Posts from October 2023

The Restaurant Group (TRG) has completed the sale of its “loss making” leisure business, including the Frankie and Benny’s and Chiquito chains, to rival Big Table Group for £1. The sale, the agreement of which was announced in September, comprises the business’s 75 sites as well as its associated management and restaurant teams. Under the terms of the deal, TRG has made a £75m ‘dowry’ payment to Big Table Group, the operator of brands including Bella Italia, Las Iguanas, and Banana Tree. TRG, which owns the Wagamama restaurant chain and Brunning & Price pub group, has been in the process of “rationalising” its leisure estate over the course of the year. This has involved the disposal of a number of loss-making sites, with some being converted to Wagamama restaurants. As of December 2019, the group’s leisure estate comprised 350 sites, this number had dropped to just 75 prior to the sale. Andy Hornby, chief executive officer of TRG, said in September that the sale accelerates its medium-term strategic plans to increase adjusted earnings margins and reduce its leverage. Alan Morgan, chief executive officer of the Big Table Group, had added: “Creating, developing and acquiring brands that complement our existing portfolio...

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Star City signs trio of leases

Birmingham’s Star City leisure and entertainment complex has welcomed the signings of three new leases. Adventure golf concept Jungle Rumble has taken a 15-year lease for a 13,407 sq ft unit, which will also offer food and drinks. Meanwhile, indoor soft play operator Monster Mayhem has opted to extend the lease at its current 8,947 sq ft unit by an additional ten years. Also renewing its lease is South Asian restaurant concept Zauq Buffet, which has signed a 15-year extension for its 5,460 sq ft unit. John Maddison, partner at Star City’s asset manager Quadrant, said: “The long leases being signed with innovative leisure brands at Star City are testament to its reputation as one of the leading entertainment destinations in the Midlands. “The unique and growing mix of attractions here continue to increase footfall, which explains why so many leading leisure operators want to be part of Star City.” In August, Star City welcomed a raft of lettings led by Capital Karts, which is set to open the longest go-karting track in the Midlands. Since Quadrant’s 2016 takeover on behalf of a US-based asset manager, Star City has been rebranded, introduced a new management team, and seen a number...

Deals News

Sportswear retailer kicks off Birmingham and Watford openings

Footasylum has opened two new stores at Birmingham’s Bullring and Atria in Watford, as it continues its UK expansion. In Birmingham, the retailer has upsized from its former 2,500 sq ft unit at the Bullring, moving into an 11,000 sq ft unit previously occupied by New Look. The store is the brand’s latest to utilise its new design concept which was debuted at Lakeside Shopping Centre in West Thurrock earlier this year. The concept was then applied to Footasylum’s flagship store on London’s Oxford Street. In Watford, the retailer has opened a 6,000 sq ft store, a smaller version of its Oxford Street flagship. Bolstered by an acquisition by asset management Aurelius in August 2022, Footasylum is opening more stores across the UK, with an upsized store in Leicester’s Fosse Park due to launch in November. Barry Bown, executive chairman and chief executive of Footasylum, said: “2023 has been a transformational year for Footasylum, and these latest openings are further testament to our team’s amazing ability to deliver state-of-the-art stores for our customers across the country. “They take our tally for 2023 to six openings or upsizings, with more to come next year. Our expansion strategy has seen us enter...

Deals News

Real estate firm drives forward with £250m roadside joint venture

Barkby has entered a joint venture (JV) with a real estate private equity manager to acquire and develop a “substantial portfolio” of roadside real estate assets. The real estate firm said its partnership with New York and London-based Meadow Partners could create a portfolio worth over £250m. Barkby, which has been downsizing its pub portfolio in recent months to focus on its roadside business, said in March that it was eyeing real estate investment trust status. It is set to change its name to Roadside Real Estate, to better reflect its strategy. The JV will look to deliver a mixture of properties in the drive through, food convenience, trade counter, and logistics markets. It will also look to increase opportunities for electric vehicle charging capabilities. Under the terms of the arrangement, the portfolio will initially be funded by up to £100m of equity, with the JV targeting a double-digit internal rate of return during the 30 month initial investment period. Initially, Meadow will own and fund 97% of the JV, whilst Barkby will own and fund 3%, however the latter has an option to increase its holding to 10% during the first 12 months. Barkby will also progress the appointment...

