Summary of the allocation

process for retail units at

Elephant One, Castle Square
and Perronet House

April 2019
 1. Introduction
th
At the Elephant and Castle traders’ meeting on 26
March, a number of questions were asked about the
allocation criteria, the process followed and outcomes for
the relocation space at Castle Square, Elephant One and
Perronet House. Uncertainty over the process and a lack
of reliable information has clearly caused a lot of
frustration and allowed some misunderstandings to grow.
This note provides answers to the questions raised at the
meeting, and aims to reassure business owners that the
process was transparent and properly followed.
This note covers:
• The sites
• Overview of process
• How the criteria were assessed
• Decision making
• Validation
• Summary of results
• Outcomes of the process
• Ongoing support
• Relocation Fund
2. The sites
3. Overview of process
The units were open to businesses that are eligible for
relocation support under the S106 agreement for the
Shopping Centre.
The criteria for allocating these units were discussed and
approved at the January 2019 Traders Panel. They were
originally based on feedback received from traders during
Tree Shepherd focus groups in July 2018. These criteria
were circulated to all traders and a further note explaining
the process was circulated after they were discussed
again at the February Trader Panel meeting.
The assessment panel followed this process when
making decisions.
The panel’s aim was to use the criteria to find suitable
space for as many businesses as practically possible.
The panel responded flexibly to the information provided
in applications, the limited available space and all traders’
preferred locations.
The panel received 64 applications from traders in the
red-line of the shopping centre site, including the moat
market, kiosks and arches. It worked to the following
time-table:

In this process traders could apply to three locations. Activity Dates

These have been provided either by Delancey or
Southwark Council to provide extra space in the local Business preparation and January - February
area for independent traders from the shopping centre planning 2019
site. These locations offer space on top of what is Application process closes 18 February 2019
available on local high streets, they do not have enough
space on their own for every trader to move to them. Applications processed and sent 26 February
to property owners
Retail units at the base of Perronet House. These are
Property owners meet to confirm 1, 5, 12 March
being built by Southwark Council to create additional
allocations
affordable space and help maintain a local retail offer
after the shopping centre closes. The units are sized Validation of results 13, 14 March
approximately between 100sqft and 360sqft with one
Traders informed of successful 15 March
larger café unit around 1300sqft.
application
Temporary retail units at Castle Square. These are being March Trader Panel 19 March
built by Delancey. This was required by the council to
provide additional, temporary space for traders during the Initial outcomes meeting 26 March
redevelopment of the town centre. Each individual unit
‘module’ measures around 140sqft but can be combined Traders had the option to meet with Tree Shepherd’s
in different sizes to fit businesses’ needs. Business advisors in the Business preparation and
planning period to discuss writing their application.
Retail units at Elephant One. These were provided under
the planning permission for this development and have Stage 1
been held in reserve by Delancey for shopping centre
traders. They are mostly sized between 150sqft and The criteria listed below were used to place all applicants
300sqft with one unit at 635sqft. into Pot 1 or Pot 2.

The layout at all sites can be reconfigured to some
extent to allow for different combinations of units in
various sizes to accommodate businesses’ needs.
A Pot 1 applicant had:
• A good track record of making rent and service
charge payments
• A business plan that shows the business will be
competitive and viable in the new location and

