Posts from August 2023

Doubts have been cast over the future of Pizza Hut UK as the dine-in restaurant chain battles with a debt crisis. The operator of Pizza Hut UK, Heart with Smart, revealed that “unprecedented inflationary pressures” have meant that the chain is anticipating a potential breach of its covenants. The business is now looking to refinance some £31m of its £73m debt pile. Pizza Hut UK’s auditors, PwC, also warned in its annual accounts that there is a ‘material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern’, according to The Sunday Times. However, Heart with Smart says it sees “no risk of closure” of its 150 UK restaurants, saying: “Discussions with lenders are progressing well and Heart with Smart is confident in (debt provider) Pricoa’s support.” Heart with Smart added that it does not expect to breach its covenants, unless guest demand takes a significant downturn during the summer and reaches a low point in October. It added that it has an “excellent” relationship with its lenders and any potential breach is likely to be waived. Pizza Hut UK is the dine-in arm of the restaurant giant’s UK business. Heart with Smart acquired...

News

Sticky Mango to open third London site at Islington Square

Sticky Mango is set to open its third site in London at Cain Interntational’s mixed-use destination Islington Square. The South-East Asian restaurant concept will be taking a 2,919 sq ft unit located next to Megan’s, Third Space, and The King’s Head Theatre. Opening in September, Sticky Mango’s arrival at Islington Square follows its recent launch at Tower Bridge. The restaurant will be headed up by chef patron Peter Lloyd and serve a range of signature dishes. Sticky Mango will join the destination’s line-up of independent restaurants including Omnom and Bewliehill. Robert van Vliet, vice president for asset management at Cain International, said: “With a strong leisure, retail, and F&B line-up, we’re delighted to add Sticky Mango to the mix. This exciting brand’s decision to open only its third restaurant here demonstrates Islington Square’s status as one of London’s most vibrant eat, drink, and play destinations.” Ted Schama, joint managing partner at Shelley Sandzer, which acted for Cain International, added: “Islington Square presents a modern and flexible mixed-use space that everyone can enjoy, rich in independent retail and F&B. Sticky Mango delivers a unique and distinctive offer and will serve the strong catchment of residents and office workers in the area.”

Deals

Westquay Centre welcomes two new F&B outlets

Wingstop and Bagel Factory are set to open new outlets at Hammerson’s Westquay shopping centre in Southampton. Signing for a 3,730 sq ft unit on a 15-year lease, Wingstop’s new outlet will be its 33rd site in the UK. Bagel Factory will be taking a 770 sq ft unit on a 10-year lease, and will join a number of other food and beverage offerings at the scheme including Tap and Tandoor, L’Osteria, Wagamama and The Real Greek. Victoria Broadhead of Bruce Gillingham Pollard, which acted for Hammerson, said: “A vibrant and fresh food & drink offer is an intrinsic part of Westquay and we are constantly looking for opportunities to bring in concepts that complement the shopping and leisure offer across this very successful centre”. Antonio Ghirarduzzi advised Bagel Factory whilst Braiser Freeth acted for Wingstop.

Deals News

“Signs of optimism” as consumer confidence bounces back in August

GfK’s Consumer Confidence Index bounced back in August, after a downturn in July ended a run of six consecutive months of increasing scores. The overall index score increased by five points to -25, with all measures increasing against July. This was 19 points ahead of August last year, which recorded a score of -44. The long-standing index is measured in five categories and aims to provide context on the general consumer sentiment regarding the economy. The index score for opinions on personal financial situation over the last 12 months rose by five points to -25, while the score for personal financial situation for the next 12 months increased four points to -3. The score for consumer opinions on the general economic situation over the last 12 months improved by six points to -52, whilst the index measuring feelings about the next 12 months rose three points to -30. The major purchase index, which measures consumer likelihood to make larger, discretionary purchases, also increased, recording a jump of eight points to -24. The savings index, which does not contribute to the overall score, was up by one point for the second time in as many months to 27. This may be...

