Posts from September 2023

M Core continues acquisition drive with Merthyr Tydfil purchase

26th September 2023

Commercial property and investment company Sheet Anchor, part of M Core, has acquired a town centre parade in Merthyr Tydfil, South Wales. The purchase of Beacons Place from an undisclosed vendor represents the latest transaction in M Core’s investment programme, in which it has spent over £150m on retail sites this year. The 28,858 sq ft scheme is currently fully let and comprises 13 units, with tenants such as Select, Greggs, and Clarks, and acts as the main link between the high street, Tesco Extra, and the railway station. James Buchanan, group managing director of LCP, also part of M Core and which has been appointed to manage the centre, said: “Beacons Place is located in the heart of Merthyr Tydfil town centre and it already enjoys high footfall and a strong tenant line up, more than half of whom are national brands. We’re looking forward to meeting the tenants and implementing our hands-on asset management strategy to ensure the centre continues to thrive.” Over the last 12 months, M Core has invested a total of over £165m into 25 retail centres. Major acquisitions it has made include Ocean Plaza, Southport; Central 12, Southport; and Weavers Walk, Kidderminster. M Core...

Deals News

David Lloyd Clubs revamp leads Fulham Broadway investment

26th September 2023

David Lloyd Clubs is set to open a £6.5m revamped venue at Fulham Broadway, following a significant investment by CBRE IM. The health club group will open a transformed two-storey, 38,000 sq ft space in the first quarter of 2024, featuring a new gym, group class studios, a kids area, a refurbished pool, and a spa. A new clubroom and business lounge will also be created for members to relax and socialise. This comes as part of a wider investment into Fulham Broadway, with the recent opening of the 7,700 sq ft Fulham Works flexible workspace. Fulham Works, which is operated by Spacemade, launched earlier this year. The workspace makes use of a former JD Wetherspoon pub and looks to complement the existing retail and leisure offering. Other investments in the scheme include an updated environmental vision, with a large-scale indoor wall, new lighting, and wooden cladding all having been installed. More soft seating and real-time digital wayfinding have been incorporated to enhance the customer experience, whilst Fulham Broadway’s brand identity has been given a refresh. Louisa Butters, head of retail asset management UK at CBRE IM, said: “We are always looking to improve and evolve our assets to ensure...

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Regeneration group to anchor Nuneaton town centre development

26th September 2023

Nuneaton and Bedworth Council, alongside strategic partner Queensberry, has appointed regeneration specialists Really Local Group to anchor its mixed-use town centre development Grayson Place. The group – which is behind the Catford Mews, Ealing Project, Peckham Levels, Reading Biscuit Factory, and Sidcup Storyteller developments – will open a 14,000 sq ft leisure and culture space at the Nuneaton scheme. The space is set to feature a five-screen cinema, a live performance area, a café, a bar, and community hub. It will be Really Local Group first major project outside London and the South East. In total, Grayson Place will comprise 29,000 sq ft of leisure space as well as a 10,000 sq ft food hall and 8,000 sq ft of other retail and food and beverage spaces. New public realm will also be created, designed for markets, pop-ups, and cultural uses. Preston Benson, founder of Really Local Group, said: “It is our mission to create cultural and community venues that reflect the heart of local high streets, with and for the local community. Nuneaton is brimming with character, and our ethos aligns closely with the council’s transformation vision for the town centre, one that will bring a diverse programme of...

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Flannels opens in Nottingham

25th September 2023

Frasers Group has opened the doors to its latest Flannels store at Nottingham’s high street. The 15,000 sq ft store will be spread over two floors and offer a range of men’s, women’s, and children’s clothing and accessories from some of fashion’s biggest names. The opening comes as Flannels looks to continue investing into retail and open more stores throughout the UK. Flannels now trades from over 60 stores in the UK and Ireland. The retailer is set to open flagship stores at Metrocentre in Gateshead, as well as in Cardiff and Leeds. Frasers Group head of retail, luxury, and premium Lauren Barrie said: “We’re really proud to open our next regional boutique in the heart of Nottingham. As we continue to expand and develop our vision, the store brings to life the FLANNELS brand in a physical space – providing an engaging shopping destination, with the biggest brands in luxury fashion and contemporary streetwear all under one roof.”

