Posts from October 2023

Restaurant group D&D London is set for further expansion following an imminent £60m sale to Calveton and Breal Capital. A deal is expected to be completed this week, with the group’s co-founder David Loewi set to remain as chief executive under the terms of the takeover. Previously Conran Restaurants, D&D London operates restaurant such as Bluebird Chelsea and Coq D’Argent as well as the South Place hotel in London. Despite the 40 site-strong group closing seven underperforming sites over the last year, it is targeting new openings in Manchester, Leeds, Paris, and New York. D&D London said it had been “consistently highly profitable” but added that recent challenges such as pandemic lockdowns and rail strikes had caused challenges for the business. The group said the deal would deliver a balance sheet recapitalisation of around £40m, allowing it to continue growing. Calveton purchased the Byron Burger chain in 2020, whilst Breal Capital has made a number of acquisitions in recent months including wine bar Vinoteca and breweries Brick Brewery, Brew by Numbers, and Black Sheep Brewery. Brent Osborne, founder of Breal, said the acquisition represents a great platform upon which the group’s restaurants and bars can be taken forward, delivering long-term...

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Roxy Leisure plans new openings within the next two years

Roxy Leisure said it has several new openings planned for the remainder of 2023 and in 2024. The Roxy Lanes and Roxy Ball Room operator – which currently runs 18 sites – is planning to open one more venue by the end of the year and five more during 2024. The group said it is eyeing further expansion within the coming years. During the current financial year, Roxy Leisure has opened sites in Birmingham, Cardiff, Leicester, and Cheltenham. It has also opened its first King Pins bowling concept site in Manchester and has lined up a second opening at Silverburn in Glasgow. Earlier this year, Roxy Leisure confirmed a November opening date for its third site in Liverpool. This comes as the group releases its 2022 financial results, a period during which it saw its turnover reach over £23m. This was an increase of 94% compared to the prior year, and was the first year of trading during which its venues were not closed due to COVID-19 restrictions. The group posted a pre-tax profit of £3m, up from £1.75m in 2021.

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New signings to lead Meadowhall transformation

Sheffield’s Meadowhall shopping centre is set to undergo a transformation, with an expanded Zara store and new signings Frasers and Sports Direct leading the way. The area of the scheme formerly known as Park Lane will be restyled and refreshed over the next 18 months, and has been renamed The Avenue. New additions to The Avenue’s retail offering are also set to be announced, joining brands already at the destination including The White Company, L’Occitane, Carvela, and Kurt Geiger. The changes will aim to reinvigorate The Avenue’s look and feel with new furniture and greenery in the mall spaces, designed to give the centre’s visitors a refreshed experience. There will also be changes to store signages and frontages of all brands with an aim of creating a more modern design. Darren Pearce, centre director at Meadowhall, said: “Meadowhall is already in a great position with lots of amazing brands, but we’re always looking at ways we can give our customers even more to enjoy and experience. The transformation of this area of the centre comes at the perfect time, with the opening of the new Zara and Frasers concept stores on the horizon and even more to come.”

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Shaftesbury Capital welcomes flurry of Covent Garden signings

Shaftesbury Capital has signed 25 retail, hospitality, and leisure brands at London’s Covent Garden over the last six months. The group said the signings demonstrate a vote of confidence in the long-term appeal and prospects of Covent Garden and the wider West End. Included in the signings are 13 new retail brands, including running shoes and apparel brand HOKA and international menswear brand Balibaris, which have opened their first stores in Europe and the West End respectively. In addition, outdoor brand Arc’teryx is set to open a significantly upsized store on King Street, following a successful run at its Long Acre store. Also joining King Street is luxury perfume brand The House of Creed, which will make its Covent Garden debut in November. Also joining the destination is five watch and jewellery boutiques, with OMEGA, Messika, Hublot, and Girard-Perregaux opening in the Royal Opera House Arcade, whilst Tissot will open on James Street. Set to open before Christmas, the signings follow the recent 50% upsizing of watch and jewellery retailer Bucherer 1888 at its flagship Covent Garden store. French womenswear brand Sessùn, clothing brand Gramicci, jewellery brand Mejuri, and leather goods retailer Cambridge Satchel Co. have also signed at the...

