Retail Property - Sainsbury's eyes up Chichester as ripe for first shopping centre

Planning permission is being sought to build a shopping centre in Chichester, West Sussex, one of the few remaining sizeable UK locations still without this form of retailing.

J Sainsbury Developments has quietly lodged a planning application for a 215,000 sq ft (20,000 sq m) scheme on what is known as the Shippams site, next to Chichester's retail centre. Chichester District Council identified the former industrial site on East Street as suitable for large-scale retail development in 1999.

Chichester is reputed to boast the highest rents of any UK location without a shopping centre, with Zone As on East Street reaching£130 per sq ft (£1,400 per sq m).

The Shippams scheme will comprise a department store and the large floorplate retail units that are in heavy demand by retailers such as H&M, Mango, Zara and Next. Up to 156,080 sq ft (14,500 sq m) of mainly retail is planned. The scheme will also contain 56 town houses and apartments, totalling 59,200 sq ft (5,500 sq m). Debenhams is thought to be interested in anchoring the scheme. Shop units will have a 25 ft (7.5m) frontage and provision for mezzanine storage. Smaller units are planned for local independent traders.

Vail Williams and Strutt & Parker, which has advised J Sainsbury Developments on development aspects of the Shippams scheme, are the joint letting agents.

- Plans to sell J Sainsbury Developments are also progressing. As Retail Week went to press, a consortium of Catalyst, Schroder Investment Management and Deutsche Bank was close to signing a deal to buy the£180 million property development business, put up for sale by J Sainsbury earlier this year.