Posts from August 2023

Lidl has submitted proposals to create a new store in Worksop along with almost 100 residential properties. The retailer’s plans include the creation of a 20,500 sq ft supermarket alongside up to 89 homes on a brownfield site adjacent to Worksop Train Station. The site has previously been granted planning consent for a retail development after Tesco lodged plans to build a food store in 2011, however since then other applications have been refused. Bassetlaw District Council, on behalf of Lidl, said: “Lidl’s revised proposal picks up many of the points raised by the council in the refusal and demonstrates their continued commitment to the site and Worksop. “Lidl’s proposal will bring the site back into productive use, and do so with a scheme which greatly enhances the area, meeting both retail and residential needs.”

News

Vacant Liverpool bank set for restaurant conversion

A former Bank of England building in Liverpool which has been vacant since the 1990s could be converted into a restaurant and bar under new plans. Property development firm JSM Group has submitted an application to change the use of the Grade I-listed building on 31 Castle Street. Under the proposals, the ground floor would be used as a restaurant and bar with kitchens, while the first floor would accommodate storage, toilets, and a staff room. The rear enclosed yard is also set to be transformed into restaurant and bar space, while the second and third floor are set to remain unused. Liverpool Planning Committee will assess the application on 22 August with a recommendation for approval. Other properties in JSM Group’s portfolio include leisure venues such as Black Rabbit, Level Nightclub, The Old Bank and Sgt. Peppers.

News

Søstrene Grene to make Surrey debut at Victoria Place

Søstrene Grene is set to open its first store in Surrey at Woking’s Victoria Place as it continues its UK expansion. Taking a 4,673 sq ft unit, the Danish homeware retailer’s store will sit on Henry Plaza between M&S and Moss Bros. The store will be designed with Søstrene Grene’s Scandinavian roots in mind, with wood accents and curated lighting designed to create a neutral backdrop for a range of products. Customers will be able to purchase products including furniture, home accessories, soft furnishings, art supplies, stationery, and children’s toys and gifts. Norma Jacob and Richard Power, UK joint venture partners at Søstrene Grene, said: “Søstrene Grene has been undergoing a wide expansion across the UK, particularly across the south of England, so we are excited to be able to announce that we will be opening in Woking later this year. Victoria Place is a brilliant location in the heart of Woking and we’re looking forward to introducing our brand to a new audience, marking our first store launch in the region.” Søstrene Grene’s signing follows a number of openings at Victoria Place this year, including independent lifestyle boutique, Lark London, which opened its 1,558 sq ft space on Commercial...

Deals News

Realty targeting further retail park acquisitions

American real estate group Realty is in advanced discussions with Ediston Property Investment Company regarding a possible purchase of its property estate. Ediston confirmed it is in talks with RI UK 1 Limited, a subsidiary of Realty, over the sale of its retail park estate. The property company currently invests in 11 retail parks in Stirling, Haddington, Sunderland, Widnes, Barnsley, Prestatyn, Hull, Wrexham, Glasgow, Daventry, and Rhyl. Ediston says its portfolio has a value of £208.4m with a contracted rental income of £16.5m. However, Ediston said there can be “no certainty at this time” that a sale will take place, and that no final price or terms have been agreed. It was recently reported that Florida-based Realty is eyeing the purchase of Inverness Shopping Park, the Kingston Centre in Milton Keynes, and Serpentine Green in Peterborough from British Land. Also included in the deal is a portfolio of six data centres and offices based in London, which are currently leased to Vodafone. Realty entered the UK property market in 2019 when it entered into a joint partnership with British Land to take ownership of 12 Sainsbury’s supermarkets, in a deal worth £429m. It now has a British portfolio worth over £2bn, having invested in a number of supermarkets, DIY...

News

Chick-fil-A eyes UK return three years after exit

20th August 2023

Chick-fil-A is looking to make its return to the UK, just three years after the chain’s controversial early exit. The American fried chicken restaurant chain is understood to have retained Newmark to aid its expansion in the UK, a market which Chick-fil-A has labelled a “strategic priority”. A requirement brochure said the chain is seeking high street properties ranging between 2,000 and 5,000 sq ft in size, and shopping centre or food court units with a minimum size of 1,000 sq ft. The chain is also eyeing drive-through sites between 3,000 and 5,000 sq ft in size. Chick-fil-A, which operates over 2,800 restaurants in North America, is planning to invest $1bn (£785m) into opening European and Asian restaurants, with the target of operating in five international markets by 2030. The restaurant chain’s last venture into the UK was met with protests over its past donations to anti-LGBTQ political groups, leading to the closure of its two sites in Reading and the Macdonald Aviemore resort in the Scottish Highlands just six months after opening. Chick-fil-A has since said it no longer donates to political causes.

