Posts from January 2024

Tri7 has acquired the Portswood Shopping Centre in Southampton for c.£10m from its previous owner, Portswood Centre Ltd. The 28,315 sq ft asset is located north of Southampton City Centre and is a short distance from St Denys train station and the University of Southampton’s Highfield Campus. Extending over two acres, the scheme is fully let to 10 tenants including Iceland, Pizza Hut, and The Broadway Pub. The acquisition adds to Tri7’s portfolio of retail-led developments, which includes Leeds‘ The Core Shopping Centre and Mecca Bingo in Haringey, London. Samuel Castle, partner at Tri7, said: “The Portswood Shopping Centre offers the exact type of opportunity on which we thrive: an income-producing scheme that benefits from long-term development potential. As we continue to enact our city centre regeneration project acquisition strategy, we have our eyes on a number of sites across the UK and are confident that, for an opportunistic investor and an asset manager with an innate understanding of how to unlock value, there are a host of opportunities to be pursued while much of the rest of the industry adjusts to wider economic conditions.”

Deals

Huddersfield Wickes handed £3.96m price tag

A Wickes store in Huddersfield has been placed on the market with a price tag of £3.96m. The purpose-built, freehold retail unit on Manchester Road has been home to Wickes since its construction in 1995, and is let to the retailer until June 2030. The unit has a current passing rent of £326,704 per annum, reflecting a rent of £11.50 per sq ft. The site’s lease was regeared in 2020 to provide a new 10-year term, with an upward only open market rent review due in June 2025. The property benefits from a 138-space car park and is the only and dominant DIY provision on the south side of Huddersfield. Mark Powell and Fraser Yarnold of XPROP have been appointed to market the property. XPROP said the £3.96m price tag reflects a net initial yield of 7.75%.

News

Greggs targets over 140 new stores following record year

Greggs has said it expects to open between 140 and 160 new stores in 2024, following a record year for new openings. The bakery chain opened 220 stores in 2023, with 33 closures and 42 relocations resulting in a net 145 new shop openings. By year end, Greggs had a total trading estate of 2,473 stores. Greggs had previously set a long-term target to operate up to 4,500 UK stores. The chain also revealed that its total sales in 2023 were up by 19.6% to £1.8bn, and reported “further strong trading” throughout the fourth quarter. Greggs’ company-managed shop like-for-like sales were up by 13.7% and 9.4% for 2023 and the fourth quarter respectively. Greggs said the strong like-for-like performance reflected the popularity of its brand as it continues to develop its product range and increase its accessibility through digital channels and extended trading hours. By the year end, the chain had rolled out its delivery service to 710 shops with Uber Eats, alongside its existing partnership with Just Eat. Roisin Currie, Greggs chief executive said: “2023 was a year of further progress by Greggs. I am proud of our teams, who did a fantastic job serving more customers as we continue...

News

Liverpool ONE begins 2024 with strongest start in over five years

Liverpool ONE has reported a 10% increase in visitor numbers during the first week of January compared to 2023, marking the destination’s strongest start to the year since 2018. Scheme owner Grosvenor has reported that it already expects 2024 to top last year’s results. This follows Liverpool ONE’s busiest ever Christmas in 2023, with sales and visitor numbers hitting all-time highs. During the festive period, the destination welcomed over 3.9m visitors, representing an increase of 1.9% compared to 2022. These figures are in contrast to the national picture, which shows a drop in footfall of 3.5% across the UK’s retail hotspots according to ShopperTrak footfall benchmark data. This places Liverpool ONE ahead of the rest of the UK by five points. Year-on-year sales during the festive period also increased by 5.3%, bolstered by entertainment, beauty, and menswear the most popular types of purchase. Over the course of 2023, a total of 25 brands arrived at Liverpool ONE taking a total of 275,000 sq ft of space. Highlights included the openings of Gravity MAX and M&S, both of which taking space in the former Debenhams department store. Other milestone openings included the launch of Goldsmiths’ largest showroom to date and the...

News

Swedish footwear brand signs for Covent Garden

Swedish footwear brand Axel Arigato is set to open a new flagship store at Shaftesbury Capital’s Covent Garden estate in 2024. Taking a 2,500 sq ft store on Earlham Street in Seven Dials, Axel Arigato will offer a range of womenswear, menswear, and accessories. The Covent Garden store will also become Axel Arigato’s second within the Shaftesbury Capital portfolio, joining its inaugural location on Broadwick Street in Soho. In line with the brand’s store design across Europe, the store will be an open gallery-style space designed to allow products and collaborations to take centre stage. The retailer will join a number of other lifestyle and footwear brands at Covent Garden, including recent arrivals HOKA and GANNI, as well as Arc’teryx which will be opening its upsized store on King Street in the spring. Michelle McGrath, executive director of Shaftesbury Capital, said: “Curating a destination that offers a comprehensive line-up of the best-in-class experiences, from both British and international brands, forms a key part of our retail strategy for Covent Garden and its Seven Dials neighbourhood. We are therefore delighted to have welcomed a young and dynamic concept like Axel Arigato. A forerunner in innovative footwear, leading with an emphasis on...

