Leisure and Retail Complex help!!!!

[Leroy-Allen]

Hi all!

I am hoping to set up a new business venture within the retail industry, since I have never worked in or anywhere near to retail I am looking for a little direction. Let me briefly explain my idea;

The venture is going to be an indoor retail and leisure complex that will host a range of product and service based businesses. Obviously I will contact all of the businesses I wish to host in the building and offer them an exclusive opportunity to be a part of the complex and set up a store within the complex. Here is the bits Im stuck on.. I wish to lease the building I'm going to use for the complex, is this possible or would I have to own it since I want to 'sub-lease' it so to speak to other businesses, will I be able to lease the space inside the building even though I am also leasing the overall building? If it would be possible, how would this work and what would the terms of the the lease I give to the companies in the complex have to include? I know for a building of this type the lease would have to be paid usually 6 or 12 months upfront in advance. Is there a way I could contact the businesses I wish to have inside the complex before hand and settle an agreement before I own the lease to the building or would I have to have the building already? I was thinking if there was a way I could secure the building but not pay for the lease to own it/rent it then I could speak to the participating businesses and get them to agree to be in the complex, then take their 6 months advance rent and that way I can pay for the building without needing to gather any capital for the leasing and can keep all my gathered capital for refurbishing the inside of the building and decorating. Would this work? is there anyway I could do this or something like this?

Any sort of insight or mild direction to any of the above would be greatly appreciated!

Thank you in advance!

Leroy

 

[kulture]

This sounds like you want to set up a shopping centre. Most developers who do this start with several million pounds in the bank and a good idea on what they are doing.

They start with getting outline planning permission from the local council to allow such a use of the buildings/land. Then they find an anchor store or two to agree to occupy some of the building. Typically such a store is a huge high street name and is given a long rent free period (years). No other retailer would begin to consider renting space before the building was ready and without a decent anchor. Most retailers would want a element of rent free period.

Unless you have some very special idea, and a very special location, then I think you are wasting your time.

 

[Leroy-Allen]

Thanks for the reply Kulture, useful info on anchor stores! I didn't have a clue that that was the case, although Im sure only stores with a huge high street name as you said will ask of this. My venture idea is far from any shopping centre and the services and retail businesses (mostly service based businesses) I wish to host are not conventional high street stores, as you can imagine I am quite hesitant to post my ideas in full on the internet, although they are bespoke to say the very least. Ive already found a number of suitable buildings and spoke to the council for a change of license on the properties and they have all said a change of license wouldn't be an issue as they are all industrial buildings and would need a change of operating licence, since a retail building would need to be purpose built because of the size it would need to be

 

[kulture]

Look at this http://raveningham.com/?page_id=21 and http://raveningham.com/?page_id=746
It is not impossible to do, but unlikely with no money. I would think that no retailer or service company would pay in advance for any property before they saw it working.

Whilst all things are possible in terms of leases and sub lets etc, you need a good (expensive) solicitor to draw them up and negotiate.

 

[Leroy-Allen]

I see what your saying and as sad as it makes me, I agree, I certainly wouldn't invest my time or money without the security of knowing what I was stepping into. I was just thinking of a little bit of lean startup time so I didn't have to set up the building and have it ready to open but be in the process of waiting for all potential partners to agree to the terms and have to wait again for them to set up their end when I could be trading

 

[GarethShaw]

I have a friend who is trying to create a leisure venue which has a mix of restaurants, bars, food and mkt stalls at an old venue and the costs soon mount up. It's a million just to get the venue ready before any of the shops can do any form of fit out. If you are serious about this then get letters of interest from businesses who would rent from you, get the landlord on side, a great solicitor and architect. You could easily spend 20k on viability without getting far.

You other bet is to sell the idea to those who can do this and agree a finders fee. Be very careful if you do this and make sure the legal agreement is watertight before revealing location etc..

 

[harper101]

I have a friend who is trying to create a leisure venue which has a mix of restaurants, bars, food and mkt stalls at an old venue and the costs soon mount up. It's a million just to get the venue ready before any of the shops can do any form of fit out. If you are serious about this then get letters of interest from businesses who would rent from you, get the landlord on side, a great solicitor and architect. You could easily spend 20k on viability without getting far.

You other bet is to sell the idea to those who can do this and agree a finders fee. Be very careful if you do this and make sure the legal agreement is watertight before revealing location etc..

Right, agree with what you said!