Deals

City office building set for hotel conversion after £56.5m sale

25th September 2023

An office building in the City of London is set to be converted into a hotel-led development following a £56.5m sale. Hospitality group Whitbread has acquired New London House at 6 London Street, EC3, from clients of Orchard Street Investment Management. The building, which spans a net internal area of 89,722 sq ft, was developed in the 1970s and comprises a podium and tower structure. It sits adjacent to Fenchurch Street station in the middle of the capital’s financial district. Whitbread will now look to seek planning permission from the City of London Corporation to transform the building into a hotel-led mixed-use development with a number of complementary uses as well as new public spaces. The acquisition is part of the hospitality group’s strategy of targeting office buildings which no longer meet occupier and investor requirements with the intention of converting them into hotels. Whitbread has over 25 years of experience with developing former office buildings into Premier Inn and Hub by Premier Inn hotels, with two of these projects currently underway at Farringdon and Moorgate. Jonathan Langdon, senior acquisition manager at Whitbread, said: “The City of London’s appeal as a business and leisure destination continues to underwrite our investments...

Deals News

Rituals set to open 25 new stores in 2024

25th September 2023

Rituals is planning to open 25 new stores next year, as it continues its expansion. The cosmetics company – which currently operates 68 stores throughout the UK and Ireland, is also set to open a further 10 stores before the end of 2023, Retail Week has reported. The retailer opened its latest and largest store in Oxford Street last week. Rituals managing director for UK and Ireland, Penny Grivea, said: “We’re seeing tremendous growth. In the UK, we’ve got at the moment 28% like-for-like growth and 25% for Ireland. “Our visitor numbers are up by double-digit growth and we strongly believe that people want to have that experience.” One of the Dutch retailer’s stores which is set to open later this year is at Merry Hill in Dudley, with Rituals occupying Phase Eight’s former store.

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Mango to open at Silverburn

25th September 2023

Clothing retailer Mango is set to open at Glasgow’s Silverburn shopping centre in 2024, real estate investment firm Eurofund Group has announced. Mango will be opening in a 6,572 sq ft store, as the Spanish fashion retailer continues to expand its presence across the UK. Mango’s Silverburn store will become its third in Glasgow, and will offer a range of clothing, footwear, and accessories collections. The retailer joins a number of new tenants who have opened at the scheme in the last year, such as The White Company and Polestar. Other retailers at Silverburn include Next, Zara, New Look, JD Sports, and Flannels. Silverburn has also recently delivered improvements to the scheme’s environment including a new children’s play area, new furnishings, and additional greenery. Alberto Esguevillas, CEO of UK retail at Eurofund Group said: “The addition of Mango to Silverburn is a fantastic opportunity for both parties. Mango taking up a prime unit is emblematic of the centre’s continued strong performance, and we are delighted to be the brand’s latest destination of choice.” Alex Coffey, UK commercial director of Eurofund Group added: “We are thrilled to be working with Mango to build out an unparalleled offering and continue to serve...

Deals News

Aldi to invest over £1.4bn as it reaches record sales

25th September 2023

Aldi has said it plans to invest over £1.4bn into its store estate, as the supermarket retailer reveals record sales in 2022. The retailer, which recently opened its 1,000th UK store, said it plans to open 18 new branches before the end of the year as it aims for a long-term target of up to 500 new stores. This comes as Aldi said its annual sales reached their highest level in the retailer’s 33-year history in 2022, with the cost-of-living crisis having “transformed” the way British customers shop for groceries. The retailer’s record £15.5bn sales figure for the 12 months ending December 2022 was £2bn higher than the previous year. Aldi said its latest data shows its sales are growing at 17.1% – the fastest of any supermarket – with market share reaching 10.1%. It said its operating profit increased to £178.7m last year, up from £60.2m in 2021, with Aldi noting that the year-on-year increase was reflective of an exceptional 2021 during which it made significant investments in Covid-related measures. Aldi also said that last year it overtook Morrisons to become the country’s fourth-biggest supermarket, with two-thirds of Britons now shopping there. Giles Hurley, chief executive officer for Aldi...

