site and the village to be secured via legal agreement, a new footpath to the village
along Grist Lane, parking for the Church and an agreement to set monies aside for
future traffic calming in the Village should it be required after the scheme opens.

9. Hayle Town Initiatives - we have agreed to provide a contribution towards initiatives
to help the town. This could include information boards, improved signage, town
centre management, etc. to be agreed with Cornwall Council.

In summary, Cranford are delighted with the way the scheme has evolved over the last 12
months and we are confident that this represents a great opportunity to deliver a quality
development scheme which responds to both a challenging and evolving retail market and
the needs of the local area.

I trust that this letter represents a helpful summary of the key drivers, commercial objectives
and ongoing evolution of our plans for Hayle Shopping Park, however should you require
anything further please do not hesitate to contact me.

Yours sincerely


For and on behalf of

Cranford (Hayle) LLP

Book page

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Amended plans PA18/04577 | Application for approval of reserved matters (access, appearance, landscaping, layout and scale) purs 1 week 3 days agoBook page
190301 | PA18/05585 and Listed Building Consent PA18/05586 Loggans Mill, Melyn Close, Loggans, Hayle (amended plans) 1 week 3 days agoBook page
181121 | Alleged Breach of Section 106 Section 106 Agreement dated 27 July 2016, clause 4.3 - To pay the Council’s Planning Admi 1 week 3 days agoBook page
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