Posts from April 2023

Co-op issues profit warning for 2023

5th April 2023

The Co-operative chair Alan Leighton has said that group profits in 2023 are likely to fall, warning of “another year of economic uncertainty and higher prices”. This comes alongside the group’s financial results for 2022, with the Co-op seeing an increase in revenue of £0.3bn, however its underlying operating profit was unchanged from 2021, remaining at £100m. The co-op said entered 2022 targeted cost savings of £50m, but in recognition of a challenging economic environment this was raised to £101m, which was met. The group said the sale of its petrol forecourt business in October meant that group revenue and profit took hits of £150m and £10m respectively. However this contributed to a reduction in net debt for the group, down to £333m by the end of 2022, compared to £920m a year prior. It added that active Co-op memberships had grown for the first time in five years to 4.41 million members. The group has set a target of welcoming one million new members over the next five years. Co-op said its board remains confident in its strategy as it looks to drive growth through its core businesses via physical and digital routes. “We expect the volatile external environment...

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Franco Manca operator to be snapped up for £93m

5th April 2023

Fulham Shore, the parent operator of the Franco Manca and The Real Greek restaurant chains, is set to be acquired by a global food company in a deal worth around £93m. The group has received an offer from Great Sea Kitchens, a newly-created company operating on behalf of global restaurant operator Toridoll. Headquartered in Japan, Toridoll operates nearly 1,800 restaurants in 30 countries and regions within a variety of brands, including 10 Wok To Walk sites in the UK. Toridoll said that Fulham Shore’s business offers a “leading customer proposition”. “In spite of the challenging trading circumstances of recent years, Fulham Shore has continued to deliver robust performance overseen by its highly experienced management team”, it said. The restaurant group added that it recognised the opportunity to expand Fulham Shore’s presence in the UK, where its 97 sites reflect an “under penetration compared to peers”. It’s also eyeing expansion internationally and through Franco Manca’s newly-launched retail channels. The news comes alongside Fulham Shore’s trading update for its financial year ending 26 March 2023, in which it said both its restaurant businesses delivered creditable performances despite the impact of industrial action, social disruption, and cost of living increases on its customers....

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Loungers to open second Leeds site in three months

4th April 2023

Loungers is preparing to open its second Leeds café in three months with the launch of Bianco Lounge at White Rose Shopping Centre. Its launch on 17 May follows that of Caballero Lounge, which opened in nearby Thorpe Park in February. Loungers also operates the Cosy Club and Brightside roadside dining brands. Gemma Irwin, community manager at Loungers, said: “We’re looking forward to opening Bianco Lounge in Leeds. We hope our family friendly environment and top-notch food and drink offering will prove popular.” Steven Foster, centre director at White Rose, added: “The Bianco Lounge is a perfect addition to our existing mix, offering a relaxed environment for our visitors to enjoy all-day dining and delicious drinks.”

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Asda lays out requirements for convenience store rollout

4th April 2023

Asda is seeking properties nationwide for its store expansion plans, following its appointment of real estate advisor CBRE. The advisory firm has been chosen to bring the grocer’s ‘Asda Express’ brand to more sites across the UK. Asda is searching for sites between 3,500 and 5,000 sq ft in highly visible locations close to transport hubs. Ideal sites will have a petrol filling station and will be based in new housing developments or district centres. The grocer is also considering the acquisition of existing businesses and further supermarket opportunities. Launched in October 2022, Asda Express is the retailer’s smaller-format convenience brand. The first two Asda Express stores opened before Christmas and the grocer is looking to open another 300 by the end of 2026. Adrian Hanley, director, UK retail at CBRE said: “Shopping patterns have evolved in recent years and whilst some shoppers will continue to grocery shop solely online, there will always be incredibly strong demand for physical grocery stores. Enhancing its store offering to include convenience stores on a national scale will further solidify Asda’s position as a leading supermarket.” Founded in 1949, Asda currently operates 633 stores across the UK. In October 2020, the supermarket retailer was...

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£9m price tag for site of world’s largest Lush

4th April 2023

The home of cosmetics brand Lush’s largest store has been put on the market. The 14,854 sq ft property on Liverpool’s Church Street was once home to Dorothy Perkins and Burton. Lush took up occupancy of the four-storey building in 2019 and has a deal to remain in the property for a further decade. The site is home to a floor dedicated entirely to Lush Spa. The property is in close proximity to a Tk Maxx, Primark, and Marks & Spencer. The sales process is being overseen by Knight Frank who have been instructed to seek offers in excess of £9m.

