Posts from September 2023

Sheffield’s Meadowhall set for £750m sale

19th September 2023

British Land and Norwegian sovereign fund Norges are preparing a sale of the Meadowhall shopping centre in Sheffield. Agents from CBRE have been appointed to handle the sales process with British Land seeking around £750m for the scheme, The Times has reported. Potential buyers would have to take on a debt of £450m which is secured against the centre, which had struggled in the run-up to and aftermath of the pandemic. The cost of this debt means that British Land and Norges had received no income from the scheme for three years. However, The Times said that Meadowhall’s income is now close to surpassing the debt costs. British Land purchased Meadowhall for £1.2bn in 1999. The scheme – which was constructed in 1990, is home to anchor tenants Marks & Spencer and Primark and is currently 98% occupied. British Land has previously said its main focus is retail parks, having described them as the “winning format”.

News

Pendragon to sell UK auto retail business in £250m deal

19th September 2023

Pendragon has agreed the sale of its motor and leasing business to a United States-based automotive giant. Oregon-headquartered Lithia Motors is set to acquire the business which includes auto retail brands such as Evans Halshaw and Stratstone for £250m. Pendragon trades from around 160 sites in the UK and represents over 20 different vehicle manufacturers. The two companies have also agreed a strategic partnership which will see Pendragon roll out its dealer management software Pinewood to Lithia’s existing UK business of 50 sites. They will also form a joint venture to bring Pinewood to the North American market, along with a subscription by Lithia to £30m worth of Pendragon’s shares. As a result of the transaction, Pinewood will become a standalone entity and retain Pendragon’s existing listing on the London Stock Exchange. It will henceforth operates solely as a ‘Software as a Service’ business. Pendragon’s board believes the takeover will deliver around £240m of dividends to its shareholders. Ian Filby, non-Executive chairman of Pendragon, said: “Pendragon has made strong progress executing its strategy in recent years and the business has been repositioned successfully as a digitally-enabled automotive retailer. Today’s announcement follows an extensive strategic review undertaken by the board of Pendragon to...

News

Plans submitted for redevelopment of Leeds shopping centre

18th September 2023

Plans for the redevelopment of The Core Shopping Centre in Leeds into a mixed-use development have been submitted to councillors. The proposals would see the scheme – formerly known as the Headrow Shopping Centre – demolished to make way for 36,500 sq ft of commercial space along with community facilities and student accommodation. Under the plans for the, submitted by AFAS The Core and Fusion Global Management, three new buildings would be constructed, with the tallest being nine storeys tall. Shops, cafés, restaurants and bars would occupy the commercial space at the development, which would be called the Garnet Exchange. The shopping centre, which sits at the site of the former Schofields Department Store, is currently home to a number of vacant units with some tenants already expressing their intention to leave at the end of their leases. A planning statement said: “Despite the loss of retail floor space resulting from the proposed development, this will be appropriately mitigated through the introduction of new streets and thus an increase in active frontages and improved public realm”. Pre-application proposals were originally submitted to Leeds City Council in May this year, with members broadly supportive. However some concerns were raised over the...

News

Tim Hortons launches UK franchise model

18th September 2023

Tim Hortons has announced plans to launch a new franchise model in the UK. The Canadian quick-service restaurant brand first made its UK debut in 2017 and is now looking to expand on its current portfolio of 75 sites. The brand – which specialises in coffee, breakfast items, sandwiches and doughnuts – opened 31 restaurants in 2022 alone. Tim Hortons’ launch of its franchise model comes after a five-year ‘test and learn’ phase, with the chain targeting both drive-through and high street restaurants. Existing Tim Hortons restaurants in the UK have seen high demand, with the brand’s opening at The Park Royal London one if its most successful globally in five years. The brand has almost six decades of franchising experience, with over 1,500 franchisees in Canada whilst the business continues to expand across China, India, U.A.E, and Mexico. Kevin Hydes, chief commercial officer of Tim Hortons franchise in the UK, said: “The reception to Tim Hortons here in the UK has been nothing short of extraordinary. The brand has only grown in demand thanks to the support of loyal fans and excited newcomers ever since we opened our first restaurant in Glasgow back in 2017.” He added: “We continue to...