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Londonderry shopping centre changes hands for £27m

25th September 2023

Foyleside Shopping Centre in Londonderry has been purchased by a group of local investors for £27m. The scheme was sold by London-based investment firm Kildare Partners, which recently offloaded the Forestside Shopping Centre in Belfast for a reported £42m. The four-storey shopping centre extends to around 365,000 sq ft and is home to 53 units, with tenants including Frasers, Marks & Spencer, and Dunnes Stores. The new owners, said they would work with existing and new occupiers to further enhance the scheme’s offering. Savills, which handled the sale, said the shopping centre presents a number of opportunities for the new owners, such as the potential development of leisure, residential and office spaces. There is also the possibility to create a multi-screen cinema on the roof of one of the centre’s car parks.

Deals News

Merry Hill to welcome KENJI and Rituals

25th September 2023

Sovereign Centros’ Merry Hill shopping destination in Dudley is set to welcome KENJI and Rituals later this year, with the retailers taking over 6,850 sq ft of combined space. KENJI’s Merry Hill store will become its 10th in the UK, with the brand opening adjacent to Schuh on the Lower Mall nearby to the recently opened Nike Unite and Schuh Kids. The 4,833 sq ft store will stock a range of Asian-inspired products such as homeware, stationery, gifts, and its signature plushies. Dutch retailer Rituals will open in the 2,022 sq ft space formerly occupied by Phase Eight on the Upper Mall. The store will offer various health and wellbeing products, such as home items, gift sets, and bath and body products. Alistair Winning, asset manager at Sovereign Centros, said: “Having brands like KENJI and Rituals joining the retail line-up here at Merry Hill adds to the ever-increasing range of retailers, products, and experiences. This is a perfect example of the continuous progress we’re making, with leading retailers selecting the destination and upholding our position as one of the top 10 destinations in the UK. We look forward to welcoming them to Merry Hill later this year.” The signings follow...

Deals News

Bespoke Hotels completes sale of Dorking hotel

25th September 2023

Bespoke Hotels has completed the sale of the White Horse Hotel in Dorking to the Heartwood Collection for an undisclosed sum. The group acquired the historic hotel in 2017 before completing a £4m refurbishment and launching the White Horse Hotel and Dozen Restaurant in 2018. The Heartwood Church has plans to relaunch the hotel as part of its portfolio in 2024. Bespoke Hotels was advised by Savills on the transaction. Haydn Fentum, Bespoke chair, said: “The plans for the future are very exciting and will leave the town with an outstanding hotel and restaurant. It is our intention to acquire further hotels in the UK and we will be recycling the proceeds into future growth.” Harriet Fuller, associate director in the Hotel Capital Markets Team at Savills, on behalf of Bespoke Hotels, said: “We are delighted to have secured the sale of the White Horse Hotel for our client, Bespoke Hotels. The completion of this sale evidences the continued appetite in the market for well located, well capitalised assets.”

Deals News

Hospitality body calls on rail unions to resume negotiations

22nd September 2023

UKHospitality has called on the Government and rail unions and companies to resume negotiations as a “matter of urgency”. The group said that £3.5bn in lost sales has already been racked up due to industrial action, including upcoming strikes in September and October. Industrial action has been announced by the ASLEF Union on Saturday 30 December and Wednesday 4 October. The union also announced a ban on overtime on Friday 29 September and from Monday 2 to Friday 6 October. This comes as the Transport Committee recommends that sectors such as hospitality are afforded protection in upcoming rail legislation. The committee published a report that outlines nine tests that proposed minimum service levels must meet. One of the rules put forward states that a minimum service level for rail should protect industries that cannot adopt flexible and remote working patterns, such as hospitality. UKHospitality chief Executive Kate Nicholls said: “As we have seen over the past year, hospitality businesses and their staff continue to suffer as collateral damage as a result of ongoing rail strikes. “The elephant in the room is the complete lack of progress made in recent months by the negotiating parties. “It’s time that everyone involved gets...

