Posts from June 2023

NewRiver has said it enjoyed a “positive” year for its retail parks and shopping centres divisions, as the real estate investment trust (REIT) released its full year results. As of March 31 2023, retail parks and shopping centres respectively accounted for 28% and 37% of the REIT’s total portfolio, with 14 assets each. The year ended with NewRiver seeing 98% of its retail park portfolio occupied, with a 100% retention rate. The REIT said it had continued to see strong occupational and investor demand in its retail parks, with transactions being completed 0.8% ahead of estimated rental values. NewRiver’s shopping centre division also ended the year with a 98% occupancy rate, with a retention rate of 90%. The REIT said that occupational demand was reflected in positive leasing performance, with long-term deals transacted 2.3% ahead of estimated rental values. Over the last three years, NewRiver said is had completed long-term leasing transactions across its retail parks and shopping centres totalling respective amounts of £4.5m and £5.5m of annualised rent. Allan Lockhart, NewRiver chief executive, said: “Given our current high occupancy rates for retail parks and core shopping centres at 98% and the benefit of the reduction of business rates for...

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City Pub Group to integrate nine Mosaic sites into portfolio

City Pub Group (CPG) has said it will assume operational control of nine pubs in the Mosaic estate, and will add these sites to its existing estate. This comes after the group secured 52% of the Mosaic Pub and Dining Group’s shares, through the acquisition of existing shares in Mosaic’s The Galaxy Pub Company, The Pioneer Pub Company, and The Sovereign Pub Company. These acquisitions represent a majority shareholding for CPG in the Mosaic pubs, meaning the former will now integrate the latter’s sites into its portfolio. The integration of the sites brings CPG’s estate to 52 pubs. The group said the process should be “smooth”, given the two group’s existing supplier crossovers. The news comes alongside a financial update for the group, in which it reported “strong” trading for the first 23 weeks ending June 4 2023. CPG said that sales had improved by 20% against 2022, and were up 13% on a like-for-like basis. The group added that it expects the trend to continue into the second half of the financial year. Clive Watson, chairman of City Pub Group said: “Our estate is growing through cost effective acquisitions and we have reached a landmark moment for the City...

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ESTAMA UK appoints senior property management surveyor

ESTAMA UK has appointed a new senior property management surveyor as the asset and property management company looks to continue its expansion across the UK. James Nelson joins from JLL Australia, where he worked within their property and asset management team as a regional director, focusing on a portfolio of retail assets in Victoria and South Australia. He has also previously worked for 15 years at the Scentre Group, which operates a number of shopping centres in Australia and New Zealand under the Westfield brand. ESTAMA said his experience within the industry will help “cement its position as one of the UK’s leading commercial asset and property management agencies”. In his new role, Nelson will look to support the company’s drive to maximise the full potential of its clients’ properties, which include a mixed portfolio of UK commercial assets. James Nelson said: “I am delighted to have joined ESTAMA UK at such an exciting time for the company. I’m looking forward to bringing a new perspective to the team from my many years working in the shopping centre sector.”

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Italian childrenswear boutique to join the King’s Road

London-based Il Porticciolo is set to open a flagship store at 253 King’s Road, part of the Sloane Stanley estate. The Italian-produced clothing label will open a 1,077 sq ft, two-storey boutique in September, as it moves from its current home in Sydney Street. Founded in 2018 by Italian-born Carola Ploederl Cafiero, Il Porticciolo offers a range of premium children’s clothing for ages up to twelve years old and its customers include famous clients such as the Royal Family. The boutique will join other creative businesses in the Chelsea community such as nailcare salon Townhouse, Designers Guild, and artisan bakery Peggy Porschen. Hannah Grievson, property director at Sloane Stanley, said: “We are always looking to evolve, a key strategy for Sloane Stanley, and one area we identified was to expand our childrenswear offer.” “Choosing to relocate their flagship to the King’s Road is a complement to our successful and thriving community and the level of consumer that we attract”, she added. The signing follows the recent opening of homeware retailer Birdie Fortescue’s pop-up store and the upcoming launch of personal training business Ultimate Performance at Sloane Stanley’s estate. Levy Real Estate, Miles Commercial and Savills act on behalf of the...

