Posts from March 2023

Marple, in Stockport, Greater Manchester, is due to receive £20m in funding to build a new community hub, just weeks after the councils Levelling Up Funding request was rejected. The new centre will contain a pool, library, gym, community space and play park, funded as part of the Capital Regeneration Projects announced in yesterdays (15th) spring budget. After Marple Baths was closed in 2018 local leaders were disappointed that plans were initially overlooked. Mark Hunter, council leader said: “I’m delighted we have finally secured £20m worth of Capital Levelling Up monies towards The Marple Active Communities Hub. I’m excited to see the health and economic benefits this hub will bring to Stockport along with community pride.” The council has claimed the centre will be made from sustainable materials and use low carbon and energy technology. Planning is expected to be submitted later this year.

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Spring Budget: “Lack of support” from Government say pub groups

The chief executive of the British Beer and Pub Association (BBPA) has said that a lack of help for pubs and breweries with energy costs could see more businesses struggle to stay open. Describing the budget as “make or break”, Emma McClarkin said that measures revealed by the Chancellor won’t rebalance inflation or energy contracts and the impact they are having on businesses. She added that the industry would be facing an overall tax hike, rather than a reduction come August. “The Chancellor highlighted how our pubs are the most treasured community institution, and we appreciate his efforts to provide some relief, but a lack of immediate support in today’s Budget will still put the future of many of them at risk”, the BBPA chief said. McClarklin added that while the cut to the draught duty rate was welcome, the BBPA was looking forward to seeing what the ‘Brexit Pubs Guarantee’ will bring to the sector. The chairman of the Campaign for Real Ale (CAMRA), Nik Antona, said that with energy support being extended for households but not licensees, communities will lose pubs and social clubs. “The future of many businesses is now at risk, with an imminent cliff edge...

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Liverpool hotel goes to market for £5m

Savills has launched the sale of Castle Street’s Tune Hotel for £5, held on a long leasehold with 150 years unexpired. The Grade II listed hotel comprises of 100 bedrooms across four upper floors in Liverpool’s city centre. The site sits among key tourist attractions including Liverpool’s waterfront, The Royal Albert Dock and Liverpool One. The sale also includes a retail unit investment let to Greggs. Savills Manchester hotel director, Tom Cunningham said: “This is a prime hotel opportunity for an incoming buyer with opportunity to rebrand and add value. Tune is in a fantastic location, with Liverpool city centre currently undergoing a huge amount of regeneration. We expect there to be a lot of interest coming forward.”

Deals News

Spring Budget: Eccles is the first of 16 regeneration projects to receive funding

Eccles is due to receive £5.4m to help fund its town centre regeneration. This comes as part of the Capital Regeneration Projects announced in yesterdays (15th) spring budget. The town requested Levelling Up Funding in 2022 as the Salford area had not received essential government funding, however this was denied. Plans have since been assessed as ‘high quality’ and are set to receive the same level of funding as requested last year. The proposal has been developed by Salford City Council along with its residents and local businesses to bring life back to Eccles town centre. The council will continue to work with the community as they seek a development partner. Salford City Mayor, Paul Dennett said: “It’s no secret that in recent years Eccles, like many other town centres up and down the country, has faced decline. So, today’s announcement in the Spring Budget is welcome and provides much needed funding for the city. He added: “This is long overdue funding and I’m glad the town centre is now getting the support it badly needs. Eccles is one of 16 regeneration projects across England that will be receiving funding from an allocated investment of more than £200m.

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52,000 sq ft of Southampton mixed-use space heads to market

Southampton’s Centenary Quay has appointed Savills and local agent Keygrove to market 52,000 sq ft of retail and leisure space at the waterside development. Varying in size between 1,082 sq ft and 23,320 sq ft, the new units in the Woolston suburb of the city are set to sit alongside nearly 1,300 residential dwellings as part of a wider development. Located in the centre of Centenary Quay, the retail and leisure space will provide direct access to the waterside and provide views of the Ocean Village marina opposite. Units at the development will also benefit from a 300 space underground car park with stairwell and lift access. Existing occupiers at Centenary Quay include Snap Fitness, Mettricks Café, Quayside Bar & Dining Restaurant, and Vivid Beauty, while the headquarters of high tech marine robotics company Ocean Infinity is located nearby. The densely populated Woolston suburb is located less than three miles from Southampton City Centre and is home to a number of local amenities including a Lidl supermarket. Lauren Udall, director of Keygrove, said: “We are delighted to launch this space at Centenary Quay which is a great opportunity to reinvigorate the wider scheme. The space was originally constructed to accommodate...

