LandSec wins surprise victory on mezzanines

Ban on extra retail floorspace is overturned Land Securities has snatched a late victory in the battle between out-of-town retailers and the government over the use of mezzanine floors. The government will make it illegal for out-of-town retailers to build mezzanine levels without specific planning permission when it enforces its new Planning and Compulsory Purchase Act next year. However, on 8 October, LandSec had an enforcement notice ordering the removal of a (358m2) mezzanine floor at its Nene Valley Retail Park quashed because of a flaw in the original planning consent. Northampton borough council lost the three-year dispute at a planning inquiry because the consent did not contain any specific restriction on space being added to the store, which is let to furniture retailer Klausener. Jeremy Hinds, director and head of planning at FPDSavills, who acted for LandSec, said the case showed that landlords still have a limited window of opportunity to add mezzanines — even if tenants had been refused planning permission several times and lost appeals. The government is intent on discouraging such extensions because of the potential repercussions for town centres. Hinds said that, until the loophole is closed next year, planning permission is not required and retailers can build mezzanines “if conditions are not properly worded. That is the case even if a retailer had applied for planning permission and had it refused.” Hinds said government intervention could have been avoided if local authorities had been more consistent in imposing conditions on the addition of floorspace when consent was first granted. In a recent high court case, Peterborough city council was able to stop Next from adding a mezzanine level at its store in the Serpentine Green shopping centre. The local authority had stipulated in its development plan that the total retail space for the centre could not exceed 280,000 sq ft (26,000m2). References: EGi Legal News 23/10/04