News Requirements

GMB: “Grounds for hope” at Wilko as interested parties circle

There is “genuine grounds for hope” at Wilko as discussions continue with a number of interested parties, the GMB union has said. Members of the union met with Wilko’s administrators PwC as part of the consultation process to discuss the future of the ailing retailer. GMB National Secretary Andy Prendergast confirmed “expressions of interest from organisations who are considering taking over at least some parts of the business”. “These are still at an early stage, but means there are genuine grounds for hope”, he added. GMB also confirmed that during the administration process staff will continue to be paid and kept on while stores will remain open with new stock deliveries coming in. Wilko collapsed into administration earlier this month, putting the futures of 12,000 jobs and over 400 stores at risk. Earlier this week, it was reported that PwC had given interested parties until Wednesday 16 July to submit any initial offers. The family-owned value retailer had been working with PwC for many months in search of new investment, and had been looking to finalise a Company Voluntary Agreement to allow it to cut its rents at a number of its stores. Last week, Wilko chef executive Mark Jackson said the...

News

July rain dampens retail sales

Retail sales volumes fell by 1.2% in July, dampened by an uncharacteristically wet month, according to the Office for National Statistics. This followed a increase of 0.6% in June, which had seen distinctly better weather. Food stores sales volumes decreased by 2.6%, as supermarkets reported that wet weather reduced clothing sales. Food sales also fell, as the cost-of-living crisis and higher prices continue to squeeze budgets. Non-food stores sales volumes fell by 1.7% in July, following an increase of 0.6% in June. Retailers again reported that the fall was due to poor weather reducing footfall. Many shoppers deterred by the rain opted to shop online, with over a quarter (27.4%) of retail sales taking place online in July, compared to 26% in June. Heather Bovill, ONS deputy director for surveys and economic indicators, said: “Retail sales fell sharply in July as poor weather impacted most sectors, “It was a particularly bad month for supermarkets as the summer washout combined with the increased cost of living meant sluggish sales for both clothing and food. Department store and household goods sales also dropped significantly.”

News

Costco looks to ramp up UK expansion with 14 new stores

Costco is looking to open 14 new stores over the next two years as part of its wider expansion plans. The wholesale retailer is reportedly eyeing openings in Brighton, Cambridge, Chelmsford, Colchester, Exeter, south Glasgow, Maidstone, southeast London, Portsmouth, Bournemouth, Preston, Wolverhampton, southwest Birmingham, and Oxford, according to The Sun. The retailer will attempt to launch its stores “as soon as possible”, however some openings could be delayed if Costco cannot secure the sites quickly enough. The proposed stores, along with a new site opening soon in Gloucester, would bring Costco’s UK estate to 44 locations. Costco is working with property firm Chase Commercial to find suitable locations. According to a brochure, the retailer is seeking sites of 6-12 acres, with a 150,000 sq ft building and at least 650 car parking spaces. In the year to August 2022, Costco’s UK division saw pre-tax profits increase year-on-year by 44% to £120.6m.

News

Mercure Glasgow City Hotel acquired for £7.5m

S Hotels & Resorts has purchased the freehold of Mercure Glasgow City Hotel from Alternative Income REIT for £7.5m. The 91-room hotel on Ingram Street features a restaurant and bar, meeting and events facilities, and a number of other amenities. As the current operator of the hotel, S Hotels & Resorts is now able to undertake a significant refurbishment of the property. Steven Fyfe, director in the hotel capital market teams at Savills, which advised S Hotels & Resorts, said: “The Scottish hotel market has already seen a threefold increase in investment volumes so far in 2023, with transactions totalling £165 million. This latest acquisition is proof that the sector remains resilient despite a decline in activity elsewhere in the UK. The purchase of the Mercure Glasgow provided a fantastic opportunity for S Hotels & Resorts to take ownership of the site and subsequently take advantage of Scotland’s booming tourism.”

