News
Norwegian wealth fund eyes Meadowhall acquisition
22nd April 2024The world’s largest wealth fund is looking to buy out British Land’s 50% stake in Sheffield’s Meadowhall, in a deal valuing the scheme at £725m. Norwegian fund Norges – which is worth approximately £1.3 trillion – is in the latter stages of negotiations with British Land, The Sunday Times has reported. The two organisations have been co-owners of the shopping centre since 2012, when the wealth fund acquired 50% of the asset in a deal valuing the scheme at over £1.5bn. The new valuation of £725m represents a drop of £475m. The Times first reported in September that the asset was up for sale, with agents from CBRE appointed to handle the process. It was then reported in January that Mike Ashley’s Frasers Group was a frontrunner amongst a number of interested parties to purchase the scheme.
Deals
Oliver Bonas opens largest Kent store at Bluewater
22nd April 2024Oliver Bonas has opened its largest store yet in Kent at Bluewater shopping centre. The clothing and homewares retailer has taken 3,272 sq ft on the scheme’s Lower Guildhall, opposite John Lewis. The store offers a range of clothing, accessories, and furniture. James Waugh, centre director at Bluewater, said: “Oliver Bonas is a brand that our guests have told us they were keen to shop at in Bluewater for some time, and we’re excited to be finally welcoming them to our retail line-up. “The new store will have been worth the wait for our guests, as we’re proud to say this is the largest Oliver Bonas in the region, with the widest range of products on offer. We know our guests will love the array of designs available in the new store.” Oliver Tress, founder of Oliver Bonas, added: “We are excited to be expanding our presence into Bluewater shopping centre. We’re not just opening a new store; we’re creating an uplifting space where curated design meets community, and we’re inviting people to come and explore, and to discover unique finds and a joyful experience.”
Requirements
Aldi unveils wish list of priority London locations
21st March 2024Aldi has revealed its list of priority locations in London where it is looking to open new stores. The supermarket retailer recently announced its long-term plan to operate 1,500 stores across the UK, with a particular interest in locations within the M25 due to strong demand. As part of a £500m investment to increase its presence in London, Aldi is aiming to open a further 100 stores within the M25. Priority locations include: Aldi is offering a finder’s fee for property agents, who recommend a previously unknown site, of 1.5% of a freehold price or 10% of the first year’s rent for leasehold sites. The retailer is on the hunt for sites at least in size 20,000 sq ft for its standard stores, with around 100 dedicated parking spaces and preferably on a main road with good access and visibility. Aldi is also looking for smaller sites to accommodate its Aldi Local format, which are around 5,000 sq ft in size. Jonathan Neale, managing director of national real estate at Aldi UK, said: “We want to make high quality, affordable food accessible to all, but there are still many areas in the capital that don’t have access to an Aldi […]
Insights
Teesside Park: British Land’s “winning” retail park format in action
14th March 2024As the retail landscape has evolved over the past few years, retail parks have become an increasingly attractive investment, or as British Land boss Simon Carter previously put it: “the winning retail format”. But what drives their success? For Grace Waterworth, asset manager at British Land, retail parks offer customers and businesses the three ‘A’s – affordability, adaptability, and accessibility. Waterworth is part of the team behind Teesside Park in Stockton-on-Tees, an asset which she says is a “prime example” of offering these three ‘A’s: “The format is incredibly attractive to retailers due to lower occupational cost ratios than high streets or shopping centres, driven by lower rents, rates and service charges and strong store turnover”, she says. Once a traditional, ‘boxy’ retail park, Teesside Park in the Tees Valley – of which British Land owns around 585,000 sq ft – is the primary retail destination for the surrounding catchment, which includes the towns of Darlington, Hartlepool, Redcar, and Middlesbrough. Accessibility to these surrounding areas has played a key role in the scheme’s success, says Waterworth: “At Teesside Park there is excellent access from the A66 and A19 directly into a large, free car park. This makes Teesside Park ideal […]
Advice
Finding the right retail property for you
20th March 2024William Barton / Shutterstock.com Every business is unique, and for those who want to enter the world of physical retail, finding the right property is no different. If you’re a retailer ready to take your business to the high street, finding the right place to start can be daunting. It can be a real balancing act, but knowing what to look for before you begin your search can give you a head start. So here are the top things to consider when looking for the right retail property: Location, location, location It may be a cliché at this point, but the old adage rings true: location is one of the most important things to consider when choosing the right retail property. The first thing to consider is your target audience. You’ll want to find somewhere that attracts a demographic that matches your customer base. For example, if your business is looking to appeal to an audience of young adults, an area with a high student population such as in a university district would be an ideal spot. It’s also important to consider your local competition. Depending on the type of business you run, nearby competition either be beneficial to you […]
News
Asda’s EG and Co-op acquisitions drive £1bn earnings
22nd April 2024Asda’s acquisitions of former EG Group and Co-op stores helped drive an adjusted EBITDA after rent of over £1bn in 2023. The supermarket retailer said the £1.078bn adjusted EBITDA figure – a year-on-year increase of 24% – was also driven by an increase in like-for-like sales growth (excluding fuel) of 5.4%. Asda acquired 132 sites from the Co-op in autumn 2022, and completed on a £2.07bn purchase of petrol forecourt group EG Group’s UK business last year. The retailer said the former EG Group stores contributed £27m over a two-month period, whilst the former Co-op stores contributed £54m. Asda has now opened 479 ‘Express’ sites, compared to just three at the end of September 2023, enabling the retailer to reach 1,000 UK stores for the first time in its history. The retailer added that it is on track to have 500 convenience stores by the end of the year, bolstered by new standalone openings. Mohsin Issa, Asda co-owner, said: “Asda is a supermarket powerhouse built on rock-solid foundations – as our strong annual results and the 18m customers who shop with us every week demonstrate. Our strategy is all about growth and Asda increased underlying profit to more than £1bn and […]