By Nick Wilson

UK-based property company Liberty International's Capital Shopping Centres (CSC) subsidiary will own three of the largest city centre shopping schemes in the UK by 2010.

CSC's shopping centre component of the Manchester Arndale mixed-use scheme represents the largest city centre retail concentration in the UK.

The subsidiary is also busy with the redevelopment of shopping centres Eldon Square in Newcastle and St David's Centre in Cardiff.

By 2010 these redevelopments, which will be about the same size as Manchester Arndale, will be completed. CSC MD Kay Chaldecott said on Tuesday the mixed-use Manchester Arndale precinct consisted of a 140000m² shopping centre, a 12000m² office tower on the roof of the shopping centre and a 20000m² retail component called New Cathedral Street. CSC acquired a 45% interest in the mixed-use scheme in March 2005.

In March 1996, an Irish Republican Army bomb blast outside Manchester Arndale destroyed a major part of the city centre.

Reconstruction eventually led to the regeneration of the whole city centre, including the redevelopment of part of Manchester Arndale.

Chaldecott said the shopping centre component of Manchester Arndale now had a 93% occupancy rate by rental income.

This followed a 55000m² extension which was completed in phases between October 2005 and September last year. Filling the remaining vacant space was a work in progress, expected to be completed in nine to 12 months.

"We have a strategy to provide flagship best concept stores at the centre," Chaldecott said.

For example, fashion retailer Topshop has taken its largest store outside of London in the Manchester Arndale shopping centre. Other new entrants to the UK market that have taken space include US computer giant Apple and Scandinavian fashion retailer Blend.

Chaldecott said CSC was "keen" to find the right tenants for the remaining space to complement the city centre retail mix.

"One of the big things we have encouraged on the south side of the scheme is for retailers to refit their units to ensure a balance of quality throughout the whole Manchester Arndale retail and office scheme," she said.

Business Day