Martin Ellis is on a mission. His employer, Capital Shopping Centres, has just multiplied its budget by nine and he鈥檚 looking for suppliers to spend it on
Are you telling me you鈥檝e never been to Lakeside?鈥 Martin Ellis is incredulous. 鈥淏ut it鈥檚 only an hour away from where you live. You don鈥檛 even need a car, you can get there by train!鈥 He gestures to an aerial photograph of the development hanging on his office wall. 鈥淚t ticks all the boxes. It has all the shops you want, it鈥檚 pleasant to walk through 鈥 and it has fantastic toilets.鈥
You鈥檒l rarely meet a man as enthusiastic about shopping as Ellis, and as construction director of developer Capital Shopping Centres, he鈥檚 planning quite a spree 鈥 拢1.2bn over the next five years. In a former life, he was the for QS Gardiner & Theobald at Lakeside but he took up the newly created post at CSC a year ago to manage a staggering 800% increase in its spending, as several long planned
developments came on line. Last year, the company put 拢24m of work the construction industry鈥檚 way; this year it will commission 拢208m. As you might expect, Ellis is looking for contractors and consultants to help him spend it.
CSC is one of a handful of developers that focus exclusively on shopping centres, and although it will tag on residential and office units at the planners鈥 behest, it is this wholehearted commitment to retail that has won it admirers. 鈥淔rom top down they are retail through and through,鈥 says John Strachan, head of retail at agent Cushman & Wakefield. 鈥淭hey are highly professional, experienced and knowledgeable in their field.鈥
Neither is it scared by headlines proclaiming the sector鈥檚 decline. Ellis explains: 鈥淲e are a property company, not a retailer. Plus, we go for quality shopping centres in prime locations, which fare better in tough times.鈥
CSC has 10 big projects under way 鈥 naturally all are shopping centres. The biggest is the 拢535m extension of the St David鈥檚 Centre, Cardiff, a joint venture with Land Securities that is due for completion in 2009. This pace shows no signs of slowing under Kay Chaldecott, CSC鈥檚 new managing director. In her first year she has overseen the acquisition of three malls: the Arndale Centre in Manchester, Cribbs Causeway in Bristol, and Chapelfield in Norwich. Ellis says further acquisitions, both existing and under development, are planned.
You don鈥檛 have to have experience of retail to work for Ellis, but an understanding of the sector鈥檚 requirements definitely helps. He recently appointed Allies and Morrison, an architect with little retail experience, because it understood the design needs of a shopping centre. 鈥淲e are not here to win awards. We want good design but it has to be commercially viable. If the architect is precious about their designs it makes our life much harder. Allies and Morrison clearly indicated that they do good design but they aren鈥檛 precious about it.鈥
Contractors and consultants, too, have to be prepared to swallow their pride and muck in where need be. It鈥檚 not so much about satisfying CSC as its own clients, the retailers. 鈥淲hat drives us is our tenants. We have to deliver to their timescales,鈥 says Ellis.
CSC starts work on a mall before it knows which shops will want to move in, so designs often change. And retail tenants can be tricky customers. John Lewis, for example, has signed up to be the anchor tenant of the Cardiff scheme, occupying 260,000 ft2 of floor space. 鈥淭hey have the clout to be able to demand all sorts of things. They want a lot of control and to be able to direct the way that we do things,鈥 says Ellis.
It is supposed to be up to tenants to handle the fit-out of their own stores, but Ellis says the big names usually ask CSC to provide certain elements normally classed as fit-out, none of which will have been in the contract. These include screeding and the installation of escalators, lifts or generators. He adds that such tenants tend to have armies of in-house experts and third-party consultants to keep an eye on construction. 鈥淲e demand that the contractor has the systems in place to deal with these situations. It could mean that they have to bring in a separate construction team to deal with a particular issue,鈥 he says.
This is what happened to the Sir Robert McAlpine team building the MetroCentre extension in Gateshead. CSC pulled off something of a coup by signing up womenswear retailer Zara, which then demanded a lift pit and shaft, escalator pits, a mezzanine floor and a beefed-up power supply 鈥 all to be completed in just eight weeks. 鈥淶ara is an important tenant, so we were quite demanding on McAlpine, but they did it,鈥 says Ellis.
