Posts from March 2024

Aldi has revealed its list of priority locations in London where it is looking to open new stores. The supermarket retailer recently announced its long-term plan to operate 1,500 stores across the UK, with a particular interest in locations within the M25 due to strong demand. As part of a £500m investment to increase its presence in London, Aldi is aiming to open a further 100 stores within the M25. Priority locations include: Aldi is offering a finder’s fee for property agents, who recommend a previously unknown site, of 1.5% of a freehold price or 10% of the first year’s rent for leasehold sites. The retailer is on the hunt for sites at least 20,000 sq ft in size for its standard stores, with around 100 dedicated parking spaces and preferably on a main road with good access and visibility. Aldi is also looking for smaller sites to accommodate its Aldi Local format, which are around 5,000 sq ft in size. Jonathan Neale, managing director of national real estate at Aldi UK, said: “We want to make high quality, affordable food accessible to all, but there are still many areas in the capital that don’t have access to an Aldi...

News Requirements

Next says no plans for expansion despite record profits

Next has said that it does not anticipate “any material net change” in its retail selling space in 2024, despite posting record profits. The retailer – which operated 458 stores as of January – said it will continue to open and close a small number of stores. In 2023, Next renewed 56 leases, with an average lease term of 3.9 years. The retailer said the renewals reduced its annualised occupancy cash costs by £6.7m. The number of renewals was lower than Next’s estimation of 73 given in its half year results in September. The remaining leases are still under negotiation, with eight in the final stages of legal agreements while Next anticipates renewing the remaining nine in the first half of the year. By the end of January, Next’s average lease commitment (weighted by value) was 4.5 years, compared to 4.7 years at the same point the previous year. 50% of its store leases (by value) will expire or break within 3.9 years, and 95% within the next ten years. In 2024, Next expects to renegotiate 74 store leases, and based on its latest negotiations, the retailer expects to reduce its annualised occupancy cash costs by around £3m (-16%). The average...

News

Rocket Padel to serve up at Battersea Power Station

Rocket Padel is set to open London’s first riverside indoor padel courts at Battersea Power Station. It marks a return to the scheme for the operator, after hosting a successful padel court pop-up at The Battersea Games in 2023. The courts will be in place for five years and be located to the east of the Grade II-listed landmark, alongside an immersive exhibition space. Padel is a highly popular, emerging sport which incorporates aspects of tennis, badminton and squash and is played with small racquets without strings. Stockholm-based Rocket Padel will offer community-focused programmes with local youth organisations, charities, and schools, benefitting from free taster sessions at the padel courts. Landscaped public realm will sit alongside the padel courts, adding to the green spaces already available at the riverside neighbourhood, including the six-acre Power Station Park. Sam Cotton, head of asset management at Battersea Power Station Development Company, said: “We are always looking for new ways to activate parts of the riverside neighbourhood as we deliver the Battersea Power Station masterplan and are excited to be working with the Rocket Padel team again to open the first riverside Padel courts in Central London. Rocket Padel are leaders in their field, and...

Deals News

Stack’s Northampton shopping centre redevelopment green lit

Plans put forward by leisure operator Stack for the redevelopment of a shopping centre in Northampton have been approved by councillors. Under the proposals, Market Walk shopping centre will be redeveloped to make way for independent street food outlets, bars, a dedicated space for interactive games, and a main stage for live music and entertainment. The scheme – which Stack acquired in August 2023 – has lain vacant for a number of years. The development is being supported by West Northamptonshire Council, which will provide up to £4.2m worth of investment through its Towns Fund, with an additional £8m investment from STACK. West Northamptonshire Council’s strategic planning committee approved the scheme on Tuesday (19th March). When the scheme’s acquisition was announced, Neill Winch, CEO of STACK, said: “With its prime location in the heart of the town centre, STACK presents an excellent opportunity to create a dynamic and convenient destination for visitors and residents alike.” The development will look to complement other transformations taking place in the town centre, including in Market Square, Abington Street and Fish Street. “The ongoing investment in Northampton’s Market Square to revitalise the town centre aligns perfectly with our vision. By introducing STACK during this...

News

Commercial real estate market boomed in 2023 despite economic challenges

Commercial real estate activity saw a boom in 2023 despite economic challenges, according to a new report. Research from Local Data Company (LDC) and Green Street found a spike in the number of both closures and openings in the retail and leisure sectors, representing significant churn. The year saw increases in interest rates and operational costs, compounding challenges already faced by British businesses and leading to a year-on-year increase in closures of 14%, the report found. However, these closures were somewhat mitigated by an increase in openings of 5% during the same period. The report said that innovative changes of use and retail-to-residential conversions have become increasingly attractive and offer an economically viable option to address vacancies, align locations with current demand, and revitalise town centres. Historical openings and closures across GB, 2013 – 2023 (Local Data Company, Green Street) Retail parks were found to have performed particularly well, continuing the positive trajectory they have recorded over recent years. They were also the only location type to have seen a positive change in 2023, recording a net increase in units of 0.4%. Demand also remained high for retail park units, driving a 1.4% year-on-year decrease in vacancy rate. A further...

