Council-Owned Retail Unit Proposed for Division

A property owned by Southampton City Council, presently occupied by a prominent hardware retailer, is under consideration for division into two separate units. This proposed split aims to create space for the existing store and also for an Aldi supermarket. The council acquired the unit at 271 Winchester Road in 2016 for £12.1 million, and Wickes currently holds a lease for the premises, which is scheduled to expire in September 2027. The authority’s proposal outlines that Aldi would occupy a section of the newly separated unit under a new 20-year lease. As part of this agreement, Aldi would finance the necessary construction work and subsequently pay a reduced rent for a period of 10 years, which is equivalent to a reimbursement of £1.7 million. Following this, Wickes would secure a new 15-year lease for the remaining portion of the unit. The authority states that this proposal presents it with “an opportunity to be able to improve the physical condition of [the] property [and] reconfigure the current layout, which is not compatible with market demands”. The council’s cabinet is scheduled to approve the project on Tuesday, before it proceeds to all councillors for consideration in February.