Deals News

Landsec opens central london scheme

Landsec’s has opened its Lucent scheme overlooking Piccadilly Circus, which features 20,000 sq ft of retail and hospitality space including a rooftop restaurant. The real estate investment trust said that the 144,000 sq ft office-led development was designed to be a destination in its own right and build on the hospitality and leisure scene in the area. It added that research it had recently conducted that amenities – both inside and outside a building – are one of the most important factors in driving office leasing decisions. The development, which sits behind the Piccadilly Lights, is the third building Landsec has opened this year. Landsec said that the market for well-connected and amenity rich office space in London is competitive, with Lucent adding much needed space to the West End. Marcus Geddes, managing director for workplace at Landsec, said: “Businesses are focused on finding innovative spaces that best serve the needs of their people, meaning that modern office space in prime locations will continue to outperform other markets. The leasing momentum we’ve seen at Lucent is testament to this. “Access to amenity is fast becoming one of the biggest drivers in leasing decisions, with businesses looking for spaces that can...

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Next confirms £115m FatFace takeover

Next has confirmed that it has completed a takeover of high street fashion retailer FatFace in a deal worth £115m. The clothing retailer said Fatface would retain its own management and creative independence. The takeover is the latest in a long line of acquisitions for Next, which has acquired the likes of online furniture retailer Made.com, Cath Kidston, and maternity wear retailer Jojo Maman Bebe since the pandemic. Late last year, Next rescued struggling retailer Joules for £34m, and has recently upped its stake in premium fashion brand Reiss in a deal worth £128m. Next’s chief executive Lord Wolfson has also formed partnerships with Victoria’s Secret and Gap. City sources told Sky News that a deal for FatFace – which trades out of around 180 UK stores – could be announced later this week. FatFace – which was founded in 1988 – trades from around 180 UK stores. It was purchased by private equity firm Bridgepoint in 2007 for £360m from buyout firm Advent International. The retailer came close to a stock market flotation in 2014 but abandoned the idea amid difficult stock market conditions. The business was then taken over by lenders including Alcentra and Lloyds Banking Group in...

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Leisure space up for grabs under Shrewsbury development plans

Leisure space in Shrewsbury could be up for grabs under proposals which are set to be approved by Shropshire Council next week. The project, called Smithfield Riverside, is being led by the council and development partner RivingtonHark. Under the proposals, the area between The Darwin centre, Roushill and the River Severn in Shrewsbury town centre will be redeveloped to create a mix of leisure, residential, office and outdoor public spaces. Plans for Roushill Park – a new outdoor public space – will also be discussed. If approval is given, a planning application for the demolition of the Riverside Shopping Centre and former Riverside medical practice will be triggered, to allow key enabling works and the construction of the park to take place. Earlier this year, Shropshire Council with support from the Shrewsbury Big Town Plan Partnership – secured almost £19 million of Levelling Up Fund money from the Government to further support the town’s regeneration. If the proposals are given the go-ahead, this will begin the process of a public consultation on the emerging masterplan. Ian Nellins, deputy leader of Shropshire Council, said: “We are confident that the developing masterplan, including the demolition of the former Riverside shopping centre, is...

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John Lewis appoints property director

Martin Gafsen has been appointed as director of property at the John Lewis Partnership, charged with the strategy and management of the group’s property portfolio. He joins from the Royal Mail Group, where he is currently interim corporate finance director. He had previously held the role of property and facilities director for 16 years, leading the company’s strategy for its nationwide estate, including facilities management, construction, and development. Gafsen had also spent six years at investment bank Paribas’ corporate finance team. His appointment comes as the partnership undergoes a £500m joint venture with Abrdn to diversify into residential real estate. The group is aiming to deliver 10,000 new homes over the next decade. He succeeds Chris Harris, who announced his departure earlier this year after five years at the group. Martin Gafsen said: “It’s a great privilege to join the partnership, home to two of the UK’s most loved brands. With an extensive and valuable property portfolio, we have an important role to play in ensuring it continues delivering value for the long term benefit of customers and partners for generations to come.”

