Posts from March 2024

Chinese ecommerce group JD.com will not make an offer for Currys, effectively signalling an end to a bidding war for the electronics retailer. In February, the group confirmed that it was in the preliminary stages of evaluating a possible cash offer for the entire share capital of the retailer, joining investment firm Elliott Advisors in a potential takeover battle. On Friday, however, the group declared that it does not intent to make an offer for Currys. On Monday, Elliott Advisors – which also owns Waterstones – pulled out of the bidding war for the retailer just weeks after submitting a bid worth £750m. In January, Currys said that sales had declined 3% over the key Christmas period, but had increased its profit forecast for the year due to higher cost-saving measures and profit margins.

News

Cape Town-based property fund acquires North East retail park

The UK branch of South African property fund FPG has acquired the second phase of Washington Retail Park, near Sunderland, in its first purchase of the year. The retail park – which comprises 122,322 sq ft of space and features a 678-space car park – has been acquired from Peel Retail and Leisure. Watling Real Estate advised FPG. Ian Whittaker, director at Watling Real Estate, said: “Located prominently on Spire Road just off the Sunderland Highway, the park boasts an impressive tenant line up, being anchored by a Lidl food store which accounts for over 50 per cent of the income. “Greggs, Food Warehouse and One Below make up the remaining tenant line up which has a very healthy 14 year WAULT. The current income is circa £600,000, with additional income available from electric vehicle chargers. “FPG are a fantastically reliable buyer and when they agree to something you have the confidence that it will be a smooth and timely transaction. FPG remains on the hunt for new stock for the remainder of the year, so we would be pleased to receive further approaches on suitable sites.” Savills advised Peel Retail and Leisure on the sale.

Deals News

Revo: Four things to consider when planning your B Corp journey

Recently, Revo hosted a webinar: ‘Charting a Purposeful Path: A Dialogue with B Corp Members on the Journey to Sustainability?’ attracting more than 60 participants. The session was moderated by Vivienne King, head of real estate social impact at The Good Economy, and sought to explore the importance of B Corp to businesses in the retail-focused real estate community. Almost 2,000 UK businesses are now certified B Corps with over 60,000 employees, although in the wider context of some 5.5 million businesses nationally, the potential for attracting new members is clearly enormous. James Kelly of B Lab UK pointed out that nearly four out of five (78%) of people “believe that business should have a legal responsibility to the planet and people, alongside maximising profits.” Robin Heap, CEO and founder of Zest, suggested that retail – just like any other sector – needs to be aligned with the aims of the planet and the environment and embody those concepts which people in the community want to embrace. Mark Robinson, co-founder of Ellandi, observed that B Corp membership is effectively a long-term investment that does not gives short-term returns. It is not a particularly straightforward certification to achieve; however, for those...

News

Michelin-starred chef opens French bistro in Chelsea

The Sloane Stanley Estate has announced that Josephine, the new French bistro concept by Michelin-starred Claude Bosi and Lucy Bosi, has opened in Chelsea. Located at 315 Fulham Road, the 2,633 sq ft restaurant has space for 76 guests, and includes a semi-private dining area able to seat up to 20 diners. The new concept pays homage to the Bosi family, offering classics such as French Onion Soup, Oeuf en geleé, Salade Lyonnaise, and Leek Vinaigrette, as well as a selection of wines. The debut location looks to evoke the character of iconic Lyonnaise restaurants, with antique mirrors, warm candelabra lighting, and small bistro tables adding a touch of elegance. Sloane Stanley said the opening represents the appeal of its estate to leading restauranteurs and the wider charm of Chelsea as a destination for independent concepts and debuts. Hannah Grievson, property director at Sloane Stanley, said: “Josephine is a fantastic addition to Fulham Road and highlights the neighbourhood’s appeal in attracting world-class chefs and entrepreneurs. Its contemporary and high-quality fit-out and menu mirrors the exceptional range of tenants we have across our portfolio on the Sloane Stanley Estate.” This announcement follows other recent F&B entrances to Sloane Stanley’s Fulham Road,...

Deals

South London retail park handed £56.1m price tag

A retail park in Colliers Wood, South London has been placed on the market with a price tag of £56.1m, reflecting a net initial yield of 6.5%. Located 8 miles from Central London, the Tandem Centre comprises 117,752 sq ft of space and is part of a wider regionally dominant retail centre. The scheme is anchored by Lidl with a lease expiry in 2045 and five-yearly retail price index-linked rent reviews. Recent rent lease extensions have also been signed with Next, Tk Maxx, and Clarks. The Tandem Centre has an expected WAULT to expiry of circa 8.3 years, following likely transactions with WHSmith, JD Sports, and Sports Direct. Other tenants include Homesense, Starbucks, and Nando’s. The scheme produces a rental income of £3,892,542 per annum, assuming a rental guarantee on Unit 5B, equating to an average of £31.15 per sq ft. It is located adjacent to a 130,000 sq ft M&S store, a 105,000 sq ft Sainsbury’s supermarket, and the 67,333 sq ft Priory Retail Park. Park Place Retail has been instructed to seek offers for the asset.

News

Real estate markets past “peak uncertainty”, says Savills boss

Most real estate markets “appear to be past the moment of peak uncertainty”, the chief executive of Savills has said. Mark Ridley said there are some early signs of underlying market improvements, which should set the course for a broader recovery during the second half of the year and into 2025. This comes as the real estate services company releases its final results for 2023, during which it recorded a fall in group revenue of 3% to £2.24bn. The group’s underlying pre-tax profit also declined, falling 42% to £94.8m. Savills said its management and consultancy businesses performed well, with revenues increasing by 11% to £899.5m and 4% to £459.8m, respectively. In the firm’s UK commercial business, revenue declined by 15% in 2023 to £100.6m, which Savills said reflected fewer transactions in investment markets and more subdued leasing activity. The group said that just over £39bn of commercial property investments were traded in the UK in 2023, which was 41% lower than the previous year and 38% down on the five-year average. All commercial property sectors experienced lower investment volumes in 2023 compared to 2022, with the smallest being in retail (-12%). In November, Savills completed the acquisition of Central London-based retail...