Deals News

Rosa’s Thai cooks up Guildford opening amid expansion

Rosa’s Thai is set to open in Guildford as the Thai restaurant concept looks to continue its UK expansion. Opening on 5 February and ‘soft-launching’ from 23 January, the Guildford restaurant will join the chain’s existing 38 locations across the UK. The restaurant on Friary Street will accommodate 70 covers, with outdoor space available for a further six diners. The building will be decorated with floor-to-ceiling windows while planters and feature lighting will look to create a warm and vibrant ambience. The Thai food concept is also planning between eight and 10 further site openings in 2024. In September, Rosa’s Thai opened its first restaurant in Scotland. Rosa’s Thai CEO Gavin Adair said: “I’m so pleased to be opening our doors in Guildford. It feels like somewhere we should already be! We can’t wait to get our woks fired up and start serving our amazing curries, noodles and stir-fries. What a great way to start the year. Sawaddee Bhee Mai Guildford!” P-THREE represented Rosa’s Thai, whilst Omni Retail acted for the landlord.

Deals News

Retail sales increase in 2023 despite sluggish end to the year

Retail sales increased year-on-year in 2023, despite a decline in growth over the festive period. In 2023, UK total retail sales increased by 3.6% from 2022, according to data from the BRC-KPMG Sales Monitor. During the year, food growth was 8.1% while non-food sales declined by 0.1%. In December, total retail sales increased by 1.7%, compared to an increase of 6.9% in December 2022. This was below the three-month average growth of 2.3%, and fell short of the 12-month average growth of 3.6%. During the three months to December, food sales increased by 6.8% on a total basis, whilst non-food sales decreased by 1.5%. On a year-on-year basis, food sales were in growth whilst non-food sales were in decline during the month. Helen Dickinson OBE, chief executive of the British Retail Consortium, said: “The festive period failed to make amends for a challenging year of sluggish retail sales growth, as weak consumer confidence continued to hold back spending. The post-Christmas sales were unsuccessful in enticing spend in areas such as furniture and homeware, with households remaining cautious about making larger purchases. Sales saw a slight uptick in the week leading up to Christmas as consumers scrambled to purchase last minute...

News

Columbia Threadneedle acquires Rotherham retail park

Columbia Threadneedle Real Estate, the real estate investment and asset management arm of Columbia Threadneedle Investments, has acquired Parkgate Shopping Park in Rotherham for an undisclosed sum. The 406,000 sq ft asset is one of the UK’s top five largest retail parks, sitting on a 40.6-acre site with around 2,250 free parking spaces. Anchor tenants at the scheme include Primark, Currys, Next, Poundland, Wren, and Matalan, as well as an adjacent Morrisons supermarket. Parkgate Shopping Park welcomes over 8 million visitors a year and is set to benefit from the arrival of a new 45,000 sq ft owner-occupied Frasers Store in Q1 and the completion of the spine road extension to link it to the A6123 in May. A spokesperson for Columbia Threadneedle Real Estate said: “We are delighted to add Parkgate to our extensive retail warehouse portfolio that now totals some 10 million square feet. By utilising our existing strong retailer relationships, we see real opportunity to maximise Parkgate’s potential both for retail and restaurant operators and customers, taking its place as a leading shopping and leisure destination befitting of its scale and regional dominance.” ESH acted for Columbia Threadneedle, whilst Staunton Whiteman represented the vendor.

Deals News

Cardiff-based wrap company seeks South West expansion

Cardiff-based food-to-go company Magic Wrap is looking to expand, targeting two new sites across Wales and the South West in 2024. Founded in 2008 by Ed and Claire Jones, Magic Wrap was created with an objective to provide a healthier alternative for on-the-go customers, in contrast to traditionally high-fat, high-carb, and high-calorie options. The operator – which currently has two locations in Cardiff’s Queen Street and Mermaid Bay – is now looking to Bristol, Bath, Cheltenham, Exeter, Gloucester, and Reading to open its next sites. Magic Wrap will also consider opening further sites in Cardiff if they are close to the train station. Ideal sites will have a minimum size of 500 sq ft on the ground floor, and will be located in high street locations with heavy footfall. The operator has a preference for units in close proximity to large offices and populated workplaces. Outdoor seating is desirable. Owen Cahill of EJ Hales has been appointed to find suitable locations.

Requirements

B&M “on track” to open 76 new stores in 2024

The parent group of B&M has said it is “on track” to open 76 gross new stores in the 2024 financial year. This includes 45 B&M stores in the UK and 20 Heron Foods openings. This comes as the variety goods retailer releases a trading update for the third quarter of the 2023 financial year. During the period – which comprised the 13 weeks between 24 September and 23 December 2023 – B&M’s UK division recorded revenue of £1.35bn, a year-on-year increase of 3.7%. In the year-to-date, B&M UK has seen revenue of £3.4bn, up 6.3% against the same period the previous year. During the 14 weeks to 30 December, B&M UK like-for-like revenue growth was 1.2%. The retailer said this was a strong quarter given prior year comparatives, with performance driven by positive transaction numbers. Alex Russo, chief executive, said: “The performance across the Golden Quarter has been pleasing, with strong operational execution across the three businesses. Our strategy remains unchanged – we are an everyday low-price discounter with a laser-focus in keeping excellence in retail standards and our costs the lowest. This allows us to provide our products at the best price to all customers – many of whom...