Deals News

Spring Budget: “Desperately disappointing” lack of comment on business rates

The Chancellor’s lack of comment on business rates during today’s Spring Budget was “desperately disappointing”, says Colliers’ John Webber. He added that there was “no reassurance” that the Government had engaged with the retail and hospitality industry, despite the new 2023 revaluation list going live in two weeks’ time. Colliers has been a vocal campaigner for business rates reform, stating the current system is not fit for purpose and penalises the retail and hospitality sectors, deterring businesses from expanding and investing. The head of business rates at the real estate company has previously laid out what steps he believes the Government should take with regards to rates. Jeremy Hunt announced that some authorities will be able to retain their business rates to decide their use, while there would be rates relief in the 12 new investment zones. Despite this, Webber has shunned these moves as irrelevant: “Business rates retentions are often a hospital pass- the local authorities are given more authority to spend funds raised- but the amount of money raised never fills the gap between what is raised and what is needed. Sometimes retention can be a real negative to the local authority with the impact of appeals and the risk...

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Spring Budget: Chancellor unveils ‘budget for growth’ as UK escapes recession

Chancellor Jeremy Hunt has unveiled the contents of his first Budget in the House of Commons today. Among the announcements made, he confirmed that the Government is set to grant £200m to regeneration projects, and will commit over £400m to new levelling up partnerships in areas such as Redcar, Cleveland, and Blackburn. A further £161m will be made available to mayoral combined authorities and Greater London. Speaking in the House of Commons, Hunt said he believed the economy was “proving the doubters wrong”, citing an International Monetary Fund claim that the UK will not enter a recession in 2023, despite earlier forecasts. However, the economy is expected to shrink by 0.2% Growth of 1.8% is predicted for next year, with 2.5% and 2.1% predicted growth for 2025 and 2026 respectively. The Chancellor added that the Government would create 12 new investment zones, or as he put it; “12 potential Canary Wharfs”, each being offered tax breaks and other benefits of up to £80m of support over the next five years. There will be one of these zones in each of Scotland, Wales, and Northern Ireland. Hunt said that a £63m fund would be invested into public leisure centres and pools...

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Spring Budget: “Missed opportunity” for tax-free shopping reintroduction

The Chancellor has missed an opportunity to reintroduce tax-free shopping for international visitors, the chief executive of the Marble Arch Business Improvement District has said. Kay Buxton said the reintroduction of the scheme, which would allow visitors to the UK to claim back on VAT for their purchases, would have provided a much-needed boost to the economy. According to research from the Association of International Retail, shopping accounts for 46% of all tourist spending, and the reintroduction of tax-free shopping would lead to an extra £2.1bn spent on shopping by overseas visitors every year, with a further £1bn spent on hotels, restaurants, and visitor attractions. “It is frustrating that the Chancellor has again ignored widespread calls to reintroduce tax-free shopping for international visitors”, Buxton said, referencing calls made by herself and others prior to November’s Autumn Statement calling for the reintroduction of the scheme. “The removal of tax-free shopping has damaged the international appeal of the UK for visitors, so this is another missed opportunity by the Chancellor”, she concluded. These sentiments have also been shared by the New West End Company, who said that visitors “might be coming here but they’re not spending money”, due to a lack of...

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Dune calls in financial advisers in hunt for new investors

Footwear brand Dune has sought the services of global services firm KPMG as it looks to bring in new investment. This follows a period of strong trading for the brand, which saw an increase in turnover to £139m for the year to January 2023, up from £109m recorded in 2022. Dune also recorded an increase in earnings (EBITDA) from £6.7m to £10.1m. The brand made a number of changes to its business model in the year to January, including reducing the amount of its department store concessions, restructuring its portfolio, and expanding its online and international presence. Dune is planning to open 25 standalone stores in the UK over the next three years, while also continuing to grow globally, with international sales accounting for 35% of Dune’s business. Dune founder and chairman Daniel Rubin said: “Having spent 47 years in the footwear industry the time is right to realise the investment I have made in Dune. The business is strong with a first-class management team and exciting growth opportunities, both in the UK and internationally.”

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John Lewis appoints partnership chief executive

Chairman of The John Lewis Partnership, Sharon White, has announced the appointment of a new chief executive. Currently a non-executive director of the partnership, Nish Kankiwala will take on the new role on March 27, and will remain a member of the board. Kankiwala was previously chief executive at Hovis and has held senior roles at Burger King and PepsiCo. Sharon White said: “I’m delighted that Nish is to be Chief Executive. Since joining the Board in 2021, Nish has developed a deep understanding and appreciation of the Partnership model and has provided counsel on our transformation. He will be able to supercharge this in his new role while protecting the Partnership’s ethos.” Nish Kankiwala added: “It’s a great privilege to be appointed as Chief Executive following two rewarding years on the Partnership’s Board as a non-executive director. I am looking forward to playing an even fuller part in the transformation of the Partnership, to be a modern business loved by customers and treasured by our Partners.”