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Loungers on track to open a record number of sites

Loungers has said it expects to open a total of 34 new sites during the 2024 financial year – a record number for the group. The café, bar, and restaurant operator opened 16 sites during the first half of the financial year across its Lounge, Cosy Club, and Brightside brands, compared to 11 openings during the same period the previous year. The group has opened one site to date in the second half of the year, with another 17 lined up before the year end. This comes as the group releases a trading update for the 24 weeks ending 1 October 2023, a period during which Loungers saw like-for-like sales growth of 7.7%. Compared to the 24 weeks ending 6 October 2019 (pre-pandemic), like-for-like sales were up 25.0%. During the period, the group delivered total revenue of £149.6m, up by 22.3% on the previous year. Loungers said that inflationary pressures are continuing to diminish in line with its expectations. Nick Collins, CEO of Loungers, said: “I am delighted with our strong trading performance across both the mature estate and our new openings. Our consistent sales growth reflects the continued evolution of our offer and the resilience of the UK consumer...

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Sides subscribes for Merry Hill restaurant

Sides, the fried-chicken restaurant concept launched by YouTube giants The Sidemen, is to open at Dudley’s Merry Hill as it targets 200 sites over the next decade. The 2,960 sq ft restaurant will become Sides’ second standalone site in the UK and its first outside of London, offering a range of fried chicken dishes and plant-based alternatives. The 100-cover restaurant will be fitted out in the Sidemen’s signature bold black and white style. The group – which is headed up by the likes of YouTubers KSI, Miniminter, and Zerkaa – launched the concept in 2021. The concept has since garnered somewhat of a cult following and has seen success across various spaces in London. Alistair Winning, asset manager at Sovereign Centros, said: “Sides is fast becoming a UK-wide cultural phenomenon, so it’s great for Merry Hill to have landed a growing brand at such a critical time in their expansion. It is a crucial part of our wider strategy to cater for all our visitors, covering a wide range of demographics, keeping our finger on the pulse of what our community want. The addition of a brand that attracts a younger audience like Sides is evidence of this strategy coming...

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KFC hungry for 500 sites

KFC is actively seeking to open 500 new sites, targeting locations all over the UK. The fried chicken restaurant chain is primarily looking to open new drive-through sites – which make up over half of its estate – but has said it will consider other location types. Ideal drive-through restaurants will be between around 1,500 sq ft and 3,120 sq ft in size, with solus units requiring 0.5 acres of total space. KFC will consider smaller drive through locations with a minimum space of 860 sq ft. The chain also operates two-storey drive-through sites, with a footprint of between around 1,500 sq ft and 2,045 sq ft. As well as roadside locations, KFC is looking to open stores on high streets and in transport hubs. Typical high street stores will be no larger than 2,150 sq ft, whilst KFC’s ‘small box’ stores need a minimum of 1,075 sq ft. This store format looks to fit into smaller spaces with a unique design. Ideal locations for ‘small box’ stores are units in high pedestrian areas with a strong transient population. KFC’s travel hubs – with a minimum size of 860 sq ft – are built in grab-and-go locations, with the chain...