News

Turkish jeweller Kismet signs for Bond Street store

Turkish fine jeweller Kismet by Milka is set to launch its 16th international store after agreeing a deal to open on London’s Bond Street. Taking a 10-year lease, the retailer has agreed to a 1,100 sq ft unit set over ground and basement floors at 110 New Bond Street. Kismet’s neighbours will include Georg Jensen, Diptyque, Canali, Opera Gallery and Dsquared. Savills acted on behalf of the private, Hong Kong-based landlord, whilst JMB Consulting represented Kismet by Milka. Anthony Selwyn, co-head of global retail at Savills, said: “It is terrific to see another quality new entrant to London’s premier luxury location. This part of Bond Street is taking shape at great pace, with numerous brands recognising that the extension of prime pitch is seriously establishing itself.” Josh Blatt, director at JMB Consulting, added: “After an extensive search we’re thrilled to have advised Kismet by Milka on the acquisition of 110 New Bond Street. This strategic move marks a significant milestone for the brand, providing an unparalleled opportunity to further showcase their exquisite collections to an international audience.”

Deals

Hotel operator seeks West End location

A hotel operator is seeking locations in London’s West End to open a new site. Ideal locations will be at least 30,000 sq ft in size with a preference for locations ranging between 50,000 and 100,000 sq ft. The operator is looking for existing hotel buildings, or site with other uses such as offices which are suitable for conversion. Freehold leases are preferred, however the operator will consider long lease or management contract arrangements. Richard Wassell of Twentyretail has been appointed to find suitable locations.

Requirements

LondonMetric acquires Next warehouse for £21m

LondonMetric Property has completed the acquisition of a Next warehouse in Doncaster for £21.2m. The property company said the acquisition represents a net initial yield of 6.3%. The 264,000 sq ft logistics warehouse is let to Next for a further 13 years at a rent of £1.42m per annum, equating to around £5.37 per sq ft. The lease benefits from annual fixed rental uplifts of 2.5% which will increase the purchase net initial yield to 7.1% within three years. LondonMetric has also sold an 18,000 sq ft office investment in Chiswick for £7.4 million. The multi-let office was acquired as part of the group’s A&J Mucklow takeover in 2019. Andrew Jones, chief executive of LondonMetric, said: “As the UK economy reaches an inflection point on both inflation and interest rates, we are increasingly attracted to triple net leased assets that have strong income compounding characteristics and certainty of growth. “We have continued to successfully exit non-core assets and reinvest into sectors that benefit from structural tailwinds. We have now, based on purchase value, disposed of 39% of the Mucklow portfolio.” LondonMetric was advised by GV & Co for the warehouse acquisition.

Deals

Everyman chosen to anchor The Brentford Project

Luxury cinema concept Everyman has been chosen as the leisure anchor at The Brentford Project. The operator has agreed to open a 10,973 sq ft space at 3 West Bradbury Yard in the centre of the scheme. A spokesperson for Everyman said: “We are delighted to be joining the Brentford Project as the leisure anchor. Ballymore’s vision to create a thriving community, in which the retail and leisure offer serves both the residents and the wider area, reflects our own lifestyle approach. We are looking forward to bringing the Everyman experience to Brentford.” Richard Pearce, senior development manager at property developer Ballymore, added: “The signing of Everyman at the heart of the Brentford Project matches our intention to provide a day-to-evening offer for our community and visitors alike. The brand is perfectly aligned to Ballymore and the other businesses opening at The Brentford Project, supporting and nurturing independent and unique retail and dining brands. Everyman brings us one step further to completing our long-term community vision and forms a key element to the final phases of the riverside development.” The news follows the recent signing of independent gift shop Mother Rugger at The Brentford Project, which opened a 1,116 sq...

Deals News

Mamas & Papas to open concessions in expansion drive

Mamas & Papas will launch ten new concessions within Marks & Spencers and Next stores this year, as the parenting retailer looks to expans. This marks a change of fortune for the retailer, was purchased by Bluegem in 2014 and has since undergone a number of restructuring. Mamas & Papas currently operates 10 concession stores in Marks & Spencer and Next. The retailer is also planning to expand across Indonesia, Thailand, and Spain, following its debut in Australia last year. Mamas & Papas CEO Nathan Williams told The Mail on Sunday: “We’re very much on track for a record-breaking year. We’ve had a phenomenal golden quarter of peak trade.” This comes after the retailer recorded an increase in underlying profits of 50% during the 13 weeks to 31st December, with underlying sales up by 7%. The company also enjoyed a record Black Friday, with year-on-year sales increasing by 18% over the three-week period.

News

Travelodge continues expansion with purchase of 66 hotels