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Plans submitted for £135m leisure and resi hub in Wigan

Plans to transform Wigan’s former Galleries Shopping Centre into a new £135m leisure and residential complex have been submitted by Cityheart and Wigan Council. The 84,000 sq ft Multi Media Complex (MMC) will contain a six-screen cinema, 10 lane bowling alley, indoor mini golf, arcade, and residential space as well as a new hotel and a range of bars and restaurants. The Galleries was bought by Wigan Council back in 2018 as part of its Strategic Regeneration Framework to improve economic growth and diversify the town centre’s offering. Wigan Council has partnered with Cityheart to develop the new mixed-use hub which aims to be one of the UK’s most innovative low carbon developments. Warren Taylor, development director at Cityheart, said: “Having superb town centre leisure facilities will transform Wigan for existing and future residents and creates a destination for visitors which will enhance the local economy.” The first phase of demolition is expected to be completed by the end of 2023, making way for work to start on site on the new market hall. The completed scheme is expected to create over 600 jobs and have a Gross Value Add (GVA) impact of £26.5m per year.

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New signings at Liverpool ONE contribute to boost in sales

Liverpool ONE has credited its selection of UK and international brands as it enjoys a boost in sales at the beginning of 2023. Since the start of the year, the Liverpool scheme has enjoyed a 16.5% increase in sales compared to the same period in 2022, outperforming the national average of 5.2% (BRC data). The centre has also benefitted from a 6.2% increase in footfall for the year to date against 2022, and is predicting a rise of a further 8% as the city gears up the arrival of Eurovision this summer. Asset manager Grosvenor said these figures reflected an unprecedented demand for Liverpool ONE amongst retailers, with the scheme seeing 36 brands signing, renewing, or regearing at the centre in 2022, for a total of 330,000 sq ft. Included in these deals were Under Armour, Charlotte Tilbury, Omega, Russell & Bromley, Rituals, Slim Chickens, size?, Black Sheep Coffee, and Bread Street Kitchen. Gravity is also currently fitting out a £10m 100,000 sq ft leisure and entertainment destination, while M&S prepares to open a flagship store of the same size, both occupying the former Debenhams store at Liverpool ONE. Iain Finlayson, estate director at Liverpool ONE, said: “Despite being very...

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CMA could halt Asda’s £600m petrol forecourt deal

A deal which could see 132 Co-Op petrol forecourts become part of Asda is set to be subject to a phase two investigation by the Competition and Markets Authority (CMA). The CMA said its investigation into the merger found that the acquisition could mean higher prices or less choice for motorists and shoppers in 13 areas. Colin Raftery, CMA senior director of mergers, said: “While competition concerns don’t arise in relation to the vast majority of the 132 sites bought by Asda, there’s a risk that customers could face higher prices or worse services in a small number of areas where Asda would face insufficient competition in either groceries or fuel after the deal goes through”. Asda finalised the deal to take control of the sites in October 2022, for a total value of around £600m which included 129 existing sites along with three development sites. The arrangement would see some 2,300 Co-Op employees transfer to Asda. Although Asda holds ownership of the sites, the deal is subject to approval from the CMA, which issued an ‘Initial Enforcement Order’, which requires the purchased sites to remain separate from Asda until the investigation is concluded, a common procedure for deals of...

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Spring Budget: M&S boss calls for “decisive” action

Marks & Spencer chief executive Stuart Machin has called on the Government to commit to “decisive, practical action” ahead of Wednesday’s Spring Budget. Like many retailers, business rates remain high on the agenda for the M&S boss, who has called for the Government to reduce the multiplier to its 1990 level of 35 pence to the pound for all ratepayers. However, he emphasised that the country cannot cut its way to growth. Machin has called on Chancellor Jeremy Hunt to focus on three areas: workers’ skills, net zero, and regulation, if the UK is going to build a “growing, enterprising economy”. He said that UK policy surrounding skills is not fit for purpose, stating that the Government needs to focus on lifelong learning and the required skills needed to build a modern economy, and described a “real issue” surrounding training retail workers in digital skills. In regards to net zero, Machin said that current investment in infrastructure is insufficient to achieve targets and that the Government must focus on rolling out electric vehicle charging points and develop on-shore recycling for key materials. He added that the capital allowances super deduction, which is due to end later this month, should be...

