Bluewater Shopping Mall - Commercial Due Diligence

 

About the brand

Bluewater is the UK’s prime shopping destination outside central London. It attracts 27 million visitors a year and its catchment is one of the most affluent in the country

The centre totals 1.8 million ft2 and is home to over 330 retailers and F&B operators

Landsec is the largest commercial property development and investment company in the UK

 Bluewater Shopping Mall

The Challenge/Task

As input to the commercial due diligence process for Landsec’s investment into the centre, Pragma were commissioned to determine the robustness of the current customer base at Bluewater Shopping Centre in light of potential future competitive developments and to highlight key areas of opportunity for the centre.

WHAT WE DID

The objectives of the proposed work programme focused on undertaking customer due diligence to provide Landsec with commercially-focussed insight concerning the current visit and spending behaviour of users of Bluewater and competitor developments in the catchment area. This was achieved by:

  • Undertaking a review of current, lapsed and non-user shopping patterns amongst Bluewater catchment residents
  • Providing an understanding of future population growth in the catchment and what this could mean for retail expenditure
  • Reviewing existing consumer research documentation provided to bid teams
  • Reviewing the potential impact of the internet and components such as click and collect

The Result

Pragma’s work helped Landsec in evaluating the commercial potential of Bluewater, with the purpose of establishing a true valuation of the asset in order to inform its investment bid. Landsec subsequently acquired a 30% stake in the centre for a cash consideration of £656 million from Lend Lease and have invested in further development of the asset.