News

Green light for Warrington shopping centre redevelopment

18th September 2023

Plans for the redevelopment of a Warrington shopping centre have been the go-ahead by councillors. The proposals, submitted by regeneration specialist Altered Space, look to downsize Cockhedge Shopping Centre whilst providing an improved commercial offering. The redevelopment would see the demolition of 16 retail units and the removal of a nearby pedestrian bridge, while also looking to attract new retail, leisure, and food and beverage operators. Altered Space intends to create a more accessible and appealing shopping centre, in line with the wider Greater Cockhedge Master Plan, which was approved in August 2022. The group’s proposals detail the introduction of new external entrances to the shopping centre, as well as four new external units. Also proposed is the creation of public realm spaces on all sides of the scheme. Michael Brown, managing director at Altered Space, said: “The approval of our planning application enables us to contribute to the potential of Cockhedge and foster the growth of Warrington’s economy.” Mark Rebbeck, director, added: “As well as building the physical environment, prioritising the community rather than focusing completely on profit is key to our redevelopments. A people-first approach will be fundamental to our redevelopment in Warrington. This will ensure that a commercial...

News

Mike Ashley in talks to sell Missguided to Shein

18th September 2023

Retail tycoon Mike Ashley is in talks to sell online clothing brand Missguided to Chinese-founded fashion giant Shein. The deal would mark the first time Shein has acquired a British fashion brand. City sources told Sky News that the two parties have been in discussions for several weeks, and it remains to be seen how soon a deal could be announced or whether it may collapse. One source suggested that the deal could see Shein take ownership of Missguided’s brand and intellectual property, whilst Mike Ashley’s Frasers Group would retain control of its head office. Shein, which is now headquartered in Singapore, is estimated to worth around $66bn (£53bn). The group is reportedly considering going public in the United States within the next year, and is said to be lining up investment banks to kick off an initial public offering. Missguided, which was founded in 2009, fell into insolvency in spring 2022 amid increasing losses. It was swooped up by Frasers Group for £20m, beating out a bid from online fashion retailer Boohoo.

News

England and Wales losing two pubs a day

18th September 2023

Pubs in England and Wales are closing at a rate of two a day, according to Government figures compiled by commercial real estate specialists Altus Group. In the three months to 30 June, 230 pubs called last orders for the final time, an increase over the previous quarter which saw 153 closures. This means a total of 383 were demolished or converted between January and June. The overall number of pubs in England and Wales, including vacant units and those on the market, fell to 39,404 at the end of June. Wales lost the most pubs in the first half of 2023 with 52, whilst London and the North West lost 46 each. In total, 386 pubs closed throughout the whole of 2022. In August, The Campaign for Pubs wrote to the Prime Minister calling for an end to the “predatory purchasing and asset stripping of historic pubs”, in the wake of the fire and subsequent demolition at The Crooked House in Staffordshire. Alex Probyn, president of property tax at Altus Group, called on the Chancellor to provide more support for businesses in the upcoming Autumn Statement, with business rates set to increase by 6% in line with inflation in April 2024....

News

Waterstones owner eyes bid for The Body Shop

18th September 2023

The owner of Waterstones is one of a number of names eyeing up a bid for The Body Shop, after the cosmetics retailer was put on the market. Elliott Advisors, the firm best-known for its activist investment campaigns, submitted an offer for the retailer in recent weeks, Sky News has reported. The Body Shop was put up for sale by Brazilian company Natura, which has owned the retailer since 2017. City sources told Sky News that the auction, which is being handled by Morgan Stanley, was proceeding quickly with Natura looking to reach a provisional agreement on a sale by the end of October. Prior to its sale to Natura, The Body Shop was owned by L’Oreal, but has since struggled to achieve profitable growth. It has grown rapidly in recent years through acquisitions, but has posted losses for six consecutive quarters. The business was previously valued at £406m. As well as Waterstones, Elliott Advisors owns US book retailer Barnes & Noble and has also backed fashion accessories chain Claire’s. The firm was also among the suitors for cinema operator Cineworld, earlier this year.