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Spring Budget: Chancellor must not miss opportunity for business rates reform

Chancellor Jeremy Hunt must not miss the opportunity for fundamental business reforms, says the head of business rates at Colliers, John Webber. Ahead of Wednesday’s Spring budget, Webber said that the changes implemented by Jeremy Hunt in the Autumn Statement, such as freezing the multiplier and abolishing downwards transition in the next revaluation, were “merely putting a sticking plaster on a gaping wound.” Webber has called on the Government to reduce the multiplier to around 34 pence to the pound, it is currently frozen at 51.2p (and 49.9p for small businesses), which he describes as unsustainably high. “Nowhere else in Europe do businesses pay half the rental value of premises in property taxes. Set at this level, business rates deter new investment in business”, said Webber. He has also proposed that the Government extend retail reliefs beyond 2024. Currently, business rates relief for retail and hospitality premises has risen from 50% to 75% in 2023-24, however this only applies for the first £110,000 of business rates paid. Webber has urged for a reconsideration and has called for a tapering scheme to be applied “at the least”. Webber has also called for relief reviews every three years to ensure rates are paid...

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Silverwood calls in solicitors in Lush dispute

Silverwood Brands has instructed solicitors as it considers legal action against Lush after accusing the brand of failing to acknowledge a share transfer. Last month the cosmetics group claimed the retailer had not acknowledged its acquisition of £216.8m worth of shares, representing around 19.8% of Lush’s total share capital. Silverwood said that Lush had provided its reasoning for declining to record the share transfers, however has since “rejected” the reasons given by the beauty retailer. As a result the group has opted to instruct solicitors to take up the issues with Lush. Silverwood said it is comfortable with its position and will take the appropriate steps to protect its interests. “Silverwood hopes that the Lush management team will focus on building value for all Lush stakeholders, including minority shareholders such as the Lush Employee Benefit Trusts”, the group said in a statement. “Silverwood continues to invite a constructive and open dialogue with the Lush management team so that all matters can be resolved”, it continued.

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Spring Budget: Calls from West End and Knightsbridge for relaxed Sunday trading laws

The New West End Company (NWEC) and Knightsbridge Partnership have called on the chancellor to relax laws regarding Sunday trading for shops ahead of Wednesday’s Spring Budget. Under current laws, shops in England may only stay open for six hours on Sundays. The two districts, which are classed as the Capital’s only ‘international centres’ by the city’s London plan, are calling for the changes to help them compete with other global destinations. London has bounced back slower from the Pandemic than rival cities, which the two bodies have cited as a reason to call for changes to the Sunday laws. Steven Medway, chief executive of Knightsbridge Partnership, said: “We are seeing the beginnings of a recovery from the pandemic, but there are signs of London slipping down the league table”. “Authorities in competitor markets like Paris and Milan have moved with the times in accommodating changing consumer habits and are experiencing faster growth relative to 2019 levels. We need a levelling of the playing field with those markets and revised Sunday Trading rules would do just that.” NWEC chief executive Dee Corsi added: “To compete on the global stage, our international centre status should allow us to behave like other...

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Struggling Superdry calls in advisers

Superdry has hired a firm of City advisers as it looks to reverse its fortunes after multiple profit warnings for the fashion retailer, particularly in its wholesale business. City firm Interpath Advisory has been called in by the retailer to address Superdry’s cost base which some believe could lead to job losses. For the first half of the 2023 financial year, Superdry recorded losses before tax of £13.6m. During this period, the retailer’s wholesale business saw sales decline by 5.2%. In December, Superdry received financing worth up to £80m from investment company Bantry Bay, and its is likely that part of Interpath’s work would revolve around engaging with the firm. Speaking to Sky News, a Superdry spokesperson said: “While Superdry has seen strong store and online trading and the brand continues to resonate with consumers, these are challenging market conditions for all brands in the fashion sector. “We have engaged Interpath to advise us as we work to complete the turnaround of Superdry in today’s much-changed retail environment, and ensure we have the right cost base and structure in place for future success.” In February, Superdry boss and founder Julian Dunkerton denied plans that he intended to make the company...

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Plans for Royal Docks could see London host Grand Prix

Plans have been unveiled which could see the redevelopment of London’s Royal Docks and pave the way for Formula 1 to race in the capital for the very first time. The proposals put forward by LDN Collective and Dar aim to transform the docks into a globally recognised destination for sports, leisure and entertainment. The development would see the 10m embankment extended by a further 20m for a total of 2.7km stretching from ExCel to the University of East London, creating 48,140 sq ft of waterfront land. Through the creation of 28 movable and flexible floating modules, the waterside space could be expanded to accommodate a total of 70,790 sq ft of community space alongside the embankment. Should the site receive approval for Grand Prix racing, the dockside park can be disassembled to reveal the Formula 1 grade surface, while the floating units would be transformed into grandstands, food and beverage outlets, and entertainment facilities. Although Great Britain has hosted a Formula 1 Grand Prix every year since its inception, it has never been home to a street circuit, which are becoming increasingly occurrent on the racing series’ calendar. Formula 1 would follow in the tyre-marks of electric racing series...

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Sainsbury’s buys back freeholds for £431m