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The Range secures former Cwmbran Wilko store

The Range has agreed to join Cwmbran Shopping Centre, taking residency in the former Wilko store. Taking 30,620 sq ft of retail space, the homeware and garden retailer has signed a 15-year lease at the South Wales destination. The retailer expects to open the store within the coming months. LCP, part of M Core, owns and manages the shopping centre. It has recently secured a number of new deals with occupiers, including the recently opened Coffee#1 and Dunelm, which is set to launch at the end of the month. Alex Williams, asset manager at LCP, said: “The Range consistently tops the list of desired new entrants to the town when we carry out customer feedback. We are delighted to be able to deliver on this desire and look forward to welcoming another household name to the town centre. “The swiftness with which we’ve been able to secure reoccupation of the former Wilko space – with The Range being just one of numerous interested parties – is a testament to the continued high level of demand for retail premises in Cwmbran. It’s been a pleasure to work with the team at The Range to ensure that the transaction proceeded efficiently to...

Deals News

The Body Shop in exclusive talks with potential buyer

The Body Shop could be sold a private equity investor, as the cosmetics retailer continues an ongoing sales process. Aurelius Group, which owns Footasylum and Lloyds Pharmacy, is said to be in exclusive negotiations for a purchase of The Body Shop, Sky News has reported. The Body Shop was put up for sale during the summer by its Brazilian owner Natura. It was reported that potential bidders had been put off by a £500m price tag placed on the retailer. If a deal goes through, it is expected that the business will be valued substantially lower than this figure, sources told Sky News. Other businesses which have been in the running for The Body Shop include Alteri Investors, private equity firm Epiris, and activist investor group Elliott Advisors, which owns Waterstones. Other than confirming in August that it was exploring “strategic alternatives” for the retailer, Natura has not since commented publicly on the process. Natura acquired The Body Shop from L’Oréal in a deal valued at €1bn (£864m) in 2017.

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Karaoke operator aims to hit a high note at Waterloo

Karaoke venue chain Lucky Voice is set to invest £1.6m into a new site at London’s Waterloo, becoming its first London site to the south of the River Thames. Taking a 3,200 sq ft unit at Waterloo Station’s The Sidings, Lucky Voice’s newest location will be situated underneath platforms 20-24, Propel reported. The Waterloo venue will become the chain’s fifth in London, following on from sites in Soho, Islington, Holborn, and Liverpool Street. The operator also has a site in Brighton. Charlie Elek, managing director of Lucky Voice, said that opening near major transport hubs is a “key part” of its growth strategy. The venue will be home to eight karaoke booths, a late-night bar, a VIP karaoke pod, a larger 20-capacity pod for bigger groups, and will have a late-night 2:30am licence. Lucky Voice Waterloo will also offer a menu which includes pizza, tacos, and small plates. The company revealed that its most recent opening in Liverpool Street was its best ever, with revenue during the first month up by 12% on its previous record at Holborn in 2019.

Deals News

Frasers Group offloads Missguided brand

Frasers Group has sold the intellectual property of the Missguided brand to Singapore-based online retailer Shein. Under the terms of the deal, Shein will acquire Missguided’s brand and trademarks, whilst Frasers Group will retain control of its real estate and employees which have now been incorporated into its fashion division. Frasers Group said the agreement has enabled “exciting” discussions with Shein and has presented potential opportunities for collaboration across its portfolio. Michael Murray, CEO of Frasers Group, said: “With I Saw it First and Missy Empire, we now have a foothold in women’s digital-first fashion. Retaining the combined Frasers fashion teams whilst rationalising our portfolio in this space to focus on fewer brands makes a lot of sense in the current climate. We are also excited about the ongoing discussions around further collaboration between Frasers Group and Shein.” The deal marks the first time Shein has acquired a British fashion brand. Shein 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...