News

CBRE in discussions to acquire one of UK’s largest asset managers

22nd September 2023

Commercial real estate firm CBRE is in talks to acquire leading asset management firm Sovereign Centros, according to reports. Sovereign Centros says it has 12.5 million sq ft of assets under its management, with an additional 4 million sq ft in the pipeline. Its current portfolio includes a number of shopping centre and retail park assets, including Gateshead’s Metrocentre, Merry Hill Shopping Centre in Dudley, and Basingstoke’s Festival Place. The firm also works with a number of global institutions, pension funds, and public bodies on various town centre projects with partners such as Blackstone, Morgan Stanley, Wells Fargo, and BNP Paribas. It also works with Tesco and Frasers Group. CBRE operates from over 500 offices in more than 100 countries, working across multiple facets of real estate, including investment, planning, design, and portfolio management. The firm was recently appointed as investment advisor for the Greater Manchester Property Venture Fund.

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Belfast airport Premier Inn given the green light

22nd September 2023

Councillors in Belfast have granted planning permission for the construction of a three-storey Premier Inn hotel just 100 metres from the city’s airport. The proposals for the 81-bedroom hotel in Crumlin also include the creation of a restaurant and bar as well as a 130-space car park. The development is said to be worth around £5.5m. A senior planning officer told Antrim and Newtownabbey Borough Council that the proposed site is already earmarked for airport use, adding that permission had been approved previously in 2018. Concerns over road safety were noted, however, the Department for Infrastructure did not put forward any objection. Tom McGrath, chair of Belfast International Consultative Forum, said in the pre-application community consultation report: “An 81-bed hotel will be a significant boost. We have to build new facilities if we are to expand our tourism offer. “As the airport grows, so too will demand for quality facilities.” David Shaw, general manager of airline Woodgate Aviation, added: “The hotel directly mirrors the growth being experienced on the airport site. This proposed investment proves just how much an economic hub the airport is and what it’s capable of delivering for the wider Northern Ireland economy.” Premier Inn has previously...

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Sunny weather sees retail sales increase in August

22nd September 2023

Retail sales in August bounced back from a dip in July, according to the latest figures from the Office for National Statistics (ONS). The ONS said that retail sales volumes are estimated to have increased by 0.4% in August 2023, recovering from a fall of 1.1% in July. Broadly, sales volumes saw a rise of 0.3% in the three months to August 2023 when compared to the previous three months. Food stores sales volumes increased by 1.2% in August, following a decline of 2.6% in July, when supermarkets reported that wet weather had reduced clothing sales, while supermarket food sales also fell. Non-food stores sales volumes enjoyed growth of 0.6% in August, following a fall of 1.2% in July. However, non-store retailing – which is predominantly online retailers – saw sales volumes fall 1.3% in August, following an increase of 1.9% in July when wet weather and a range of promotions boosted sales. ONS senior statistician Heather Bovill said: “Retail recovered a little from the large fall seen in July, driven by a partial bounce back in food and a strong month for clothing, though sales overall remain subdued. “These were partially offset by internet sales, which dropped slightly as...

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Consumer confidence reaches highest level since January 2022

22nd September 2023

GfK’s Consumer Confidence Index reached its highest level in nearly two years in September, the second consecutive month of increasing scores following August’s bounce-back. The overall index score increased by four points to -25, the highest since January 2022, with all measures improving compared to August. This was 28 points ahead of September last year, which recorded a score of -49. 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 two points to -13, while the score for personal financial situation for the next 12 months increased one point to -2. The score for consumer opinions on the general economic situation over the last 12 months improved by five points points to -47, whilst the index measuring sentiments about the next 12 months rose six points to -24. The major purchase index, which measures consumer likelihood to make larger, discretionary purchases, also increased, climbing four points to -20. The savings index, which does not contribute to the overall score, was unchanged, at 27. This may be seen as a reflection of high...

