Shopping centre owner SGS has recently announced impressive leasing activity and a successful performance for the year 2022. SGS, which owns popular malls including Lakeside in Essex, Atria Watford, Braehead in Glasgow, and Victoria Centre in Nottingham, reported that its occupancy and footfall numbers have surpassed those of its competitors.

In terms of leasing, SGS highlighted several key achievements from 2022. The company secured approximately 100 leases with well-known brands such as H&M, Next, Flannels, TK Maxx, Calvin Klein, Hugo Boss, Pandora, Zara, and other Inditex brands. Notably, M&S agreed to sign on for the former anchor units at Lakeside. Additionally, Atria Watford welcomed the largest UK store of Next.

Furthermore, Braehead will open an expanded Superdrug store this week, relocating and increasing its space to 11,000 square feet. Atria Watford also recently welcomed a new 2,271 square foot Moss store on its upper mall. Alongside these achievements, SGS stated that it currently has another 50 deals in advanced stages of discussion across its centres.

Occupancy levels are exceeding expectations, currently standing at 86%, and are predicted to increase to 88% once the new tenants have moved in. Additionally, footfall at SGS shopping centres has consistently been eight percentage points higher than Springboard’s benchmark for the entirety of 2022.

In addition to its leasing successes, SGS has launched a “Retailer Information Portal” to gather comprehensive data on tenant sales, profitability, and areas of overspending and underspending. This initiative will provide valuable insights to support decision-making and enhance tenant relationships.

SGS has also shared its strategic priorities for the next three years, which have been approved by the group’s investors. The plan includes an investment of over £130 million into the company’s shopping centres and key tenant relationships, contributing to the continued growth and success of SGS.

Steve Gray, Head of European Retail Asset Management at Global Mutual, expressed confidence in the company’s outlook and the resilience of its market-leading assets. He emphasized that while challenges remain, SGS is well-prepared for future growth and development. With a strong financial position and a platform for expansion, SGS is poised for further success in the dynamic retail industry.

Useful links:
SGS website
Global Mutual website