23% added to Dunstable shopping centre value after sale says new owner

A five-year turnaround by property and asset management specialist Estama has helped increase the value of a Bedfordshire shopping centre by 23%, paving the way for its sale to a new owner.

The Quadrant Shopping Centre in Dunstable has been sold by Signal Capital to MGI following a programme of active management which saw occupancy climb from 70% to more than 95%, operating costs brought under control and significant investment in the property.

Estama was appointed in 2021 to manage the 135,733 sq ft, 52-unit centre, which serves a catchment of approximately 375,000 people and is home to retailers including Boots, Greggs, New Look and Coffee #1.

At the time, The Quadrant faced rising vacancies, increasing service charge pressures and an ageing building requiring substantial maintenance.

Working with Signal Capital, Estama introduced a business plan designed to stabilise income, attract new tenants, reduce costs and strengthen the centre's long-term investment prospects.

A targeted lettings programme secured occupiers including Coffee #1, Costa, Shoe Zone, Hays Travel and a Banking Hub, while Greggs expanded its existing premises.

The changes broadened the centre's retail mix, with greater emphasis on food, drink and everyday services. Estama also identified opportunities to generate value from redundant space.

Costs associated with a vacant former nightclub were reduced, while discussions with Central Bedfordshire Council helped progress early plans for a potential residential redevelopment of approximately 50 homes.

Elsewhere, change of use consent was secured for a former dental practice occupying the first and second floors.

Its subsequent sale to a residential developer removed longstanding business rates, insurance and service charge liabilities.

Behind the scenes, contracts were re-tendered and budgets tightened, keeping service charge costs below inflation while improving services.

A planned maintenance programme replaced the previous reactive approach, including the replacement of roofing across much of the centre, while statutory compliance was maintained at 100% throughout Estama's management.

Together, these measures increased net operating income, improved the centre's appeal to occupiers and investors and contributed to the 23% increase in value realised on sale.

Henry Gray, Director at Signal Capital, said: "When we appointed Estama, we wanted a partner who would manage The Quadrant as an investment, not just a building.

"The lettings strategy, cost control and investment planning have added to its value and put us in a strong position to sell. We're grateful to the whole team for their work."

Eoin Conway, Managing Director of Estama, said: "The Quadrant shows what can be achieved when property and asset management work hand in hand.

"When we took on the centre, there were some significant challenges, but also clear opportunities to improve its performance.

By attracting the right occupiers, managing costs carefully and investing where it made a difference, we've helped turn those opportunities into measurable results.

"Improving occupancy from 70% to over 95% while delivering a 23% increase in value is a strong result for our client, and demonstrates the impact of consistent, hands-on management.

"Just as importantly, we've helped strengthen The Quadrant's position at the heart of Dunstable, while identifying opportunities for its future. We wish MGI every success with the centre."

Knight Frank acted on behalf of Signal Capital in the sale.