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ASOS considers sale of former high street fashion giant

ASOS is eyeing a potential sale of the Topshop brand as part of efforts to turnaround its struggling fortunes. The online fashion retailer is said to be in the early stages of a sales process although it is unclear if any talks are currently underway, Sky News has reported. A potential asking price for the brand is also currently unknown. ASOS purchased the Topshop brand alongside Topman, Miss Selfridge, and HIIT in February 2021 in a deal which reached a value of £330m. Other parties which lost out in this bidding process – including Ted Baker owner ABG and JD Sports – are likely to show an interest in any potential sale. Frasers Group and Next are also expected to show an interest in the brand, with the two companies making a number of acquisitions over recent months. A purchase of the Topshop brand could see it make its return to UK high streets after it fell into administration in 2020. ASOS boss Jose Antonio Ramos Calomonte – who took over as chief executive last year – unveiled a 12-month turnaround plan in October 2022 with the aim of improving its performance and reducing costs. However, like many others, the...

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FHP completes hat-trick of Nottingham lettings

FHP Property Consultants has secured three deals in Nottingham city centre on behalf of private landlords. Rudy’s Pizza, which now has over 20 UK sites, has completed a letting for the former FCUK building at 6-10 Victoria Street. The building is now undergoing a fit-out of the ground and basement floors in preparation for an opening in late November. Regional jeweller Grace & Co has secured the former TM Lewin unit at 17 St Peter’s Gate. The building – which sits between White Company and Molton Brown – has seen refurbishment at ground and first floor with the upper levels converted to residential accommodation. The letting brings Grace & Co’s total store count to 11. Meanwhile, tea shop Bird & Blend has relocated from its previous spot at Victoria Street to a larger unit at 24 Bridlesmith Gate. The new store spans 1,193 sq ft of trading space over two floors. Oliver Marshall, director at FHP Property Consultants, said: “It is always great to bring new tenants to the city and to relocate existing ones to secure their long-term commitments to Nottingham. These are three really strong brands in different sectors that really add to the vitality of the city...

Deals News

Lego lands in Dublin

Lego has opened the doors to its second Irish store store at Dublin’s Blanchardstown Shopping Centre. The 2,002 sq ft store features a range of products as well as immersive experiences, including an interactive ‘Pick-a-Brick’ wall and a ‘Build-a-Minifigure’ tower. The openings follows the launch of Lego’s first standalone store in Ireland on Grafton Street in Dublin in August of last year. Sharon Walsh, leasing director at Falcon AM, asset manager for Blanchardstown Centre, said: “It’s great to have the LEGO store now open and we know adults and children alike will be hugely excited to visit the brand’s experiential store. “We are always on the look out for stores offering something different for our customers and the interactive amenities such as the Pick-A-Brick Wall, Build-a-Minifigure Tower and extensive range of sets of products is what makes Blanchardstown Centre such a top destination in the Dublin area.”

Deals

Restaurant giant behind Pizza Express eyes Wagamama owner bid

The owner of Pizza Express is eyeing a bid for the group behind the Wagamama and Brunning & Price chains. Wheel Topco joins a bidding war alongside a vehicle owned by asset manager Apollo Global Management, which previously proposed an offer valuing the company’s share capital at £506m. The bid was recommended to shareholders by Wagamama owner The Restaurant Group’s (TRG) board. TRG confirmed that it had received a request from Wheel Topco for diligence information on the group, and said it would provide this information in line with the City Code on Takeovers and Mergers. However, TRG said that “no certainty that an offer by Wheel Topco will be made for the company, nor as to the terms on which an offer might be made”. TRG operates around 230 restaurants and pubs. In September, it agreed the sale of its “loss making” leisure business, which includes the Frankie and Benny’s and Chiquito chains, to rival Big Table Group for £1.