News

LAP marks down value of Sheffield shopping centre

28th August 2023

Property management firm London & Associated Properties (LAP) has written down the value of a Sheffield shopping centre by £2.1m. LAP had instructed agents to find a buyer for Orchard Square Shopping Centre before September 2023, but declared that no sales proceeds would be sufficient to “return a surplus to the group”. It has now marked down its valuation of the scheme from £14.75m to £12.65m. LAP said this loss was the maximum it can incur. The devaluation comes “despite strong operational performance” at Orchard Square, which had an operating income of £1.7m per year by the end of June, unchanged from December. The scheme recently welcomed three “significant” lettings, as LAP looks to reposition the shopping centre’s focus towards the food and beverage market. A number of upgrades to the centre’s public areas have also been undertaken with the support of Sheffield Council, including new paving, awnings for tenants, and a waterproof canopy. LAP said it was a “disappointing outcome for a property that had performed well over [its] 24 year ownership”. This comes as the firm released its results for the first half of the year, ending 30 June. During the period, the value of LAP’s assets declined...

News

Capital & Regional raises £25m for Edinburgh shopping centre purchase

Capital & Regional has raised £25m from shareholders to help fund its purchase of The Gyle Shopping Centre in Edinburgh. The real estate investment trust (REIT) purchased the scheme for a total consideration of £40m, with the remainder of the transaction financed through existing funds and a new debt facility of £16m. Of the £25m fundraising, 12.6% was supplied by minority shareholders, whilst the company’s largest shareholder Growthpoint provided the remainder of the funding. Following the admission of the open offer shares, Growthpoint now has a 67.64% holding in the REIT. Spanning 415,000 sq ft, The Gyle comprises 88 retail units and is anchored by Morrisons supermarket and a Marks & Spencer store. The scheme has 2,800 free car parking spaces and is well connected via the tram system with good links to Edinburgh Airport. Capital & Regional said The Gyle’s retail space is let at approximately £6.8 million of annual gross rent and around £5.77 million of net rental income, with strong rent collection and a headline occupancy of 94%. At the time of the acquisition, Lawrence Hutchings, chief executive of Capital & Regional, said: “The Gyle Shopping Centre presents us with a number of asset management opportunities including...

News

Clintons to close a fifth of its stores to avoid folding

Card retailer Clintons is set to close around a fifth of its stores as it looks to avoid insolvency. An insolvency court gave the go-ahead for the for a restructuring plan which will see Clintons shut the doors to 38 of its 179 stores due to the financial pressures it is currently under. Under the proposal, Clintons will pay only 8.6 pence on the dollar for the money it owes landlords and local councils for its 38 unprofitable stores. The card retailer’s owners, Jeff and Zev Weiss, will provide a revolving loan facility to help keep the business afloat over the next 12 months. As the retailer’s main creditor, they have also agreed to reduce the amount of money they are owed by Clintons from £7.7m to £5.3m – the amount they would have received had the business fallen into collapse. In return, they will receive a larger amount of shares. Under the restructuring plan, the Weisses would only continue funding the business if it adopted a business plan which showed signs of greater profitability. With the closures of the loss-making shops it is hoped this may be achieved. However, the business could be at risk of insolvency again when the loan expires in...

News

M&S set to make FTSE 100 comeback after turnaround

Marks & Spencer is set to become one of the top 100 companies on the London Stock Exchange after its shares rose to a 19-month high. M&S released its trading update on Tuesday, in which the retailer said it expects to deliver increased profits this year, despite originally anticipating a decline. The retailer posted an increase in food sales of 11% for the 19 weeks to 12 August, while clothing and home sales also increased by 6%. M&S’s shares increased by 9% after it released its trading update, bringing its market capitalisation to over £4.3bn. This would be enough to put it back into the FTSE 100 Index. The retailer’s shares have increased in value by over 70% since the beginning of 2023. Clive Black, Shore Capital research director, said: “If the legs keep whirling in the right direction, then more material appreciation could follow, along with a return to the FTSE 100.” It would be the first time the retailer has joined the FTSE 100 in four years after it closed hundreds of stores in 2019.

