New management for former Shrewsbury Toys R Us store
A property company has been appointed to manage empty Toys R Us stores across the country, including the former Shrewsbury branch.
FI Real Estate Management will be responsible for ensuring the security of the large building in Meole Brace which has now closed after Toys R Us went into administration in February.
Finding a new tenant for the prominent site at the entrance to the town has not yet started but commercial estate agents Cushman and Wakefield have been appointed alongside Morgan Williams to market 31 former Toys R Us stores across the country.
The 31 stores made up the freehold and long leasehold portfolio of the former Toys R Us estate.
The newly-named Duke portfolio, which spans the UK and is 1,872,409 sq ft in total, was put into special servicing with integrated loan servicing and advisory firm, Solutus, following Toys R Us entering administration.
The portfolio is owned by Toys R Us Properties (UK) Ltd which currently has secured debt of £263 million, however the portfolio specialist has recognised its potential appeal to successful out-of-town retail operators and as prime development locations.
Tim Knowles, managing director of FI Real Estate Management, said: "We have welcomed the opportunity and challenge of fully managing this portfolio.
Prime sites
"We have agreed a business plan that allows us to preserve and unlock value without the need to make pressured decisions.
"There is still life in the UK retail market where there are many high-quality retailers wanting to expand their portfolio into these prime sites."
Toys R Us appointed Moorfields to handle the administration when the company was unable to pay a £15 million tax bill.
After failing to find a buyer for the business, Moorfields said in March that it would be necessary to close all of Toys R Us's 106 stores, and immediately made 67 staff at the chain's Maidenhead head office redundant.
Toys R Us was one of the most high-profile retail casualties in the first quarter of the year.
Electronics retailer Maplin went into administration on the same day, putting a further 2,500 retail jobs in doubt.
Meanwhile, New Look and Carpetright have both announced plans to shut stores as part of restructuring plans.
High street retailers such as Toys R Us have been battling against a combination of rising costs and a fall in consumer confidence.
Many retailers have also struggled to keep up with the rise of online retailing and a change in shopping habits.