News

Finding the right retail property for you

Every business is unique, and for those who want to enter the world of physical retail, finding the right property is no different.

Advice

Manchester’s Printworks unveils £21m transformation

The refurbishment of Manchester’s Printworks leisure scheme has been revealed following a £21m investment. At the centrepiece of the refurbishment is a 10,764 sq ft digital ceiling screen – the largest in Europe – covering the scheme’s internal streets. It is complemented by an interactive gaming screen as well as other features such as newly-designed gateway entrances and public realm upgrades. Following a city-wide competition, a 210 square metre public art piece, created by Alex Sylt, has been installed at the scheme. It was chosen by the people of Manchester in a public vote as well as a panel of judges including Norman Cook, AKA Fatboy Slim. Ben Haller, director at scheme owner DTZ Investors, said: “This transformation is without precedent and is a game changer for the UK leisure sector. We’ve created something unique at Printworks which will continue to entertain domestic and international visitors for years to come. This has only been possible due to the dedication and commitment from a large professional team, overcoming many challenges through the last five years from inception to delivery. “Printworks has been a successful and resilient scheme since opening, over 20 years ago. DTZ Investors is responding to the changes seen in...

News

Moss opens rebranded store at Clarks Village

Moss has opened a rebranded store at Clarks Village outlet centre in Somerset. The menswear brand, which recently dropped the ‘Bros’ from its name, has taken a 1,733 sq ft space in Apple Court, nearby to Vans and M&S. Ten stores opened under the Moss brand in 2023, including a flagship store in Manchester. In 2024, the Clarks Village store, alongside an opening in Edinburgh, bring the brand’s UK portfolio to 110 stores. Chris Davis, centre director at Clarks Village, said: “Moss is a fantastic addition to Clarks Village, further enhancing the outlet’s menswear range alongside our 90 designer and high-street brands with discounts of up to 60 per cent off RRP. Moss is the outlet’s first new brand to launch in 2024 and follows hot on the heels of the revamp of Cadbury’s. “Looking ahead, guests have a lot to look forward to at Clarks Village this year from exciting new brands and store revamps to exclusive VIP shopping dates and a line-up of events.”

Deals

Double deal secured at Milton Keynes’ Midsummer Place

Ellandi has secured a major double deal at Midsummer Place in Milton Keynes, with Sports Direct and Lane7 set to join the scheme. The 50,000 sq ft Sports Direct store will offer a range of footwear, clothing, and equipment, and feature more brands from the Frasers Group with concessions from USC, Evans Cycles, and GAME. Meanwhile, bowling operator Lane7 will take 40,000 sq ft for its 18th opening in the UK. Both brands will be taking space in the former three storey Next Beauty & Home unit, with Lane7 occupying the basement floor. Simon Anderson, asset management director at Ellandi, said: “Securing both Frasers Group’s Sports Direct, and Lane7 for Midsummer Place demonstrates both confidence in the market as well as highlighting the opportunity at Midsummer Place. These brands will complement the recent re-development of The Boulevard F&B quarter. We are transforming the centre, and in addition to the physical changes we are curating a very attractive tenant mix. This brings us one step closer to realising our vision to create a high-end, quality destination.” These signings follow the recently completed development of the scheme’s boulevard which has seen the opening of eight independent luxury cabins to create a food...

Deals News

Merry Hill to welcome Midlands-based burger restaurant

Sovereign Centros from CBRE has announced that Dudley’s Merry Hill is set to welcome Midlands-based smash burger brand Boo later this spring. The 2,000 sq ft restaurant, located adjacent to Wingstop, will join Merry Hill’s leisure quarter. Anchored by Hollywood Bowl, the quarter is part of a repositioning of the mall by Sovereign Centros which aims to create a hub for family-friendly leisure and dining. Since making its debut in Leicester in 2017, Boo has gone on to open more sites across the UK and globally, opening its first overseas restaurant in Abu Dhabi’s Yas Mall last year. Boo Merry Hill will offer a range of burgers with various toppings, as well as sides such as fries and wings, and drinks including milkshakes and coffees. Alistair Winning, asset manager at Sovereign Centros from CBRE, said: “Given the importance of Merry Hill to its community, as the premier regional mall in the West Midlands, we’re always looking to support native brands, and locally-founded Boo opening here is evidence of that. We have made great strides in diversifying our dining options at the destination, and Boo will bring yet another top-tier fan-favourite restaurant to complement our other recent additions, placing them amongst...