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MINISO to open largest UK store on Oxford Street

MINISO is set to open its largest store in the UK on London’s Oxford Street, as the Chinese lifestyle retailer continues to expand. Signing a five-year lease for a 3,200 sq ft unit, MINISO’s store at 100 Oxford Street will become its 23rd nationwide. The property is located at Oxford Street’s eastern end, which is set to benefit from further growth in parallel with the new line interchange at Tottenham Court Road Station. MINISO follows Claire’s, Ann Summers, and Intimissimi, which have all signed new agreements in the area over the last nine months. The deal also comes after the recent letting at 184-188 Oxford Street to Dr. Martens. The letting was completed by joint agents Savills and Kenningham Retail, on behalf of landlord Lazari Investments. Callum White, central London retail and leisure agent at Savills, said: “Oxford Street is undergoing huge transformation, strengthening its position as a world-class shopping destination. This, combined with improved transportation links, has seen renewed interest among global retailers and we’ve seen a surge in activity as a result.” Sam Foyle, co-head of prime global retail at Savills, added: “This influx of new global brands on Oxford Street continues at pace. In recent months we have...

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Bunsik to debut new model at Westfield Stratford City

Westfield Stratford City is set to open its first Korean restaurant as street food operator Bunsik prepares to launch its first food court concept. Opening in December, the new outlet will be Bunsik’s fourth in London and its fifth overall, having opened a restaurant in Manchester earlier this year. The restaurant will offer a range of street food classics, as well as new vegetarian options and bubble tea options. Last month, it was reported that Bunsik’s owner, Maguro Group, is looking to make the Korean concept its first franchise, with a target of 20 restaurants by 2026. Other brand concepts under the Maguro Group umbrella include Maguro Sushi, Gogi, Bullgogi, Itaewon Burger & Chicken, and Pochawa Grill.

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Sutton seeks town centre regeneration partner

The London Borough of Sutton (LBS) is seeking a partner for its Sutton Civic and Town Centre Regeneration programme. The partnership opportunity consists of four sites in Sutton town centre: St Nicholas Shopping Centre; Sutton Civic Centre; Gibson Road Car Park; and the vacant Secombe Theatre – comprising a total space of 10 acres. Montagu Evans, which is advising the council, says the project has the capacity for 180,000 sq ft of commercial space, a civic hub, and around 1000 homes. The council is looking to increase the economic resilience of the town centre and diversify Sutton’s retail, dining, cultural, and leisure offer. St Nicholas Shopping Centre comprises 434,505 sq ft of space and is the town’s largest single retail asset. In 2021, it was acquired by the council. Proposals for a mixed-use development on the site of the scheme, which include a new civic hub, allow for the release of the current civic centre site for other uses. Councillor Ruth Dombey, leader of Sutton Council, said: “This is a major opportunity to implement the council’s plans for creating a vibrant, sustainable town centre making the most of our town’s transport connections, links to London and status of the world-leading...

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Guildford North Street redevelopment plans given the green light

Proposals to transform a plot of brownfield land in Guildford into a mixed-use development have been given the go-ahead by councillors. The plans put forward by St Edward – a joint venture between Berkeley Group and M&G – look to create over 2.2 acres of public realm space as well as 471 new homes. Included in the proposals is the provision for retail space, cafés, bars, and restaurants. Under the plans, a medical centre will be created, changes will be made to the bus station and the adjacent North Street will be pedestrianised. In January, Guildford Borough Council’s Planning Committee had rejected an earlier version of the proposals, citing a lack of affordable housing. The updated plans, which included a reduction in height for some of the proposed buildings, promised 10% affordable housing. The currently derelict site has so far taken over three decades to be redeveloped, with several previous schemes which have been put forward failing to get off the drawing board. Concerns have previously been raised by Surrey County Council relating to public transport disruption caused by alterations to the bus station. Some members of the public have also been vocal in their concerns over the heights of...

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Gordon Ramsay to open duo of restaurants at 22 Bishopsgate

Celebrity chef Gordon Ramsay is set to open two restaurants at 22 Bishopsgate, the tallest building in the City of London. The two restaurants, Lucky Cat and Bread Street Kitchen, will be spread over floors 58 to 61 of the London skyscraper. It will be the second Lucky Cat site in the capital, following its debut in Mayfair last year. Earlier this year the brand launched a second UK location in Manchester. Bread Street Kitchen currently operates seven UK restaurants. This comes as Gordon Ramsay Restaurants continues to consolidate its UK portfolio. Last month, the site which is currently home to Ramsay’s York & Albany restaurant near Regent’s Park was placed on the market. In addition, Comptoir Group – which operates Comptoir Libanais and Shawa – recently opened at Ramsay’s former Bread Street Café site in Ealing Broadway, whilst Turkish restaurant brand Bursa Kebap Evi acquired Ramsay’s former Street Pizza site in Islington in the summer.