Deals

Everyman cinemas has “well-developed” 2024 pipeline

Upmarket cinema chain Everyman has a “well-developed” pipeline of openings for 2024, as it continues to expand within a struggling market. During the first half of 2023, Everyman had opened new cinemas in Northallerton, Plymouth, and Salisbury, bringing its total estate to 41 venues. It is also set to open a two-screen cinema in Marlow in October. This comes as Everyman releases an update for the first half of the year, during which trading was “in line with expectations”. Group revenue for the 26 weeks ending 29 June reached £38.3m, which was slightly down against the same period in 2022 (£40.7m). Everyman said that the first half of 2022 was relatively strong, while the majority of this year’s key releases fall in the second half. Earnings (ebitda) also decreased during the period from £7.5m to £5.8m. Everyman’s trading during the second half of the year has got off to a good start, with the ‘Barbenheimer’ phenomenon delivering record admissions in the final week of July while group revenue for the month reached £10.6m (2022: £7.1m). The chain is also looking forward to a number of releases in the second half of the year including Dune: Part Two, Wonka, The Hunger...

News

GPE snaps up Soho Square Estate

Great Portland Estates (GPE) has acquired King Sloane Properties from Belgravia & Chelsea Property Services for £70m. The cash consideration is based on the value of King Sloane Properties’ estate, with the group owning the freehold interests at 16/19 Soho Square, 29/43 Oxford Street and 7 Falconberg Mews, W1. The buildings comprise 57,456 sq ft of mixed-use space and are currently let for around £1.48m per year. Planning consent to demolish the existing buildings and create around 90,000 sq ft of Grade A office and prime retail space has already been granted. The estate sits in the heart of the West End at the eastern end of Oxford Street, backing onto Soho Square, and is just 100 metres from the new Tottenham Court Road Elizabeth Line Station. GPE said it intends to re-work the buildings’ designs to improve the quality of both the office and retail space. It aims to enhance the site’s attractiveness to potential customers in a “materially undersupplied” market. The group’s plans involve the creation of a “best-in-class” headquarters office building on Soho Square, along with flagship retail space fronting onto Oxford Street, arranged over basement, lower ground, ground and eight upper floors, with multiple private and...

News

Soho House to open first Scottish club in Glasgow

Soho House is set to open its first Scottish private members club in Glasgow city centre next year. The four-storey club will have a number of rooms for members to eat, drink and socialise, as well as a roof terrace. Taking residence in the former Glasgow Parish Council Chambers and Collectors Hall, Soho House’s Glasgow venue forms part of the wider Love Loan urban regeneration programme taking place in the city. Over the last year, Soho House has built a community in Glasgow through its ‘Cities Without Houses’ membership, which is designed for creatives who travel but do not have a physical Soho House in their city. Soho House & Co chief executive Andrew Carnie said: “From its renowned School of Art to its rich architectural heritage and the city’s lively music scene, Glasgow has a creative energy that makes it an exciting choice for our first Scottish location.” The worldwide club operator’s UK reach currently extends to seven sites in London, and two locations in Oxfordshire and Somerset. Earlier this week, it was reported that despite construction delays at Soho House’s Manchester opening, membership applications are still ahead of expectations. The members club in the old Granada Studios development...

News

Black Sheep Coffee makes Welsh debut

Black Sheep Coffee has made its Welsh debut with the opening of a shop in Cardiff. Taking a former Paddy Power store in Southgate House on Wood Street, Black Sheep Coffee’s arrival in Cardiff marks a continuation of the chain’s expansion. The coffee brand recently opened sites at High Wycombe’s Eden Shopping Centre and The Sidings at London Waterloo Station, the 70th opening for the chain. Black Sheep Coffee has an extensive pipeline of UK sites lined up, with openings confirmed in London, Edinburgh, Manchester, Aberdeen, Warrington, Colchester, and at Luton Airport. The chain is also planning to expand into the United States, aiming to make its debut in Texas before the end of the year.

Deals

Empire’s former cinema estate heads to market

The estate of collapsed cinema chain Empire has been brought to market. CBRE has been appointed by Empire’s administrators BDO to find buyers for eight cinemas, following the chain’s collapse last month. The cinemas in Birmingham, Clydebank, High Wycombe, Ipswich, Sutton, Sutton Coldfield, Bath, and Cheltenham have continued to trade while buyers are sought. The sites are available with a mixture of tenures including freeholds, long leaseholds and occupational leaseholds. Empire’s head office in Leicester Square will be also offered as part of the sale. Toby Hall, senior director, operational real estate at CBRE, said the firm had received “significant interest from a wide pool of prospective buyers”. Recent data from CACI found that cinema visits have continued to fall since the Pandemic. Empire’s screens in Bishop’s Stortford, Catterick Garrison, Sunderland, Swindon, Walthamstow, and Wigan have already closed. Founded in 2005, Empire was created following the mergers of Odeon and UCI, and Cineworld and UGC. The Office of Fair Trading ruled that both of the newly-formed groups should lose a number of their cinemas, creating a gap in the market for Empire to fill. Before the closures, the chain operated 129 screens nationwide.