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Bakery chain set for Harrogate opening

Cornish Bakery is set to open a new store in Harrogate at the end of October. Opening on the 30th, the bakery chain’s new location will occupy a 19th century property formerly home to a chemist and then part of the Ogden jewellery store. The bakery has retained some features of the original building including gilded columns and stained glass windows. Cornish Bakery founder and owner Steve Grocutt said: “We are delighted to be opening our Cornish Bakery in the beautiful spa town of Harrogate. We are on a constant journey to redefine what a bakery is does and what it can be, and we therefore build all our bakeries differently. “We have taken on this historic Harrogate property, uncovering some interesting features within it that will be showcased in the beautiful interior we have created. “We also believe a bakery should be part of the community so our newly employed team will be actively seeking opportunities to work with local organisations in the Harrogate area.”

Deals

Poundland plans huge three-month expansion drive

Poundland is planning to open 75 stores over the next three months, with the discount retailer’s pipeline including both new stores and relocations. The expansion programme is set to be the retailer’s largest ever. Many of the openings come as part of Poundland’s continuing conversion of the 71 Wilko stores it acquired in September. The retailer is set to convert a further 19 stores over the next fortnight, bringing the total to 56 conversions. One of the new stores set to open is at the former John Lewis store in Watford. Austin Cooke, managing director of Poundland, said: “To open 75 stores in the space of a single quarter is nothing short of a super-human effort from every member of the Poundland team. To each and every one of them I say ‘thank you’. “But we’re working at this pace because we’re on a mission – ambitious to grow, create jobs and serve new communities by opening shops customers and communities can be proud of.”

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Wilko stores to return to high streets by Christmas

Standalone Wilko stores are set to make their return to British high streets, as its new owner plans an aggressive store roll-out for the brand. The Range owner CDS Superstores acquired the Wilko brand in September, following its collapse into administration in August. The group is planning to open five new concept locations before Christmas, beginning in Plymouth and Exeter. These will be followed by two further openings in the south east of England and one in the north of England. For the first time, Wilko is also set to open stores in Northern Ireland. Earlier this month, CDS relaunched the Wilko website and introduced the brand’s products to a number of The Range Stores. CDS chief executive Alex Simpkin said: “The public reaction to the loss of Wilko stores was undeniable. It’s clear that there’s a huge love for Wilko and we’ve seen an encouraging demand for the return of its own-brand products. “That’s why we’ve taken the decision to reintroduce Wilko back to many of the high streets and communities that it used to so proudly serve. “Our team from Wilko that joined us through the acquisition has shown true resilience, they’ve set to work to integrate the...

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Asset manager appointed to Tunbridge Wells scheme

Asset management firm RivingtonHark has been appointed to advise on strategic decisions at Royal Victoria Place in Tunbridge Wells. Tunbridge Wells Borough Council – which has owned the freehold of the centre since its construction in 1992 – recently acquired the long leasehold ownership of the scheme from British Land. The purchase of the asset had cross-party support, with the council saying that is committed to ensuring the 475,000 sq ft scheme continues to play a strong role in maintaining the town’s attractiveness for residents, employers, and visitors. Day-to-day management of the scheme – which contains 99 units and is anchored by Fenwick and M&S – will be handled by Knight Frank. Mark Williams, executive director and co-founder of RivingtonHark said: “RivingtonHark is delighted to support Tunbridge Wells Borough Council following this strategically important acquisition. Royal Victoria Place offers huge potential to improve the wider town offering and we look forward to working with the Borough Council in evolving and influencing those plans.” Earlier this year, RivingtonHark was appointed as asset manager on regeneration projects in Shrewsbury and Fareham.

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Cotswolds Designer Outlet: Q&A with the firm leading the development