Merrion Centre: Developer reveals major update on huge student accommodation scheme

It is intended that a new 35-storey tower block would be built on a site previously given planning permission for a new office block called 100MC. Plans for a 17-storey office building were originally given the green light in 2019 prior to the pandemic but it has never been built.

The plans also include turning the largely empty 13-storey Wade House, an 1960s office building which adjoins the centre, into accommodation.

In an update published alongside TCS’s results for the year ending June 30, the company said it hopes to begin work on the Wade House element of the scheme next year.

The update said: “Our proactive approach to re-imagining space is exemplified in the proposed Wade House and 100MC developments at the Merrion Centre, for which we submitted planning applications in December for the repurposing of these erstwhile office assets to create purpose-built student accommodation.

"We are progressing detailed design work on Wade House, with a view to being onsite next year, subject to funding.”

Chairman and Chief Executive Edward Ziff, said: “For the first time in the centre's 60-year history, TCS is looking to introduce residential accommodation, adding to the existing retail, leisure and office space.

"To address burgeoning demand for student accommodation, TCS's planning application is designed to deliver 1,110 student bedrooms.”

TCS said the move towards student accommodation at the Merrion Centre is part of a wider strategy to address changing retail and hospitality trends. The shopping centre has seen the closure of its Wilko store and the Pryzm nightclub in the past year.

The firm’s results statement said: “At the Merrion Centre, we are seeing greater demand from leisure operators than retailers, so some outlets have changed usage.

"In addition to the cross-sector impacts of inflation and interest rates, retailers have also had to contend with a material uptick in shoplifting, putting further pressure on operating costs. The demise of the nightclub operator as part of a wider trend seen in this sector provides a further opportunity to explore other options for a sizeable unit in the Merrion Centre.”

The firm also revealed it is in talks with an unnamed leisure operator about using the roof space at the Merrion Centre.

Plans for student accommodation at the site are part of a wider £400m development pipeline for the company.

That also includes proposals for two new office buildings, a 478 space car park and a hotel on a Leeds city centre riverside site.

In regard to the project, which is known as Whitehall Riverside, the update said: “We continue to make progress with professional teams and prospective tenants for all phases of the development.

"Ground enabling works have started and our readiness to commence construction will be dictated by the letting and investment market.”

Town Centre Securities recorded a statutory loss before tax of £8m, an improvement on the £29.5m recorded in the previous 12 months.

The figure was attributed to valuation reductions.

Edward Ziff said the company is in a good position.

"Our property rental business, car park and hotel operations continue to deliver resilient underlying revenues and earnings against challenging macro-economic conditions,” he said.

"These conditions have led to movements in the underlying yields and a further valuation reduction of our property portfolio, in particular with our office investments. Our attention is now focusing on investing in our development programme over the coming years. However we remain ever mindful that taking advantage of potentially accretive opportunities needs to be balanced against retaining robust finances."