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Birmingham mixed-use development site set for resi switch after acquisition

4th April 2023

Vita Group has reached a deal with LCR to acquire Birmingham’s Axis Square site, and will look to create a primarily residential development. Adjacent to The Mailbox and Arena Central, the 4.5-acre site was previously home to Birmingham Central Goods Station and had been earmarked by the council for a mixed-use development. However, Vita are set to consult with Birmingham City Council to discuss a new masterplan involving the creation of a mixed residential development under the name of Goods Station. Mark Oakes, Vita Group chief commercial officer, said: “Goods Station has the opportunity of becoming a true landmark destination within the city, fantastic places to live which attract talent, add to the growing economy and draw in tourism.” Peter Hawthorne, chief executive officer for LCR, added: “We have been working for a number of years to help the site realise its potential through enabling wide-scale regeneration, and are now excited to be able to handover to Vita to continue the transformation that we started and create a vibrant new destination in the city centre.” Savills provided agency services on the deal while Deloitte and Shoosmiths provided legal counsel for Vita Group. Eversheds Sutherland acted for LCR.

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New images show £70m Rylands development plan

4th April 2023

Architecture company Jeffrey Bell + Company has unveiled renders of what new developments at Manchester’s iconic Rylands building could look like. Global real-estate investment firm AM Alpha is set to redevelop the Grade II listed former Debenhams building into a mixed-use development site comprising retail, leisure and office space. Originally built as a warehouse, the building on the corner of Market Street and High Street later saw use as a department store until Debenhams’ collapse in 2021 saw its closure. The refurbishment will include redevelopment of the existing business and conversion of the upper floors into high-quality office space. The ground floor will see the development of a shopping arcade. Work on the site is expected to begin in the coming weeks with completion expected in early 2025. Construction company Russell WBHO is acting as a construction partner for the project while property companies OBI and Barker Proudlove are letting agents for the building.

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B&M secures £450m funding agreement

4th April 2023

B&M has completed a refinancing of its banking facilities, securing £450m of commitments provided by a syndicate of seven banks. The funding is split halfway between a £225m term loan and a £225m revolving credit facility, to be paid within five years. Two additional one-year extension options are also available subject to agreement with the syndicate. B&M says the two loans will fully cover its anticipated bank borrowing requirements. The arrangements replace the existing £300m term loan and £155m revolving credit facility which were expected to be fully paid by April 2025. The retailer saw a successful third quarter of the 2023 financial year. In the 13-week period to December 24, the retailer saw a growth in revenue of 12.3% on a year-on-year basis to £1.56bn. Crediting its position as a discount retailer, B&M said it had seen strong performance across all of its UK categories, with the retailer expecting its earnings for the year to be in the range of £560m to £580m, ahead of analysts’ estimates of £557m.

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Leeds-based bar group seeks national expansion

4th April 2023

Escapism Bar Group is looking to open sites across the UK with a number of new launches on the way. The group was founded in 2004 by husband and wife team Phil and Mel Harrison with the launch of Mean Eyed Cat in Leeds and now operates six more differently-themed bars within the city: Tiki Hideaway; Call Lane Social; The Maven; Cuckoo; Brooklyn; and Verve. It recently launched its first site outside of Leeds with a second Mean Eyed Cat bar in Liverpool. The group is due to open a new bar in Manchester’s Northern Quarter in September, and is targeting sites in Birmingham, Sheffield, and Nottingham by 2025. Escapism Bars’ managing director Grant Dexter said the company’s ambition was to become “the UK’s most-loved group of bars”.

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Bearmont continues expansion campaign with Welsh scheme acquisition

4th April 2023

Property developer Bearmont has made its first shopping centre acquisition of 2023 with the purchase of The Menai Centre in Bangor, North Wales from Columbia Threadneedle. Bearmont CEO Rob Lloyd said the group was seeking more shopping centres as it continues its expansion campaign. Developed in 2007 by Cathco Property Group for £18.5m, the 130,000 sq ft is currently facing difficult times and suffers from a 80% vacancy rate after losing anchor tenant Debenhams. Bearmont says it is aiming to bring new tenants into the scheme and rejuvenate the surrounding area. The group said it is already in the process of letting a number of empty units with three currently in solicitors’ hands. Lloyd said: “Footfall dropped significantly which has had a major impact on the centre and the high street in general also there has been the rise of online shopping and the pandemic hasn’t helped, which have impacted on high street shopping across the UK.” “There is far too much retail in the city centre together with a lot of derelict property. Also coupled with out-of-town retail units it’s just too much and it is not sustainable so other uses need to be looked at for example assisted...