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How to open a hair salon

So, you want to open a hair salon? Maybe you’ve just qualified as a hairdresser, or perhaps you’ve been working under another brand and want to go out on your own? Either way, having your own space allows your business to reach its full potential. Being prepared is always a good thing, so here are our top tips for how to open a salon: Choose a great location Salons are versatile in that they can pop up in a variety of places: You’ll find them on high streets, in shopping centres, and on suburban parades. Ideally, you’ll want to pick somewhere that’s convenient and accessible, going too far out-of-town means a trip to your salon becomes a journey of its own, and with time-strapped customers, this isn’t a good thing. Once you’ve chosen a location, you’ll need a unit suitable for your business. Size is a very important factor to consider, and how much space you need will be dependent on your business itself. You need enough room for storage, and space for a chair and sink for customers. You’ll want enough space around the chair too, so you and other people can move around freely. Salons also need a...

Advice

Subway agrees £7.1bn sale to private equity firm

Subway is set to be purchased by a private equity firm, bringing an end to six decades of family ownership. US-based firm Roark Capital has agreed to acquire the restaurant chain for over $9bn (£7.1bn), according to Reuters. Roark Capital already controls the US restaurant group Inspire Brands, the owner of Jimmy John’s, Arby’s, Baskin-Robbins and Buffalo Wild Wings. In February, it was reported that Subway had appointed JP Morgan to advise on a sale of the company, which at the time was valued at $10bn (£8.2bn). A number of firms had emerged as potential bidders, including an American joint venture, an arm of banking giant Goldman Sachs, and the billionaire Issa Brothers, who own Asda and petrol forecourt business EG Group. Subway, which trades from over 2,000 sites in the UK, was founded in Connecticut in 1965 and has remained family-owned ever since. Its chief executive John Chidsey, said: “This transaction reflects Subway’s long-term growth potential, and the substantial value of our brand and our franchisees around the world”. The chain added that it had a “bright future” with the private equity firm.

News

Ikea Oxford Street launch pushed back to autumn 2024

The opening of Ikea’s flagship store on Oxford Street has been delayed until autumn of next year. Ikea said this was due to “ensuring optimal preservation” of the Grade II-listed building, which was once home to Topshop. The furniture retailer’s London store is currently undergoing a huge refurbishment, with existing gas-fired boilers being replaced with energy-efficient heat pumps with the aim of powering the building with renewable energy. Peter van der Poel, managing director of Ikea’s investment arm Ingka Investments, which is refurbishing the building, said: “When refurbishing this over one hundred-year-old historic landmark, it’s important for us as an investor to treat the building with care and to preserve its characteristics and atmosphere. At the same time, we want to upgrade it to today’s standards with the best possible sustainability credentials. To ensure all of this, the extensive refurbishment will take more time than initially anticipated.” Ingka Investments purchased the building in 2021 for £387m. Ikea will occupy 82,000 sq ft of retail space within the building whilst four floors will be reserved for office space. The store was previously scheduled to open in autumn of this year. On Wednesday, the retailer unveiled a 128ft by 62ft blue ‘Frakta’...

News

HMV owner in talks to buy Wilko branches

The owner of HMV is in discussions to rescue some Wilko stores following the collapse of the family-owned discount retailer. However, Canadian businessman Doug Putman’s bid is unlikely to meet legal requirements, according to BBC News. Time is running out for the tycoon, with Wilko’s administrators PwC setting a deadline for final offers of Friday evening. It is understood that if Putman’s offer goes through, the majority of Wilko’s stores, depots, and head offices are still expected to close. This comes after it it was revealed that the majority of Wilko’s stores are set to shut their doors “within weeks”, after a bid for retailer fell through. PwC told the GMB Union on Wednesday that there was “no longer any prospect that the majority of the business will be saved”. The union said this means that redundancies for staff in stores and call centres would begin during the coming week. A number of other retailers are also looking to snap up parts of Wilko’s estate, including Poundland owner Pepco, B&M, and The Original Factory Shop. Doug Putman’s firm, Sunrise Records, purchased HMV out of administration in 2019 saving around 100 stores. He has been credited with turning around the fortunes of the...

