Wilko renews lease at newly-purchased shopping centre

Wilko has renewed its lease at Ortongate Shopping Centre, not long after the struggling shopping centre was snapped up by new developers.

The discount retailer’s lease was due to expire in September, but it has now renewed for five years at its 23,436 sq ft unit at the out-of-town Peterborough shopping centre.

The renewal will be seen as a victory by ALB Group, which acquired the “depressed” scheme earlier this year looking to reverse its fortunes. The developer said it is planning to spend £1m on improvements and looking to create a cheaper and more flexible renting structure for tenants.

Property agent Prime Retail completed the negotiations with Wilko on behalf of ALB.

Joe Bryan, senior surveyor at Prime Retail, which completed the negotiations with Wilko on behalf of ALB, said that the shopping centre seemed to be gaining a new lease of life since ALB’s takeover.

Other businesses in discussions with Prime Retail about taking space at Ortongate Shopping Centre include an Indian restaurant, a pets store, and an arts, crafts, and garden store.

ALB has managed to turn around some struggling areas such as Bridlesmith Gate in Nottingham, Albion Street in Derby and Sailmakers Shopping Centre in Ipswich. The group said it is keen to make tenancy agreements affordable and flexible enough to attract more entrepreneurs.

Arran Bailey, founder and managing director of ALB, said: “The fact that Wilko has reconsidered its position and signed a new five-year lease illustrates just how serious we are at breathing new life into our centres. We expect to be able to share many more positive stories from Ortongate in the very near future.”