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Trafalgar Entertainment acquires first Scottish venue

4th April 2023

Trafalgar Entertainment (TE) has acquired Glasgow’s Pavilion Theatre, the group’s first Scottish Venue. The 1449-capacity theatre on Renfield Street is one of Scotland’s oldest and will join TE’s Trafalgar Theatres division’s portfolio alongside venues including the West End’s Trafalgar Theatre itself, Australia’s Theatre Royal Sydney, and 12 regional UK sites. Since opening in 1904, the venue has played host to comedy, music, entertainment, and traditional pantomime for over a century. A variety of entertainers have performed at the venue, including Charlie Chaplin, Marie Lloyd and Harry Lauder, Glasgow legends Billy Connolly, The Krankies, and Lulu as well as comedians Jason Manford, Sara Pascoe, and John Bishop. Helen Enright, CEO of Trafalgar Theatres, said: “Glasgow is a vibrant, energetic city and The Pavilion Theatre has earned its place in the city’s entertainment landscape. We are committed to building on that success – continuing to do what the Pavilion does best, maintaining the legacy of one of Glasgow’s best-loved and best-supported pantomimes, increasing the number of shows presented, investing in the building, growing audiences and ensuring a successful future for this beautiful, iconic theatre.” As part of the changes, the venue’s general manager Iain Gordon, who has held the role since 1984, will...

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Heart of London launches night-time economy strategy

3rd April 2023

The Heart of London Business Alliance (HOLBA) has launched a new strategy which aims to build and support the evening and night-time economy in the West End. The Evening and Night-time Economy Strategy, Vision and Action Plan looks to make the West End more inclusive, safe, accessible, attractive, and dynamic between the hours of 6pm and 6am. The strategy, in collaboration with urban design practice Publica, is accompanied by an economic analysis conducted by Arup. HOLBA says the report shows that the West End economy is struggling to recover from the Pandemic. High living and operating costs, supply chain disruption, staff shortages, overcrowding on the streets, limited step free access, antisocial behaviour, footfall stagnation, lack of facilities and amenities, a disconnect between public policies and “myopic” decision making at statutory level are all reasons cited by the Alliance as to why the area is struggling. HOLBA says that the West End attracts 200 million visitors per year and boasts around 100 commercial galleries, 53 music venues, 39 theatres, 4 casinos, 11 dance venues, and 3 art institutions. This is in addition to a range of accommodation, restaurants, bars, clubs, cafés, and shops. Ros Morgan, chief executive of HOLBA, said: “The...

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Boohoo makes directorate changes

3rd April 2023

Boohoo has appointed Alistair McGeorge to its board as an independent non-executive director. Taking effect from 31 March, McGeorge succeeds Brian Small as the online fashion retailer’s deputy chairman and will act as interim chair of its audit committee until an additional director to fill the role is found. He is also a member of the remuneration, nomination, risk, and ESG committees. McGeorge is also currently a non-executive chairman of East Imperial and The Original Factory Shop, and is also chair of The Retail Trust. He has worked within the retail industry for the last 30 years and has also worked as chief executive and/or chair of various UK retail brands. Mahmud Kamani, group executive chairman, said: “Alistair has extensive board-level experience with some great retail brands. We look forward to working with him and are confident that he will help us deliver our ambition to be the global fashion leader.” His appointment means that Neil Catto has stepped down as executive director of the group, after spending nearly 12 years with boohoo, the majority of which was as chief financial officer.

