Property firm eyes landmark shops to strengthen presence

The shopping centre is on the market for £125m and owner Bank of Ireland Private Banking was earlier in the year thought to be in discussion with German fund manager Deka to take it over. However, no announcement was made.

Speculation is now mounting that Hammerson is under offer to buy the so-called “Knightsbridge of the North”. But both parties – Hammerson and Bank of Ireland – declined to comment when contacted by the Yorkshire Post yesterday.

The Victoria Quarter, which is a grade Two listed building, houses more than 70 fashion and lifestyle brands, including the flagship Harvey Nichols store.

Meanwhile, Hammerson confirmed in June the sale of the bulk of its London office portfolio to Brookfield Office Properties for £518m. The move is in line with Hammerson’s strategy of becoming a specialist retail property company.

Hammerson is also the developer behind the Eastgate retail development in Leeds. It recently announced that it had agreed to a 260,000 sq ft flagship John Lewis store, which will form part of Harewood, the first phase of Eastgate Quarters. The project will see two new retail streets created as well as a direct route from the Victoria Quarter to the new development.

This phase will include “up to 30 extra retail units for high end and aspirational brands, six restaurants, additional leisure space and a 600 space multi-story car park”. Subject to planning approval, work will start in summer 2014, with the launch of Harewood in autumn 2016.

The Victoria Quarter was built in the 1980s. Bank of Ireland bought the centre from Highstone Estates, owned by entrepreneur Paul Sykes, for £126m in 2006.