Deals

Abercrombie & Fitch to fill retail space at Hines’ 325 Oxford Street

Hines has secured a deal for Abercrombie & Fitch to take the entire retail space at its mixed-use 325 Oxford Street building. The fashion retailer has agreed a multi-year lease to occupy the ground and first floors in the building, and is set to move in and begin trading in early 2025. Located at the corner of Oxford Street and Bond Street, 325 Oxford Street was acquired on behalf of the Hines European Value Fund 2 in March 2020. In addition to retail, the building also incorporates 31,000 sq ft of newly-developed office space arranged over the second to seventh floors which is now fully let to a range of occupiers following a major refurbishment and extension. Jake Walsh, managing director at Hines UK, said: “Securing such a high profile, iconic brand as Abercombie & Fitch is a real coup for Hines and represents a fabulous addition to Oxford Street retail offering. It is an exciting time for London’s most famous shopping street as it is redefining itself as a go-to retail, leisure and office destination and we are proud to be contributing to its dynamic evolution.” Scott Clarke-Bryan, managing director of EMEA at Abercrombie & Fitch, added: “We see...

Deals News

Ted Baker calls in administrators

Store closures and job losses are expected at Ted Baker after it has emerged the retailer is set to appoint administrators. No Ordinary Designer Label (NODL), which trades under the Ted Baker brand, filed a notice of intention to appoint Teneo Financial Advisory on Tuesday, Sky News has reported. Although jobs are likely to be lost, no redundancies would be announced on the first day of the insolvency process, one source said. Since the retailer’s founder, Ray Kelvin, left the company in 2019 amid claims of inappropriate behaviour, it has issued a number of profit warnings and went into the COVID-19 pandemic from a difficult financial position The retailer was de-listed from the London Stock Exchange in 2022 after it was bought by ABG for about £210m. A subsequent brand licensing partnership with Dutch company AARC was also recently abandoned. ABG’s chief strategy and transition officer, John McNamara, said: “Despite our tireless efforts, the damage done during a period under AARC in which NODL built up a significant level of arrears was too much to overcome. “We wish that there could have been a better outcome for the Ted Baker employees and stakeholders. It is hopefully some consolation for customers...

News

Landsec offloads Shepherd’s Bush shopping centre for £60m

Landsec has sold the West 12 Shopping Centre in Shepherd’s Bush, London to a private investment vehicle for just under £60m, CoStar reports. The site had been earmarked for a £340m residential development, with plans to build 700 homes. The asset comprises 300,000 sq ft of retail and leisure space, and is supplemented by a 128-room Ibis hotel and a 12-screen Vue cinema. Located adjacent to the Westfield shopping centre, the scheme is let to occupiers such as Sainsbury’s and Lidl and produces an annual net rental income of around £4m. Purchaser West 12 Investments has appointed Tandem Property Asset Management and Holmes Property Partners to provide property and asset management services. Savills advised West 12 Investments, whilst Knight Frank advised Landsec.

Deals

GCW appoints partner to head up people and culture

GCW has announced the promotion of Philippe Micheal to the position of equity partner, where he will oversee the firm’s people and culture, including its new environmental, social, and governance (ESG) agenda. Having joined GCW in 2013, Micheal has worked at every level of the business and becomes the sixth equity partner at the firm, which this year celebrates its 35th anniversary. Duncan Kite, GCW joint managing partner, said: “I’m very excited about Phil’s well-deserved promotion to GCW’s partnership. His journey with us from surveyor to partner demonstrates our ongoing commitment to nurturing and developing talent and will assist in continuing to provide a first-class service offer. Alongside the strategic advice we provide to our clients, we want to utilise our platform to better promote ESG and sustainability principles in the commercial property sector.” Micheal said: “GCW is already recognised as one of the more progressive advisors in the sector and our new Sustainability Action Plan outlines our commitment to putting sustainability, in its widest sense, centre stage.” GCW’s Sustainability Action Plan, which has been spearheaded by Micheal, was published in January, and its principles will form an integral part of his role within the business. The plan covers issues including purpose,...