News

Lidl could snap up former Wilko stores as it targets 1,100 locations

18th September 2023

Lidl has become the latest retailer to set its sights on vacant Wilko stores, as the grocer looks to open 1,100 shops by the end of 2025. Lidl boss Ryan McDonnell told Retail Week that the retailer’s property team is in very close contact with Wilko’s administrator PwC. He said that while no deals with PwC were finalised, Lidl was “certainly always interested” in properties that meet its requirements. The retailer, which current operates over 960 stores in the UK, opened 50 supermarkets in the year to 28 February 2023, more than any of its rivals. This heavy investment, combined with a commitment to lower prices, meant the retailer posted a £76m loss during the same period. Wilko fell into administration in August after a difficult post-Pandemic period saw lower footfalls and a decline in consumer spending due to the cost-of-living crisis. At the time, it employed over 12,500 members of staff. A deal was agreed recently which sees rival retailer The Range has take control of Wilko’s brand, however its stores are still set to close. This came after Pepco announced an agreement to take on the leases of up to 71 Wilko stores to convert to its Poundland brand. Rival chain B&M...

News

Finding the right retail property agent

15th September 2023

If you’ve got a business that you want to take to a physical store, finding the right retail property agent is a great first step to take. You may have dealt with residential agents before, which may give you some experience, but working with retail property agents tends to be a longer and more complicated process. That said, their expertise can be invaluable, so here are our top tips for choosing the right retail property agent. Read more: Choosing the right time to start a business Pick a retail property agent with the correct know-how Knowing the right type of retail property agent for your business is the first step to ensuring you make the right choice. Just as residential agents may specialise in different properties, such as student accommodation or mansions, retail agents will have their own area of expertise. For example, some retail property agents may have a focus on out-of-town retail, whereas others might specialise in high street retail or shopping centres. So you want to make sure that you know which kinds of areas you’re targeting before you start looking for agents. The scale of your business will also have an effect on which retail property...

Advice

Former Co-op Pyramid could become curry house under new plans

15th September 2023

Plans have been lodged which could see the former Co-op headquarters at Stockport’s iconic Pyramid transformed into a curry house. Royal Nawaab has submitted proposals for a 350-seat restaurant and three banquet halls at the building, which was the occupied by the Co-operative Bank for 23 years. The plans also detail the creation of private VIP rooms, as well as a bar area and a bride’s room for weddings. The pyramid, which sits adjacent to the M60, was originally meant to be one of five as part of Manchester’s own ‘Valley of Kings’ – a nod to ancient Egypt. However, its developers then fell into bankruptcy before the Co-op, which had paid for its construction, repossessed the site. The 46,000 sq ft office building on Yew Street has remained vacant for the last five years following the Co-op’s departure. In May 2019, the building was purchased by a Saudi Arabian investor with Eamar Developments acquiring the building from the Co-op. It had been on the market with a price tag of over £4.5m. Mahboob Hussain of Royal Nawaab said: “We are hoping to breathe much needed life into this iconic building and bring with it a significant investment and job...

News

H&M lags behind biggest rival with “flattish” sales

15th September 2023

The H&M Group has recorded “flattish” net sales as it continues to lag behind its closest rival, Zara owner Inditex. H&M, which also owns brands such as Cos and Arket, saw an year-on-year increase in net sales of 6% to 60.8bn Swedish Krona (£44bn) between 1 June and 31 August 2023. Excluding Russia, Belarus, and Ukraine, the increase was 8%. H&M said work towards the its goal of reaching a 10% operating margin in 2024 is “goingin the right direction”, whilst profitability and inventory levels had been prioritised in the quarter. The Swedish retail group’s fortune’s pale in contrast to Inditex, which earlier this week revealed results which extended its lead as the world’s biggest fashion company. The Spanish company, which owns brands such as Zara, Bershka, and Pull & Bear, recorded a 40% increase in profit during the six months to July 2023 compared to the same period the year before. Inditex said it was able to benefit from being able to deliver fashionable trends quickly from nearby suppliers, enabling it to widen its gap to H&M.

