Capital Shopping Centres

Procurement policy
The form of contract used for a Capital Shopping Centre (CSC) project varies depending on the scheme. The company generally uses competitive tender contracts, although it has used design-and-build and fixed price contracts. On a few occasions, including its Braehead project in Glasgow (see below), it has used strategic partnering agreements.

Current and future projects
CSC owns 10 major shopping centres, six of which are among the UK's top 15 shopping centres. It has assets worth £3.2bn totalling 800,000 m², and its centres attract 18 million customers a year. Although investment fell in the first half of 2002 (to a reported £17m), CSC's development programme has strengthened, and the outlook is one of growth. In its 2002 interim report, CSC noted that it had recently committed to an involvement in Lend Lease's Chapelfield shopping centre development in Norwich. CSC is committing close to £275m. Construction has started and should be completed by 2005. Meanwhile, outline planning permission has been gained for the second phase of a key 145-acre mixed-use development in Braehead, Glasgow.

Since June 2002 the company has also commenced construction on the £85m Gateshead expansion. This will be anchored by a Debenhams department store, and will also provide 28 other retail outlets, all due for completion in 2004. According to the company, it has a committed development programme of close to £500m. The development pipeline includes a large shopping centre at Cardiff where, with Land Securities, CSW is proposing to undertake a city-centre redevelopment to include 17,500 m² of retail space.

Essential information
Capital Shopping Centres is the major trading company of its parent, Liberty International. Liberty International recently announced that it had raised almost £160m through the placement of 28.4 million new shares. The funds will enable CSC to embark upon an ambitious redevelopment and expansion programme across the UK. The company will use the funds to pay for its increased ownership of the Victoria Centre in Nottingham following a payment of £240m for a further interest in the centre. The additional funds will also go towards the group's centres under development at Norwich and Gateshead. Overall, CSC looks set to be one of the more active property companies over the next few years.