Ellis is in the process of reviewing CSC鈥檚 line-up of consultants, not only to cope with the increase in spending but also because he believes 鈥渋t鈥檚 healthy to widen the net鈥. It normally uses Gardiner & Theobald and Cyril Sweett for large projects, and has begun working with Tweeds. Ellis recently invited 14 QS practices to pitch for inclusion on CSC鈥檚 preferred list of firms, and is now in the midst of the selection process. CSC plans to repeat the process with , structural engineers, M&E contractors and shopfit control consultants. On the contracting front, it is also talking to Laing O鈥橰ourke and InteriorExterior.
Be careful what you say in your pitch, though. From now on, Ellis says he鈥檚 recording everything firms say in their initial presentations and setting it all down in stone in the contract. Having been on the other side of the table at G&T, he鈥檚 not an easy man to impress. 鈥淚 do ask people searching questions,鈥 he says. 鈥淚鈥檝e been a consultant project manager and I know they make wild promises about the amount of time they鈥檒l spend on a job.鈥
What Ellis wants
What do you want from your shopping centres?
We want value. We want to spend money where it can be seen and where it鈥檚 necessary. We don鈥檛 always need to spend loads of money on the back areas. Alright, people may not say 鈥渋sn鈥檛 that roof light fantastic鈥 but they walk through and feel that they鈥檙e in a nice space.
What should construction firms do to impress you?
We don鈥檛 demand a high level of retail experience but we need people who understand what drives our business 鈥 and that is our tenants. My responsibility is to build things on time and on budget but we also take a long-term view because we hold on to our buildings. If a few years on the chillers turn out to be rubbish and the floors are crumbling I鈥檒l have failed.
What are you like to work for?
We demand commitment. We have got to get out there and talk to people about what they want 鈥 from tenants to local residents and other stakeholders, like CABE. We expect project teams to commit to this. A lot of people won鈥檛 recognise separate architects and contractors, they鈥檒l just see the developer鈥檚 team, so you have to be prepared to represent us. Bob Allies of Allies and Morrison does this well. He doesn鈥檛 delegate meetings with stakeholders to anyone.
CSC at a glance
Programme
CSC will hand out contracts worth more than 拢100m a year for the next five years. The main projects are as follows 鈥
- St David鈥檚 Centre, Cardiff: 拢535m extension, joint venture with Land Securities
- Westgate Centre, Oxford: 拢300m upgrade, joint venture with Coal Pension Fund
- Eldon Square, Newcastle: 拢170m three-phase development
- Chapelfield, Norwich: fit-out of 117 flats
- Lakeside, Essex: refurbishment of Pavilion building to provide nine restaurants
- MetroCentre, Gateshead: continuing facelift
- The Glades, Bromley, Kent: two projects upgrading lifts and washrooms and adding 38,000 ft2 of retail space
- Cribbs Causeway, Bristol: 拢3m refurbishment, joint venture with Prudential
- Harlequin, Watford: CSC is negotiating with Watford council to remodel Charter Place adjacent to the Harlequin
- Arndale, Manchester: Phase three of 500,000 ft2 northern extension due to open on 7 September, joint venture with Prudential.
Who CSC works with
Contractors: Bovis Lend Lease, Sir Robert McAlpine, Ardmore Group, Galliford Try, FB Ellmer
QSs: Gardiner & Theobald, Cyril Sweett
Project managers: Mace, G&T Management Services, Tweeds
Architects: 好色先生TV Design Partnership, Allies and Morrison, Haskoll, Benoy, Leslie Jones.
Procurement
Two-stage design-and-build contracts for all big projects. Ellis says: 鈥淲e like to get the contractor involved early, especially when the project involves refurbishment or an extension, because there will be a lot of investigation work. Sir Robert McAlpine was at the MetroCentre nine months before they put a spade in the ground. Design and build is also there for risk transference.鈥
People
CSC鈥檚 full construction team is:
- Martin Ellis, construction director,
- Gavin Mitchell, group project manager,
- Bob Danks, group project manager,
- Charles Forrester, senior project manager.
鈥淕avin and Charles are both ex-G&T, and Bob is a retail veteran. We like having a close-knit team. The consultants do the day-to-day management 鈥 and we run them.鈥
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