News

Seven Pizza Hut franchised restaurants sold in pre-pack deals

15th September 2023

Seven Pizza Hut franchise restaurants across Sussex and the Midlands have been sold in pre-pack deals by administrators. Springfields Advisory was appointed administrator of three Pizza Hut franchising companies on 7 September, before immediately offloading the seven delivery only sites to unrelated parties. The restaurants include three in Leicester, two in Crawley and one each in Loughborough and Tamworth. It is understood that their new owners intend to re-open the sites. The franchise businesses had faced financial difficulties before exploring their options and opting to accelerate the sales processes in conjunction with Pizza Hut and other stakeholders. Pizza Hut said it will look to support affected employees and if possible employ them at other sites ran by Pizza Hut or any of owner group Yum!’s branded sites. Nicolas Burquier, managing director of Pizza Hut UK & Europe, said: “We are grateful to Springfields Advisory for enabling the sale of these franchise stores. “Responding to an ever-shifting consumer landscape, our business and operating models are evolving. We remain confident and committed in our vision to be the number one choice in pizza; for consumers to order our pizza, employees to choose to be a part of our business and to be...

News

Pepco CEO steps down

15th September 2023

The chief executive officer of Poundland owner Pepco has stepped down. Trevor Masters, who had been CEO since early 2022, has been temporarily replaced by the chair of the board Andy Bond, who takes on the position of executive chair. Bond had previously served as chief executive of Pepco between 2015 and 2022 before stepping down due to health reasons. Andy Bond said: “We would like to thank Trevor for his leadership most recently as group CEO and previously as managing director of Pepco Poland. He has provided leadership over the last few years and the business is well set for future growth. We wish him well. “I am excited to be once again taking an active role in leading Pepco Group, providing continuity for a wonderful business that feels like family to me, which I’ve enjoyed being involved with since 2012”. This comes as the group updates its current earnings (EBITDA) guidance for the year ending 30 September 2023, which it now expects to be slightly lower than anticipated on the back of worse than expected sales performance. Pepco also confirmed that it will meet its net new store opening target of 550 stores for the financial year. The group...

News

Supermarket Income REIT secures £67m debt facility in refinancing move

15th September 2023

Supermarket Income REIT has secured a £67m debt facility as part of wider refinancing efforts. The real estate investment trust, which invests in UK grocery property, has also cancelled two shorter-dated debt facilities and reduced and extended an existing debt facility. Overall, the REIT has reduced its loan-to-value ratio to 34%, down from 40% in December 2022, with the weighted average term of debt now in excess of four years. Over 60% of the REIT’s debt facilities are now unsecured, compared to 48% in December, and the company said it has available undrawn facilities in excess of £100m. The cancellation of the two shorter-dated debt facilities included a £77.5m revolving credit facility with Barclays and the Royal Bank of Canada, and a £62.1m unsecured debt facility provided by a syndicate of banks. The REIT’s existing secured interest-only £150 million revolving credit facility with HSBC has been refinanced with a new £50 million, secured, three-year facility with a £75 million uncommitted accordion option. The new facility has two one-year extension options. The new £67m facility has been completed with Sumitomo Mitsui Banking Corporation (SMBC). The unsecured, three-year debt facility has two one-year extension options. Ben Green, director of Atrato Capital, the...

News

Games Workshop: “Healthy growth” sees trading ahead of expectations

15th September 2023

Games Workshop has seen its revenue and profits exceed expectations as it enjoys “healthy growth across all channels”. The Warhammer brand and stores operator recorded a core revenue of around £121m in the three months to 27 August 2023. This was ahead of the same period last year by £15m. Licensing revenue doubled during the period to £6m, a year-on-year increase of £3m. Profit before tax at the models and games retailer was also up during the quarter, at an estimated £57m, an increase of £14m compared to the same period in 2022. The retailer said that while it recognised that performance was better than in 2022, it was aware that it is still early in the financial year.