• southwark.gov.uk • Page 01
 employ staff (but if a sole trader this was not
counted against the applicant)
• Applied for a space of comparable size to their
current unit; and
• Be a type of business that will function well and
be suitable for that location, taking into account
tenant mix.
A Pot 2 applicant may have:
• Missed rent or service charge payments in the
past few years
• An under-developed or untested business plan
• Applied for a space much larger than their
current unit; or
• Be a type of business that is less suitable for
their choices of location, taking into account
tenant mix.
Businesses in Pot 1 were considered first.
Being placed in Pot 2 did not mean a trader was
disqualified or classed as ineligible. They were
considered for space after the Pot 1 applications.
Stage 2
All Pot 1 applicants were considered first. The panel tried
to fit them all into their first choice locations.
Where there was more than one business competing for
a first choice unit, the panel re-assessed each applicant
against the criteria. The business that best met the
criteria secured the unit.
Only in the event of a tie break was the length of tenure
at the shopping centre used to decide the successful
applicant.
The panel then attempted to allocate all Pot 1 businesses
that did not secure their first choice to a second or third
choice unit. Where more than one business was in
competition, the same process as above was used.
Stage 3
Pot 2 applicants were then considered, following the
same process as for Pot 1.
4. How the criteria were assessed
Finance records and payment history
Any known rent or service charge arrears were taken into
account, particularly where there was a pattern of late
payment or substantial arrears built up over time.
Business plan
The quality of the business plan was considered to
assess the likely chance of success in the new location,
taking into account changes to costs, footfall and
operating model. Was it consistent with previous
business performance? Were expansion plans or
substantial change to the business model in the new
location convincing? Was all the necessary information
provided?
Size of location
There were very few larger units on offer through this
process. Some businesses that currently operate from
larger units applied for similar spaces. In this case, where
feasible the larger available units were targeted at these
businesses.
Businesses that do not currently operate from a unit were
typically considered after those that operate from units.
Tenant mix and profile
The tenant mix for each location was carefully
considered. The aim was to create a complementary and
successful community of businesses at each site with a
good chance of bringing footfall to benefit each other.
The key considerations were the mix of products and
services offered, and the location of ‘destination’
businesses and those that rely more on passing trade.
Length of tenure
The length of time that a business has been trading from
the site was considered after the four other criteria. It was
used only to make a final decision on a very small
number of occasions when two similar businesses were
equally suitable in all other aspects.
5. Decision making
Southwark Council took the decisions relating to Perronet
House. The council was advised in the decisions by
Meanwhile Space CIC, who will operate the arcade.
Delancey took the decisions relating to Castle Square
and Elephant One.
Southwark Council oversaw the process and was
involved in the assessment of all applications to make
sure that Delancey’s decisions for Castle Square and
Elephant One were taken in line with the criteria and
obligations.
6. Validation
The application process was validated by the Head of
Property at Southwark Council, who provided a
professional assessment of the process, having had no
previous involvement in the Elephant and Castle planning
or business relocation process. After this review the
outcomes of the selection were found to be logical,
consistent and have been arrived at through a robust and
transparent process.
• southwark.gov.uk • Page 02
 7. Summary of results
There were 36 successful applications, and
unsuccessful applications.
Successful Unsuccessful
Units 20 7 Tree Shepherd’s support and the relocation database.
Kiosks 2 2
Market 9 18
Barrows 5 1
Of the unsuccessful businesses, a number are held in
reserve in case offers are not taken up.
8. Outcomes of the process
The outcomes of this process have raised some
questions. These are addressed in more detail below.
Businesses offered smaller or fewer units than they
currently occupy
There were very few large units on offer at these
locations. Some businesses based in larger units made
applications for similar amounts of space that they
currently occupy. Where possible, and they met the
criteria, these businesses have been offered what is
available but this is unavoidably less than their current
unit size.
Other businesses or business owners currently operate
from more than one location in the shopping centre site
and applied for an equivalent number of separate units.
In these cases, because of the limited space, the panel
prioritised making at least one offer per business owner.
Longer-standing traders being unsuccessful and
more recent traders being offered units
In the criteria, agreed in consultation with traders, the
length of operation at the shopping centre was used as a
‘tie-break’ when all other criteria were equal between two
businesses for their preferred location. The reason for
this was to make sure the criteria prioritised a business’s
chances of success and creating a good mix of relocated
businesses in each site that would drive footfall to each
other. The tie-break was required only on a very small
number of occasions.
Businesses offered a unit that they are unhappy with
because of size or location
The application process ran a ‘preference’ system where
traders expressed first, second and third choices for
locations. This was to help the panel understand the
preferences more fully and so make offers to as many
businesses as possible within the limitations of the sites.
If English is not your first language or you would like some assistance with the content of this note, please contact
nick.wolff@southwark.gov.uk
Businesses could also express a preference for a
particular unit or units as well as a location. After
28 applications were assessed against the criteria, some
businesses were unsuccessful with their preferred units
or location but were offered space elsewhere.
Businesses may now decide whether this could be a
viable location for them or consider alternatives, using
Businesses that meet the criteria not being offered
space
A small number of businesses simply could not be
accommodated following the assessment and allocation
process, as there was no suitable space left that met their
preferences. In some cases, businesses lost out to
another business offering a similar product or service.
These businesses may still be offered space if any of the
first round of offers are not taken up and units become
available.
9. Ongoing Support
For all businesses that have not been offered space at
these sites, or wish to discuss their offer in more detail,
Tree Shepherd are available to provide advice on next
steps.
Drop-ins are every Tuesday, Wednesday and Thursday
1.30pm to 4.30pm at Unit 231, Elephant and Castle
Shopping Centre. Pre-booked meetings can also take
place in the mornings and 4.30pm onwards, on request.
Enquiries and calls at any time:
Lydia@treeshepherd.org.uk Mobile: 07561 012895
Please note, if meetings are taking place during the time
you call, you may be asked to come back at the next
convenient time.
Individual feedback will be available through Tree
Shepherd after 12 April.
Southwark Council are also organising a follow-up
support session specifically for market traders and
barrow holders unsuccessful in securing a unit. The
council is also exploring all options around alternative
sites for market traders.
10. Relocation Fund
The Relocation Fund will be available to all eligible
businesses that relocate, regardless of where they move
to. Businesses that have not been offered space at these
sites are therefore equally as eligible for the Relocation
Fund as those that have. Proposals for a separate
application process will be discussed at the Trader Panel
in the coming months.
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