News

Vinoteca rescued in £305,000 pre-pack deal

Vinoteca has been acquired out of administration in a pre-pack deal worth £305,000. The wine bar concept’s business and assets have been sold to a subsidiary of private investment firm Breal Group. Vinoteca, which had previously filed for protection from its creditors, had been advised by Interpath Advisory after its trading was hampered by the Pandemic and reduced customer levels. Founded in 2005, Vinoteca currently operates five sites in London – at Borough Yards, Chiswick, Farringdon, Kings Cross, and Bloomberg Arcade. Its first site outside the capital, in Birmingham’s Paradise Estate, closed in May of this year after less than a year of trading. Three interested parties had submitted final bids for a takeover of Vinoteca, each offering pre-pack deals. One offer was for all five of the trading sites, while the other bids were for four sites and two sites respectively. After one bidder withdrew from the process, Breal’s offer was considered to provide the best outcome for shareholders of the remaining two. As part of the deal, four of Vinoteca’s shareholders and senior management scheme will be offered 15% equity in the new venture. Earlier this year, Breal Group purchased Yorkshire-based Black Sheep Brewery along with its shops...

News

Plans submitted for railway arch nightclub at Fenchurch St. Station

The Arch Company has submitted plans for a nightclub and music venue in a pair of disused railway arches underneath Fenchurch Street Railway Station. Documents delivered to the City of London Corporation by planning consultancy Rapleys look to secure a change of use for Arches 9A and 9B along with a number of refurbishments. Spanning two storeys, the site’s 1,776 sq ft ground floor was previously occupied by a Ladbrokes betting shop, whilst the 3,832 sq ft upper floor has been mothballed and is in a state of disrepair. The units face on to Crutched Friars, a street home to the Munich Cricket Club Bierkeller and the Cheshire Cheese pubs, both also in former railway arches. The site’s landlord is currently undertaking works at the property, and the end user is not known as of yet. As a result, Rapleys said the space created has been kept as flexible as possible. Abraham Laker, associate partner at Rapleys, said the development will “revitalise” the area and “contribute to flexible and adaptable employment floorspace” within the location. Having acquired Network Rail’s former commercial estate business in 2019, The Arch Company is now one of the largest providers of space to small and...

News

Manchester City Council green lights Neptune Mill redevelopment

Plans to redevelop Neptune Mill in Manchester’s Piccadilly East neighbourhood have been given the go-ahead by councillors. The project will see the 22,000 sq ft red brick building converted to accommodate four floors of office space as well as a commercial area on the ground floor. Developer Capital & Centric is looking for operators to take spaces within the ground floor which complement the workspace above, such as a coffee bar, deli or general store. The development will also see the creation of a social hub alongside the commercial space. Work could now begin on the Chapeltown Street development by the end of the year, with the first workspaces expected to be available by late 2024. One of the office floors will be reserved for Capital & Centric’s expanding team. The site is located a walking distance from the proposed new HS2 terminal, and so may prove an attractive destination for businesses. Prospective tenants will be able to apply for space in early 2024, with expressions of interest open now. Tom Wilmot, managing director of Capital & Centric, said: “As the city expands, enterprises are always on the hunt for the next stunning workspace that will inspire creativity and foster...