News

Pension fund appoints CBRE as investment advisor

15th September 2023

Greater Manchester Pension Fund (GMPF) has appointed CBRE as investment advisor for its Greater Manchester Property Venture Fund. The fund invests in both residential and commercial property, with developments supported by the fund in recent years including: One St Peter’s Square; 8 First St; Airport City; Circle Square; Manchester New Square; Leonardo Hotel; Crusader Mill; Colliers Yard; Mailbox Stockport; and Island Manchester. The fund has an £840m investment allocation to local property development, focused on the North West and West Yorkshire. CBRE has been appointed on a seven-year mandate, and will look to provide strategic advice to GMPF to aid investment in direct and lending opportunities across both the commercial and residential sectors, whilst also meeting other investment targets. These objectives include generating income for the fund whilst also contributing to the economic growth of the associated regions through employment opportunities, environmental and living standards, further investments, and the regeneration of urban areas. GMPF has invested in property development across the North-West for over 30 years, both as a developer, and also as a provider of development debt and equity, alongside other developers in the region. Colin Thomasson, head of northern investment at CBRE, said: “The investment potential across the...

News

Independent food market to double presence at Elephant Park

15th September 2023

An independent pan-Asian food market is set to more than double its footprint at Lendlease’s Elephant Park development in South London. Kiki & Miumiu on Walworth Road will extend into a neighbouring unit to cover 4,745 sq ft of space and will also introduce Taiwanese bubble tea concept T4. The decision to upsize follows two successful years of trading at Elephant Park for Kiki & Miumiu, and is a direct result of strong sales for the brand. Work has also commenced to create additional grocery and bubble tea space, which is set to open later in the year. Guy Thomas, head of retail and place assets at Lendlease, said: “Kiki & Miumiu’s journey here at Elephant Park is a brilliant success story for the destination. The brand’s commitment to providing authentic and exciting produce has given them a loyal and engaged customer base, completely vindicating our decision to entrust this great corner unit to a new independent operation. “We firmly believed the offer would resonate and are pleased to be supporting Kiki & Miumiu with their resulting expansion, watching them go from strength to strength as Elephant Park tenants continue to thrive.” Lendlease is also currently in the process of...

Deals News

Newcastle’s Quayside West development plot sold by administrators

15th September 2023

A plot of land in Newcastle which was once the potential home of a £250m development has been offloaded by administrators. Developer Newby initially unveiled its plans in 2018 for the Quayside West development, which would have seen the creation of 1,100 homes, as well as retail, leisure, and business space. A 135-bedroom hotel was also planned. Despite the proposals receiving planning approval in 2020, Newby is understood to have pulled out of the project two years ago. Then on 10 July 2023, Quayside West Ltd – the company set up to lead the development – was placed into administration. Administrators from FRP Advisory have now accepted a bid for the land worth £7m, and hope to complete the sale as soon as this month. FRP Advisory said that a multitude of reasons led to the development company’s collapse, starting with its failure to secure funding from the Government. The group had been looking to secure grant funding to begin redeveloping the site, which was needed due to high infrastructure and clearance costs. The firm’s creditors then confirmed they would be unable to provide further funding until it found a new strategy. Then a winding-up petition – supported by two...

News

Ex-KFC tycoon snaps up Belfast’s Forestside for £42m

14th September 2023

The former operator of the UK’s largest KFC franchise has acquired one of Belfast’s biggest shopping centres. Michael Herbert is understood to have acquired Forestside Shopping Centre through investment vehicle Mussenden Properties, according to BBC News. He is believed to have paid £42m for the scheme, representing a finger-lickin’ £5m premium on the original asking price of £37m. The 336,000 sq ft shopping centre is home to anchor tenants Sainsbury’s, M&S, Dunnes Stores, and Next. At the time of sale, the scheme had 35 fully-let retail units and panning permission for three restaurants in one of its car parks. Forestside Shopping Centre was placed on the market by Savills in May of this year. Ben Turtle, director of investment at Savills Belfast, said: “The net initial yield of 7.91% is significantly ahead of market comparables in both Northern Ireland and Great Britain, and reflects the quality of the asset. “The transaction is evidence of growing investor appetite for such prime product in Northern Ireland, and we are pleased to have achieved this stellar result for our client despite some current headwinds.” At their peak, the Herberts operated a 140 restaurant-strong KFC franchise group which they had built over 40 years....

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