News

Lidl sells surplus gym site in Northampton

AMK2 Real Estate has acquired a former purpose-built supermarket building in Northampton, currently let to a gym operator, from Lidl for an undisclosed sum. The 16,963 sq ft unit is located on a 1.26-acre site on Gambrel Road and occupies a roadside position alongside Sixfields Retail Park. Nearby occupiers include Sainsbury’s, Next, M&S, Boots, TUI, Poundland, Costa and Lidl. The building, which has 75 parking spaces, is currently let to The Gym Group on a 15-year lease. Chris Gaskell, partner at Johnson Fellows, which works alongside Lidl on acquisitions and disposals, said: “We are working hand in hand with Lidl to identify sites for new supermarkets, while also disposing of land and property that is no longer required. “The site at Gambrel Road, which has an excellent occupier, was surplus to requirements and we are therefore delighted to announce that it has been acquired by AMK2 Real Estate.” Advised by Johnson Fellows, Lidl also recently completed the sale of one-acre of development space in Birmingham. AMK2 Real Estate was represented by TDB Real Estate.

Deals

ESTAMA appointed to manage three shopping centres

ESTAMA UK has won contracts to manage three shopping centres, located in Northamptonshire, Cheshire, and County Durham. Located on the edge of Northampton, Weston Favell Shopping Centre comprises 330,000 sq ft of retail space across 89 units. It is anchored by a 153,455 sq. ft Tesco food store, alongside other major retailers including McDonald’s, Costa, Burger King and Poundland. The grocery-anchored Birchwood Shopping Centre is located five miles from the centre of Warrington in Cheshire. The scheme extends to 372,917 sq. ft across 63 units and is anchored by a 108,814 sq. ft. Asda food store. Other key retailers include Aldi, Costa, Home Bargains, McDonald’s, Sports Direct, and Subway. Byron Place Shopping Centre is located in Seaham, south of Sunderland in County Durham. It has 21 units across 115,378 sq. ft and is anchored by a 42,000 sq. ft Asda food store. Other key retailers include Subway, Home Bargains, B&M and Costa. Poundland has also just opened a new 22,000 sq. ft store. The three centres have a combined annual footfall of over 11 million people. Ross Campbell, director and head of asset management at ESTAMA UK, said: “We are thrilled to have been selected to take on the asset...

News

Swiss Life puts Reading retail park on the market for £27.2m

Swiss Life Asset Managers has put Brunel Retail Park in Reading on the market with a price tag of £27,185,000, representing a net initial yield of 6%. The 117,016 sq ft asset has a total site area of 8.3 acres and is supplemented by a 401-space car park. Tenants include Home Bargains, Halfords, Pets at Home, B&M, Dreams and The Range. Two additional units are also under offer to Starbucks and Subway. Located approximately midway between junction 11 of the M4 and Reading town centre, Brunel Retail Park produces an average rent of £14.88 per sq ft and has a weighted average unexpired lease term (WAULT) of c.11.9 years. The freehold site has potential for an alternative residential or industrial uses in the longer term. In July 2021, planning permission was obtained to create a 90,000 sq ft logistics unit. Interest has also been expressed by electric vehicle charging point operators to install charging points adjacent to the Halfords unit, with the purchaser able to progress this interest upon completion of the transaction. XProp has been appointed to market the asset.

News

Hobbycraft lays out requirements as it targets seven new openings in 2025

Hobbycraft has laid out its criteria for new stores, as it looks to continue expanding in 2024 and through to next year. The arts and crafts retailer – which operates 120 stores in the UK – is set to open five new stores this year and is targeting a further seven in 2025. Hobbycraft is looking for Class E units with a ground floor area of between 5,000 and 10,000 sq ft, either on retail parks or as standalone units with car parking. Target locations include: Park Place Retail has been retained by Hobbycraft to find suitable locations.

News Requirements

Green light for Leeds shopping centre PBSA redevelopment

Plans for the redevelopment of a shopping centre in Leeds to create purpose built student accommodation (PBSA) have been granted planning approval by councillors. Under the proposals, put forward by property investment and asset management firm Tri7 in conjunction with student accommodation developer Fusion Group, The Core Shopping Centre will make way for 807 student bedrooms across three buildings. The development will also include 36,000 sq ft of retail and commercial space on the ground level, including two new arcades connecting Lands Lane to Albion Street. Tri7 acquired The Core Shopping Centre in July 2021. Dan Green, partner at Tri7, said: “This development in the beating heart of the city centre will provide a benchmark for student living in Leeds and beyond. It will deliver best-in-class student accommodation, surrounded by shops, cafes, restaurants and bars, that also improves the public and community space around it. “With significant capital to deploy on bed-led regeneration opportunities in town and city centres across the UK, we’re eager to explore similar such mid- and long-term acquisitions, particularly where they could involve achieving complex planning permissions, in order to drive value to our investors.” Paul Miles, construction director at Fusion Group, added: “Achieving planning permission...

News

Bensons for Beds targets 15 stores this year