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abrdn acquires Hertfordshire Morrison’s for £18.9m

3rd April 2023

abrdn Property Income Trust (API) has completed the purchase of a Morrison’s supermarket in Welwyn Garden City, Hertfordshire for £18.9m. The investment company, formerly Standard Life Aberdeen, said that due to commercial sensitivities it could not disclose the yield on the transaction but will provide an update in the future. The 60,000 sq ft supermarket is based on a 5.5 acre site and hosts an eight-pump petrol station. The purchase was a sale and leaseback, with the supermarket entering into a new 25-year lease with intermittent rent reviews. Mark Blyth, deputy fund manager of API, said: “We are very pleased to have completed this off-market acquisition within the first quarter of the year. In addition to the long lease to Morrison’s, we were attracted to the strong-trading history and the dominance of the store in the local market. The pricing and rent review structure will offer API an attractive income stream that is accretive to dividend cover.”

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Cineworld strikes deal with lenders and drops sale process

3rd April 2023

Cineworld has agreed a debt restructuring agreement with its lenders and has subsequently ended its sales process after failing to find a buyer. The world’s second largest cinema chain planned to ship its UK, Republic of Ireland, and US centres after filing for bankruptcy in August 2022. At the time, the chain was facing $5bn (£4bn) of debt. If the restructuring agreement is reached, Cineworld say that its debt could be reduced by approximately $4.53bn (£3.66bn). The group is now planning to raise $2.26bn (£1.83bn) of new funding. During the restructuring process, Cineworld said that its was “business as usual” at its cinemas. Mooky Greidinger, chief executive officer of Cineworld, said: “This agreement with our lenders represents a ‘vote-of-confidence’ in our business and significantly advances Cineworld towards achieving its long-term strategy in a changing entertainment environment.” He added that the chain was now benefitting from an increase in film releases and a boost in footfall at cinemas. While terminating its sales process for its UK, ROI, and US sites, Cineworld says it is still considering the sale of its business in other parts of the world. The group operates 740 sites globally.

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The Fragrance Shop completes leasing lineup at Oxford Street development

3rd April 2023

The Fragrance Shop is set to join Great Portland Estate’s (GPE) 70/88 Oxford Street, completing the leasing at the development. Occupying the 2,300 sq ft Unit 2, the independent fragrance retailer’s store will benefit from an eight-metre double-height frontage and sit in a prime location next to the Elizabeth Line. The retailer will join a number of brands at the development including Reserved, Pandora, and competitive socialising concept Boom: Battle Bar, which launched at the end of 2022. Due to open in the summer, The Fragrance Shop’s Oxford Street unit will be the brand’s first standalone store to provide a select range of its more luxurious range of fragrances. Sarah Goldman, senior portfolio manager at GPE, said: “This is a pivotal moment for the brand, and we’re excited to welcome them to the building which not only adds to our standout retail and social offering but also completes the leasing for the entire development. Combined with the increased footfall we are already seeing at Tottenham Court Road; our development provides a best-in-class destination in an increasingly prime location.”

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Lark London debuts outside of capital

3rd April 2023

Lark London has opened the doors to its first store outside of the Capital. Taking a 1,558 sq ft unit, the independent lifestyle boutique has launched at Woking’s Victoria Place. The Scandinavian-styled store will offer lifestyle and homeware products from over 300 independent brands, including The Aromatherapy Co., My Doris and Ortigia Sicilia. The store’s location on Commercial Way sits in a convenient spot for shoppers, with easy access to the town centre and the train station. Lark London’s opening follows the recent news that HMV will be making its return to Victoria Place, which came one year on from the scheme’s official opening after a significant regeneration project. John-Paul Jackson, centre manager for Victoria Place, said: “As a town, we strive to curate unique and high-quality shopping experiences for locals and visitors alike, which Lark London effectively provides. We feel sure that this new space will succeed just like other community-focused operators have in Victoria Place.”

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Unique properties toi-let in London

1st April 2023

Westminster Council is looking for potential businesses to spend a penny on two former public bathrooms in Central London, which offer a near combined 2,500 sq ft of underground space. Agents from FMX Urban Property Advisors are looking to engage with suitable candidates who are prepared to obtain planning permission and undertake conversion works. FMX say the out-of-order sites lend themselves well for conversion to café, bar, fitness, gallery or showroom units, and that both offer space than can be opened and incorporate a street level seating area. Site number one comprises 1,046 sq ft and sits adjacent to the Royal Courts of Justice in The Strand, nearby to Covent Garden, Holborn, and Blackfriars. Site number two is a 1,418 sq ft unit on Marylebone Road located next to Baker Street Station.

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