Deals

Pension scheme signs trio of F&B tenants

Pension fund Universities Superannuation Scheme (USS) has signed a trio of food and beverage operators to three of its schemes. Bakery chain Gail’s is set to open in the Oxfordshire town of Witney, taking a 3,200 sq ft unit at Woolgate Shopping Centre. Meanwhile, American restaurant Five Guys is set to make its debut in the Wirral, signing a 15-year lease at Bromborough Retail & Leisure Park to bring the scheme’s occupancy rate to 100%. Finally, Greggs will be opening a bakery at Marsh Mills Retail Park in Plymouth, following the signing of a 10-year lease for a 2,100 sq ft unit. Each of these schemes are owned by USS, which manages total assets of around £75.5bn across a portfolio for over half a million members of the UK’s higher education sector. Stephen Mahon, director of retail at JLL, which manages the assets on USS’s behalf, said: “These deals demonstrate the underlying quality of USS-owned assets across the property portfolio. All three locations are trading well, and the expansion of Gail’s, Greggs, and Five Guys reflects the fact that these sites are ideal for food and beverage tenants.” JLL advises USS across its retail portfolio. FMX advise on Woolgate Shopping Centre,...

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Two petrol stations included in £20m Newcore investment

Two petrol filling stations with electric vehicle charging potential have been purchased by Newcore Capital as part of a number of acquisitions totalling £20m. The two assets, in Southampton and Three Bridges, were acquired for a total of £7.5m. The real estate investment manager, which specialises in social infrastructure, has also acquired an office building with potential for conversion in Thames Ditton, as well as a special educational needs school in Reading for £2.5m. Newcore’s latest acquisitions come as it continues to invest the £190m it raised in May. In July, the investment manager spent £25m on assets across Greater London and surrounding commuter towns. Hugo Llewelyn, CEO of Newcore Capital, said: “These acquisitions represent a continuation of our longstanding investment approach; investing in assets that serve essential societal needs and are thus resilient to the cyclical nature of capital markets, major economic shocks, and the deflationary effects of technological innovation. “Our sole focus on social infrastructure real estate combined with risk-averse capital stewardship has delivered consistently strong returns to our investors – an 11.4% aggregate IRR (internal rate of return) since inception to June 2023, notwithstanding the overall falls in the wider capital markets.”

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Clearbell finalises £174m portfolio sale

Real estate firm Clearbell has announced the sale of the final asset in its mixed-use ‘Amber’ portfolio, following the sale of a Derby-based sports complex. Manchester-based property company Elstar purchased the Pride Leisure complex – home to Everlast Gym, Oxygen Freejumping, We Are Padel, Subway, and Frankie & Benny’s – in an £8.4m off-market deal. The sale marks the conclusion of the portfolio break-up and brings total proceeds – which were spread over 23 separate transactions – to £174m. The Amber portfolio was originally acquired from Abrdn (Formerly Standard Life Aberdeen) in August 2015. It totalled 2m sq ft over 29 assets across the retail, logistics, and office sectors in England and Wales. Clearbell has spent around £10m capex on repositioning the assets before selling, on completion of its asset management objectives. Rob West, managing partner, Clearbell, said: “Completing the final sale of our Amber Portfolio and achieving a £174m realisation figure is a real milestone for us, and a testament to the skills of our investment team throughout challenging market conditions. “We acquired the portfolio in a buoyant market in 2015 before the challenges of Brexit, COVID-19 and the rise of interest rates. Our team successfully navigated these headwinds...

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Treetop Adventure Golf opens at Metrocentre