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BOXPARK appoints NEC boss as chair

22nd September 2023

BOXPARK has appointed Paul Thandi as chair as the converted shipping container retail and leisure group continues to expand. Thandi was appointed as chair of events group NEC – where he has been chief executive for 16 years – earlier in 2023. Founded in 2011, BOXPARK currently operates sites in Shoreditch, Croydon and Wembley. The group previously announced that it would be opening its first site outside of London in Liverpool’s Baltic Triangle. The group is also set to launch its sibling brand BOXHALL in Bristol in 2024. Thandi will succeed John Leslie as chair, who will remain with the company’s board and continue to chair its remuneration and audit committees. In 2021, the group received backing from private equity firm LDC to help aid its expansion. Paul Thandi said: “LDC’s investment in BOXPARK is a great sign of the strength of the existing brand and platform. “The opportunity for the team, the brand, future sites and importantly our traders and customers is something that I am genuinely excited about working on with the team, investors and the board. “The scaling of the business through consistent performance across existing sites, what we do well today and how we move that...

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DFS edges closer to Sofology showroom target

22nd September 2023

DFS has said it is getting closer to its nationwide target of 65-70 Sofology showrooms, despite the retailer seeing its profits almost half during the last financial year (FY23). In the year ending 25 June 2023, the furniture retailer opened three Sofology showrooms, bringing the total amount to 58. When DFS acquired Sofology in 2017, it had 38 showrooms. However, the retailer posted a decline in reported pre-tax profit during the period of 49.2% to £29.7m, down from £58.5m during the same period the previous year. DFS said the decline was anticipated, given strong post-Pandemic sales the prior year and weak market demand in 2023, combined with inflationary pressures. The retailer’s revenue from ongoing operations (excluding its discontinued businesses in Spain and the Netherlands) also fell, declining 5.3% year-on-year to £1.09bn. However, this was 13.8% ahead of pre-pandemic levels. Despite recording falls in revenue and profit, DFS said it was continuing to win market share in a “very tough market”, and said it had extended its market leadership by 2 percentage points to a record 38% of the UK upholstery market. The retailer also said it was operationally in the strongest position since the Pandemic, reflected in its customer experience...

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Property developers look to padel to reinvigorate destinations and build communities

21st September 2023

Property crazes come and go, but padel, a new racket sport, looks set to stay, as developers, landlords and agents look to incorporate it at their sites, to help build communities and attract footfall. Touted as the world’s fastest growing sport, padel was invented in Mexico in the 1970s. Fast forward to now and over 25 million people around the world play the game regularly. In Argentina there are more padel players than footballers. In the Middle East the sport is on the national curriculum. In Europe, 15,000 new courts were registered in 2021. By 2032, it is expected to become an Olympic sport. Celebrity fans of the game include Andy Murray and Virgil van Dijk, who have both invested in British company, Game4Padel, as well as David Beckham, Pep Guardiola, Elle MacPherson and Nicole Scherzinger. What makes padel so appealing is its relatively simple rules, the ease with which it can be learned and mastered, and, the big draw, the fact it is highly social. Played in doubles pairs, on a small court, there is always lots of laughter, banter and friendly rivalry between players. It’s this that is convincing property developers and landlords to introduce it to their...

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BPF: Sunak U-turn on net zero “deeply frustrating”

21st September 2023

The chief executive of the British Property Foundation (BPF) has branded the Prime Minister’s decision to alter a number of climate change policies as “deeply frustrating” for investors and property owners. Melanie Leech said the changes in policy will cause problems for property professionals who have already made long-term plans and financial commitments to adhere to climate change targets. She added that despite Rishi Sunak having said the Government remains committed to a 2050 net zero target, pushing back planned milestones is “the opposite of what [the BPF] need[s]”. The Prime Minister announced on Wednesday that the Government would be making a number of exemptions and delays to several key climate policies. Included in the changes is the scrapping of energy efficiency targets for landlords. The Government had originally planned to implement a policy from 2025 in which tenancies would only be possible at properties with an Energy Performance Certificate (EPC) rating of C or higher. From 2028, this policy would also apply to existing tenancies. Melanie Leech added: “While we understand the need for pragmatism to support households, businesses need certainty in order to invest. Changing the strategic goalposts will deter investment, make the task of meeting the 2050...

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