News

Knight Frank appoints CEO to investment management team

Knight Frank Investment Management (IM) has appointed Matthew McDonald as chief executive, replacing the outgoing Kevin Aitchison who is departing for Savills. McDonald has been a member of the firm’s board since 2015 and was responsible for the business’s product division. He has mainly focused on Knight Frank IM’s Long Income Property Unit Trust, an investment vehicle with a net asset value of around £900m. McDonald has previously held roles at Dorrington Properties, ING Real Estate Investment Management, and CBRE Investment Management. His appointment follows last week’s announcement that Kevin Aitchison will move to Savills to take on the newly-created role of managing director of equity investments for UK & Europe. His arrival at Savills was announced alongside the retirement of deputy chief executive and global chief investment officer Kiran Patel, who was with Savills for 12 years. Knight Frank IM manages assets worth over £3.4bn.

News

PSG adds Oxford Street to list of summer signings

French footballing giants Paris Saint-Germain (PSG) have added a London store to their list of summer signings. Set to open in September, the Ligue 1 champions will take up residence in a 4,911 sq ft unit at 192-194 Oxford Street. The unit, which sits next door to footwear retailer Office, was previously home to Russel & Bromley and then an American candy store. PSG are set to be the first overseas football club to open a physical store in the UK. Sam Foyle, co-head of prime global retail at Savills, which represented the landlord, said on LinkedIn: “For PSG to choose Oxford Street for its global flagship store, continues the positive story and momentum that is building on Oxford Street. It is one of a number of new international entrants we are working with that are due to open on Oxford Street soon.” In May, English champions and treble winners Manchester City opened a new store at Manchester Arndale Shopping Centre, offering merchandise such as team kits and memorabilia.

Deals News

Pret a Manger to make Northern Ireland debut

Pret a Manger is set to make its debut in Northern Ireland with an opening in Belfast City Centre. Launching later this year, the shop will be operated by Pret’s long-standing franchisee, Carebrook Partnership. The coffee shop in Donegall Square West will be Pret a Manger’s fourth on the island of Ireland, having already opened three in Dublin over the last 18 months. The chain has plans to open a further 20 shops across the island over the next decade. Clare Clough, UK and Ireland managing director at Pret A Manger, said: “We’re delighted to be opening Pret’s first-ever shop in Northern Ireland as part of our ambitious plans to bring Pret to more people. We’ve long heard that Belfast locals and visitors would love to have a Pret, so we can’t wait to welcome them to our new shop right in the heart of the city with our longstanding franchise partner Carebrook, who has had much success operating Pret shops in the UK and on the island of Ireland”. Pret operates in 15 markets across three continents, and expects to have over 700 shops globally by the end of the year.

Deals

DTZ Investors checks out London supermarket deal

DTZ Investors has acquired a Sainsbury’s supermarket in London from Lothbury for £56.25m. The 67,426 sq ft store in Islington has been continuously occupied since 1984, and comprises 35,000 sq ft of sales area along with a 131-space car park. Sainsbury’s has recently signed a new 20-year reversionary lease bringing its expiry to March 2044. Following this, the supermarket is understood to be investing a considerable amount into the store, which sits adjacent to the Angel Shopping Centre on Liverpool Road. Ben Haller, director at DTZ Investors: “This asset is the latest in our investment programme through 2023. There are opportunities amongst the wider market challenges with this core asset offering long and strong income with the potential for significant capital enhancement in the future”. Freddie MacColl, partner at Knight Frank, which acted for DTZ Investors, added: “We are delighted to have advised DTZ Investors on this core supermarket with rare and exceptional characteristics. We have now acted for DTZ Investors on two deals this year where they’ve performed on a 10-working day timeframe and at the agreed price on both occasions.” Savills acted for Lothbury.

Deals News

Dragons’ Den’s Steven Bartlett joins expanding health and wellness brand