News

Thackeray unveils £100m Howells building redevelopment in Cardiff

Developer Thackeray has released new images which reveal how the retail element of the £100m redevelopment of Cardiff’s historic Howells building will look. The retail aspect of the redeveloped building is to be known as Hayes @ Howells, with 15,000 sq ft of space available for a high-end tenant. The building was previously solely-occupied by House of Fraser, before it left the premises earlier this year. Thackeray has appointed local advisory firm EJ Hales alongside CBRE to market the property. Earlier this month, the property development company revealed plans for the site’s former Baptist church, which could be transformed into a food and beverage or leisure destination. Also at the scheme will be 40,000 sq ft of restaurant and leisure space along St Mary Street, as well as 25,000 sq ft of grade A office space. There are also proposals for 25,000 sq ft of basement leisure space next to the chapel site, with the aim of attracting bar and restaurant operators. Nearby, there are further plans for 62 studio apartments and 40,000 sq ft of office space. Thackeray Group acquired the site out of receivership last year.

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JD Wetherspoon to open two new pubs including second at Heathrow

JD Wetherspoon is set to open its second pub at Heathrow Airport along with a new location in Euston. The new Heathrow pub will open its doors on 2 October at the former Carluccio’s site at the airport’s Terminal 4. As well as becoming the chain’s second Heathrow location, it will also be JD Wetherspoon’s eight UK airport site. Named after the first civil airliner to land at the airport, The Star Light will accommodate around 140 customers. The group, which has operated at Heathrow since 1991, said it is spending around £500,000 on the pub. JD Wetherspoon is also set to commence work on its Euston pub in September. The group was granted a premises license by Camden Council last month for the former Sophisticates site on Eversholt Street. Taking the name of the first explorer to circumnavigate Australia, The Captain Flinders is expected to provide around 60 jobs. Currently there is no opening date for the Euston pub. Etch acted on the deal.

Deals

Ashby Capital refinances two retail parks in £50m deal

Property investment company Ashby Capital has completed £50m of refinancing for two retail parks in a deal with its existing lender Deutsch Hypo. The three-year loan includes a capital expenditure facility and is secured against the fully-let Morfa Shopping Park and Westside Retail Park. Morfa Shopping Park in Swansea was purchased from The Crown Estate in 2015, and supports 345,000 sq ft of retail, leisure, and parking space. Tenants at the scheme include Argos, River Island, and Currys. Westside Retail Park in Guisely, north of Leeds, was acquired in 2019 from British Land. The 120,000 sq ft park hosts tenants including TK Maxx, Sports Direct, and Halfords. Charles-Etienne Lawrence, investment director at Ashby Capital, said: “This new loan facility is testament to the strength of our retail park portfolio, which is fully occupied and seeing steady rental growth. This, combined with our prudent approach to leverage made it possible to complete this successful refinancing in the midst of challenging capital markets conditions. “This three-year facility will allow us to work through the next stage of the assets’ lifecycle, and we look forward to continuing to our close partnership with Deutsche Hypo.”

News

John Lewis under fire from campaigners over Ealing residential plans

The John Lewis Partnership (JLP) has faced backlash from campaigners over its plans to build a multi-storey residential scheme in Ealing. The Stop the Towers (STT) campaign said that newly-submitted plans for buildings up to 20-storeys high completely ignore local plan height limits. Ealing Council’s current planning guidance for the site, which is currently home to a Waitrose supermarket, states a maximum height of 7-13 storeys. The development is part of JLP’s wider £500m joint venture with global investment company abrdn to deliver around 1,000 new homes. The group has been criticised by STT for its timing in regards to the application, which was submitted on 4 August, as the window for public comments closes at the end of the month during the peak summer holiday period. The campaign said that despite JLP announcing that it had submitted its plans on 30 June, they did not appear on the council’s website for another 40 days. STT also said that with JLP’s brochure only reaching residents on 19 August, this left locals with just over 10 days to object. The campaign questioned whether it was a “deliberate attempt by JLP to avoid public objections”. However, JLP said residents have until determination...

News

Majority of Wilko stores to close as rivals eye estate