Deals News

Crudo Cevicheria opens in Covent Garden

Crudo Cevicheria has opened its fourth London location in Covent Garden’s Seven Dials, site owner Shaftesbury Capital has announced. Opening in a 362 sq ft space, the build-your-own cevicheria will offer the restaurant’s most extensive menu to date, with both signature dishes and exclusive items up for grabs. Crudo Cevicheria Covent Garden features a takeaway counter and is also able to accommodate over 20 dine-in customers, with the restaurant fitted out in a pared-back, contemporary style. Customers will also be able to enjoy a selection of South American cocktails alongside signature bowls and side plates. The founders of Crudo Cevicheria, Carlos Soccoro and Maria Yanez, said that London’s food and beverage scene has long been missing Peruvian-inspired cuisine. The restaurant’s arrival follows the recent opening of Michelin-starred chef Tom Sellers’ Story Cellar in April at 17 Neal’s Yard, Seven Dials.

Deals News

A third of hospitality businesses say they’ll go bust in a year

One third of UK hospitality businesses believe they won’t survive the next 12 months, as high energy bills, inflation, and the cost-of-living crisis continues to put a squeeze on the industry. According to a study from Peckwater Brands, 70% of 250 senior figures within the industry said they would also be raising their prices in the coming months. Hospitality businesses have also been severely affected by industrial action, with UKHospitality stating earlier this month that the cumulative impact of strikes on the industry has cost businesses £3.25bn. A BrewDog chief executive also recently called on the Government to “get a grip” on industrial action. The study from Peckwater Brands also found that over half (55%) of hospitality businesses are struggling to find enough staff to operate, while 70% reported lower customer spending than a year ago. The research also found that of those surveyed, 44% were operating at a loss. Sam Martin, chief executive of Peckwater Brands, said: “Unfortunately, the challenges facing the hospitality sector will not disappear any time soon. Raising prices might be the only option available to many businesses, but with consumers wrestling with a cost-of-living crisis and seeking out lower prices wherever possible, this action could...

Insights News

Boots CFO quits after sale plans dropped

The chief financial officer of Boots has left the retailer after its US parent company abandoned plans for a sale of the business. Michael Snape quit in May after spending just under five years as CFO of the company, Sky News has reported. An existing Boots finance executive, Sam Hunter, will replace him. In June 2022, Walgreens Boots Alliance pulled out of talks with potential buyers after a series of negotiations, however many experts predict the process will be revived by the American company over the next 18 months. In a statement, a Boots spokesperson said: “After almost five successful years at Boots, Michael Snape, chief financial officer, Boots & No7 Beauty Company, has decided to leave the business. “During his time at Boots, Michael played a key role in successfully transforming Boots and we wish him all the best for the future and in his next role.”

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Puma set to join Gloucester Quays

Puma is set to join South West outlet and dining centre Gloucester Quays in the coming weeks. The brand will be opening at a 2,184 sq ft outlet store in June and join a line-up of other sportswear and lifestyle brands at the centre including Adidas, Timberland, and Levi’s. The new outlet store will sit opposite Le Creuset and offer a range of Puma’s apparel including its men’s, women’s, and children’s clothing collections. Paul Carter, asset director at Peel L&P, said: “We are committed to providing visitors with an extensive range of vibrant new retail options, and high-quality specialist brands that diversify the outlet’s offer. We have already introduced Timberland and NEXT this year, so the signing of PUMA is a continuation of our efforts to keep Gloucester Quays fresh and exciting.” The news follows a number of retail announcements for Gloucester Quays thus year, including the signing of Next and Timberland’s recent opening.

Deals News

Poundland owner posts growth as it continues European roll-out

The parent group of Poundland has reported a strong uptick in revenue during the first half of the year, as it continues its expansion across Western Europe. Revenue at Pepco Group increased by 22.8% in the six months to March 31, reaching €2.8bn (£2.4bn), however pre-tax profit fell by 5.7% to €134m (£115.4m). Like-for-like sales at Pepco and Poundland grew by 15.8% and 4.9% respectively. The group said that it is on track to open at least 550 ‘net’ new stores by the end of the financial year. Pepco ended March with an estate of over 4,100 stores, an increase of 12% year-on-year. This included 24 openings for Poundland, however the discount retailer shuttered 28 sites as part of its long-term plan. Trevor Masters, chief executive of Pepco Group, said: “Our growth strategy in Western Europe is progressing well, reflecting the strong appeal of the Pepco brand to customers across the whole continent. Italy, where we recently opened our 100th store, and Spain”. In May, the Pepco brand opened its first store in Portugal. “We are focused on executing our strategy and remain on track to deliver full year EBITDA growth in line with previous guidance”, Masters added.

