Star date: 14th August 2012

LOWRY OUTLET MALL SOLD AS SALFORD COUNCIL RETAINS LAND…but is it the end of free parking? 

The Lowry Outlet Mall, which stands on land owned by Salford Council, has been sold by the Emerson Group to Peel Holdings. The future of the Mall, estimated to bring in around £1million in ground rents to the Council, is uncertain, as Peel plans to massively extend its MediaCityUK operation, while retail space on the Quays is set to increase fivefold.

Full story here…

The Lowry Outlet Mall and its car park has been sold for a reported £70million to Peel Holdings, the same amount that it cost to build the place over ten years ago.

The Mall, a partnership between Orbit Developments (part of the Emerson Group) and Salford City Council, is estimated to bring in around £1million a year in ground rent which is used to subsidise The Lowry arts centre, as former Salford Council Leader John Merry told the Salford Star in 2006…

"We make over the rent from the shopping mall, which we own" he said [in not very good English] "The ground rent we get from that we pass over to the Lowry…"

Today, a Salford Council spokesperson told the Star that the land itself hasn't been sold to Peel and that the Council still owns the freehold to the site. The Council didn't answer our question on whether there was to be a partnership agreement between itself and Peel for any future development, only stating that "We would need to be consulted on any redevelopment plans for the site but we haven't received any plans as yet."

Quite where the Outlet Mall fits into Peel's strategy for Salford Quays and MediaCityUK is unclear, except maybe to wipe out all competition, as the developer has its own plans for a massive commercial and retail expansion of Media City.

Peel also owns a very expensive car park behind its studios, in competition with the current Mall car park which allows free parking for anyone using its shops, bars and cinema. Expect this to end.

While, according to a Salford Council report, only 2.1% of Salford residents used the Mall, a press release issued by Peel Holdings yesterday stated that it had "just over 4.7 million visitors in 2011" and that "sales were up 11% year-on-year while footfall has increased by 14%".

The Salford Star tried to contact the Emerson Group for a comment on why, in the face of such `great' figures, it had sold the Mall so cheaply (£70m to build and sold for £70m) to its competitor but were told that at the moment they "had nothing to say".

A statement put out yesterday by Peter Jones, Chairman of The Emerson Group, thanked "loyal customers and tenants", adding "We wish the Peel Group every success with the Mall…who, of course, have a great deal of flair and energy which has transformed the Quays."

In the same press release, John Whittaker, Chairman of the Peel Group, said: "We are delighted to have secured a deal with Emerson for the purchase of The Lowry Outlet Mall. This is an important strategic acquisition for us and continues to extend the MediaCityUK community across the Quays from the BBC and ITV as well as the new tenants moving into MediaCityUK. The Mall complements MediaCityUK perfectly and will give us the opportunity to look at the most effective ways of increasing visitor numbers and enhancing the experience for customers."

Salford Council is proposing to allow a fivefold increase in retail areas on the Quays, from 2000sqm to 10,000sqm, while affording the Quays new `town centre' status, exempting it from many planning rules.

Meanwhile, Peel Holdings is set to grab another piece of lucrative Salford, as part of its journey to exploit every square inch of financially viable land in the city. Eliminating all opposition as it goes…