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CVC planning £4bn Center Parcs takeover

CVC Capital Partners, the former owner of Formula 1 and the private equity backer of the Six Nations rugby championship is reportedly pursuing a £4bn takeover of Center Parcs. The holiday resort chain was put up for sale by Canadian firm Brookwood in May, with a valuation of between £4bn and £5bn. An investment vehicle managed by CVC is expected to deliver a proposal to purchase Center Parcs’ six UK and Ireland sites ahead of a deadline later this month, Sky News has reported. A number of infrastructure funds, including French firm Antin, are also reportedly in the mix for the takeover of the leisure company. Center Parcs was previously a publicly-owned company, before being taken over by private equity firm Blackstone in 2006 and later sold to Brookfield in 2015, in a deal worth a reported £2.4bn. Blackstone is also rumoured to be considering taking over the company it once owned. A deadline of June 20 is believed to have been set by advisers, with Bank of America, Barclays, and Eastdil Secured having been appointed to manage the sale.

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Retail sales growth slows despite May bank holidays

Multiple bank holidays in May failed to boost retail sales growth, the latest report from the BRC-KPMG Retail Sales Monitor has revealed. UK retail sales increased by 3.9% in May 2023, however this was below the three-month average of 4.7%. Sales growth continued to be higher than in 2022, which saw a decline of 1.1% during May. The increase of 3.9% was also higher than the 12 month average growth of 3.1%. On a like-for-like basis, retail sales grew by 3.1% in May, against a fall of 1.5% in May 2022. This was below the three-month average of 4.6% and above the 12-month average growth of 3.1%. Food sales were boosted by the Coronation weekend, increasing by 9.6%, above the 12-month average growth of 6.9%. non-food sales rose by 0.7%, up on the 12-month average growth of 0.5%. Helen Dickinson OBE, chief executive of the British Retail Consortium, said: “The trio of bank holidays failed to get shoppers spending as sales growth slowed to its lowest level in six months. While food sales got a boost from the Coronation weekend, this was not sustained for the rest of the month. Meanwhile, growth in discretionary spend continued to tumble as the...

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Black Sheep Coffee to debut in Woking

Black Sheep Coffee is set to open its first location in Woking at Victoria Place, as the chain looks to continue its UK expansion. The brand will open in a 1,722 sq ft unit adjacent to Export House, an 86,500 sq ft office space. The coffee operator will join other food and beverage operators at Victoria Place such as GAIL’s, Itsu and the recently opened Burger King. Black Sheep in Woking will offer the brand’s range of coffee, smoothies, and shakes, as well as food such as cakes and pastries. Councillor Will Forster, deputy leader of Woking Borough Council, said: “Black Sheep Coffee is fast becoming an industry-leader, particularly with its recent expansion, so we are hugely proud that they will be coming to Victoria Place in their town debut.” JLL and Nash Bond acted for Victoria Place on the deal.

Deals News

Papa John’s acquires 91 sites in shift away from franchises

Papa John’s has acquired 91 UK sites from a franchisee operator and formed a portfolio of company-owned sites. The pizza chain’s newly-formed portfolio will consist mainly of sites in London and reflects a move away from its traditional business model of letting franchisees run all of its international sites. Papa John’s said the move enables the chain to introduce enhancements to its operating model to improve sales and profitability. Amanda Clark, chief international and development officer for Papa John’s, said: “Owning and operating restaurants will allow Papa John’s to follow a similar model that we’ve created in the US, which enables us to leverage our resources, best practices and scale with franchisees in the UK and worldwide to further their success.” The financial details of the acquisition were not disclosed.

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New plans unveiled for Newcastle hotel and bar

New plans for a hotel, bar, and brasserie in Newcastle City Centre have been submitted. A planning application, lead by Kans and Kandy, looks to renovate and change the use of the building, which is currently used for retail space and offices. If accepted, the proposals would see the ground floor and basement transformed into a bar with the upper floors converted into a hotel. The planning application said: “The aim of the proposals is to ensure the future retention of the property and creating more usable spaces. In our opinion the proposals reflect the historic character of the building and the surrounding area. “This is a sensitive refurbishment and appropriate and sustainable reuse of this vacant building. Internally the building has undergone a lot of change in the past and is now essentially a shell with only the main architectural elements of outer walls. We have also demonstrated with photographic images and plans what our proposal will entail: a quality boutique hotel, brasserie, studios and roof top terrace.” The site at 19-21 Collingwood Street was originally planned to be turned into the Metropolitan House Hotel by the High Street Group, however the company collapsed leaving debts of over £200m.

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Opening date revealed for Co-op Live arena

Manchester’s Co-op Arena has been given a new opening date. Originally expected to have been completed by December, the £365m indoor arena is now expected to open in April 2024. The construction of the 23,500-capacity arena is being led by a joint venture between City Football Group and Oak View Group, and is being built by BAM Construct UK. The arena will have the most floor space of any indoor venue, as well as a low ceiling and tiered seating. The venue will also be home to 32 bars, restaurants, and lounges. Approval for the venue to be constructed was given in 2020 and Co-op has a 15-year naming rights agreement. The arena is expected to host test events in April, with the first act for a paying audience due to be announced over the coming months. A spokesperson for Co-op Live said: “Co-op Live will be opening our doors to fans in April 2024. “It’s huge kudos to BAM, and the dozens of local subcontractors working on the project, that we are well within our original timeframe and on-budget given the unprecedented challenges of the pandemic, supply chain shortages, and an energy crisis.”

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Asda used asset sales to fund EG acquisition

Asda’s £2.28bn takeover of Eg Group’s UK and Ireland business is being funded by the sale of a number of its assets. It was originally believed that the supermarket retailer’s owners, the billionaire Issa brothers, would be providing £450m of funding. However the cash is now expected to come from asset sales, according to The Times. The £450m in equity is believed to come from a £1.7bn sales of 27 Asda warehouses to Blackstone in sale-and-leaseback deal in 2021. Mohsin and Zuber Issa acquired the supermarket giant in 2020. The merger sees Asda acquire an estate of around 350 petrol stations and over 1,000 food-to-go locations. Asda said the acquisition will create combined revenues of nearly £30bn, serving around 21 million customers weekly. Some critics have argued that the deal is being used to shift debt from EG Group as interest rates continue to rise.

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Frasers Group may axe up to 200 jobs

Frasers Group could cut up to 200 jobs at its London and Shirebrook offices as it looks to make the business more efficient and streamlined. The group, which operates brands such as House of Fraser and Sports Direct, has entered a consultation period with the affected staff, Drapers has reported. The move sees a fifth of Frasers Group’s head office staff at risk of losing their jobs. A spokesperson for the group said: “Frasers Group has gone through significant change in the last year, having made a number of strategic acquisitions, and accelerated progress against the elevation strategy. “We are reviewing our team structures to identify efficiencies and streamline processes and we have entered a consultation period with colleagues affected by these changes. The changes will ensure we have the right structure and talent to support continuing profitable growth for Frasers Group.” A busy 2022 for the group saw it take control of Missguided, I saw It First, Amara, and Gieves & Hawkes, amongst other acquisitions.

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ASOS targeted in £1bn takeover

ASOS received a £1bn takeover bid in late December from Turkish fast-fashion retailer Trendyol. The deal, which was reported in The Times, would have seen the online fashion retailer valued at between £10 and £12 a share, a significant increase on its current value of £3.50 per share. Trendyol, which raised $330m (£265m) from Chinese Ecommerce brand Alibaba in 2021, is reportedly working with Morgan Stanley on the bid, however no talks are currently underway. It is believed that ASOS’s largest shareholder, Anders Holch Povlsen, was approached however his investment vehicle declined to comment on “rumours and speculation”. ASOS was recently kicked out of the FTSE 250 after is share values fell by 93% over the last two years. In May, the retailer raised £75m of funding as it looks to return to sustained profitability. ASOS recorded an adjusted loss before tax of £87.4m in the six months to February 28 2023.

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Pandora upsizes in Glasgow