News

John Lewis returns to profit

The John Lewis Partnership has returned to profitability in the 2023/24 financial year, recording a profit before tax and exceptional items of £42m. This was an improvement of £120m compared to a loss of £78m recorded the previous financial year. Profit before tax at the retail group was £56m, up from a loss of £234m in 2022/23. However, for the third time in four years, John Lewis has not awarded a bonus to its members of staff – called ‘partners’ – instead opting to increase overall pay by £116m in 2024, a record investment for the retailer. Partnership sales also increased year-on-year by £176m to £12.4bn, whilst total revenue was up by 2% to £10.8bn. John Lewis said its cash generated from operating activities improved by £201m to £433m, mainly due to improved profit. The retailer said this allows it to step up investment in transforming the business, increasing investment levels from £312m this year to £542m in 2024/25. The group also raised additional funding last December of £260m through a combination of sale and leaseback of 11 Waitrose shops, as well as a new term loan. At Waitrose, sales increased 5% to £7.7bn, with a trading operating profit of...

News

Atria Watford fully let with Hobbs arrival

Atria Watford is now fully let following the opening of womenswear brand Hobbs. Taking a 3,300 sq ft unit in Charter Place, the fashion retailer’s store offers a range of clothing across everyday, workwear, and occasions. Steve Gray, head of European retail asset management at Global Mutual, said: “Hobbs is a great addition to Atria Watford and we are excited to see the new store welcome shoppers. The brand joins a string of new names at the centre and its offer aligns exactly with what we want to give our visitors – quality, choice and excellent in-store experiences.” Other retailers at the Watford scheme include Next, which operates a 94,000 sq ft store in the former Debenhams department store, and Zara, which recently opened an upsized 43,000 sq ft store. Other tenants include Mango, Uniqlo, and Hollister. It was also recently announced that four retailers – B&M, Choice Discount, and a combined store for Peacocks and Bonmarché – will take space in the former John Lewis store at Atria, joining Dunelm and Poundland.

Deals News

Teesside Park: British Land’s “winning” retail park format in action

As the retail landscape has evolved over the past few years, retail parks have become an increasingly attractive investment, or as British Land boss Simon Carter previously put it: “the winning retail format”. But what drives their success? For Grace Waterworth, asset manager at British Land, retail parks offer customers and businesses the three ‘A’s – affordability, adaptability, and accessibility. Waterworth is part of the team behind Teesside Park in Stockton-on-Tees, an asset which she says is a “prime example” of offering these three ‘A’s: “The format is incredibly attractive to retailers due to lower occupational cost ratios than high streets or shopping centres, driven by lower rents, rates and service charges and strong store turnover”, she says. Once a traditional, ‘boxy’ retail park, Teesside Park in the Tees Valley – of which British Land owns around 585,000 sq ft – is the primary retail destination for the surrounding catchment, which includes the towns of Darlington, Hartlepool, Redcar, and Middlesbrough. Accessibility to these surrounding areas has played a key role in the scheme’s success, says Waterworth: “At Teesside Park there is excellent access from the A66 and A19 directly into a large, free car park. This makes Teesside Park ideal...

Insights News

Store openings in 2023 reached post-pandemic high – but closures still increasing

9,138 new stores opened in Great Britain in 2023, the highest figure since 2019, a new report has found. However, the figures from PwC – with research undertaken by Local Data Company – found that the country witnessed an increase in both openings and closures in 2023 compared to the previous year. The bi-annual report – which tracks over 200,000 outlets in more than 3,500 locations across the UK – recorded net closures of 14 stores a day in 2023. This was higher than in 2022 (10 a day) but lower than in 2018-2021. PwC/Local Data Company According to the report, this acceleration in store closures can primarily be attributed to one-off large-scale restructuring in parts of retail and hospitality. In total, there was 14,081 store closures in 2023, an average of 39 closures per day. The figure is higher than 2022’s total of 11,530, but lower than every year between 2017 and 2021, and in line with 2016 (14,439). Despite the overall decline, there was a rebound in the hospitality sector, with a notable surge in new openings. Five of the top seven categories of new openings were in this sector, with takeaways (+151), food-to-go (+131), cafes (+104), coffee...

News

The Gym Group targets over 10 new sites in 2024

The Gym Group has said it is planning to open between 10 and 12 new sites in 2024, with the next phase of growth expected to deliver around 50 new gyms over a three-year period. This comes as the group releases its full year results for 2023, a period during which it opened six new sites and refurbished over 100. In 2023, The Gym Group saw revenue increase year-on-year by 18% to £204m, and made an adjusted pre-tax loss of £5.5m, unchanged from 2022. The group also announced its three-fold growth plan for the next stage of development, which looks to increase returns from its existing estate, fund the acceleration of the rollout of new sites, and broaden growth by finding additional revenue streams. In 2023, The Gym Group also appointed Will Orr as CEO and former MD of Premier Inn and current CEO of Away Resorts Simon Jones as non-executive director. Alison Sagar is also set to join the Company in March 2024 as chief commercial officer. Will Orr said: “We have maintained positive momentum in revenue through the second half to deliver results that have offset cost inflation, in line with our guidance. With a strong start to...

News

Former RICS president joins property consultancy

Property consultancy Barnsdales has hired former president of the Royal Institution of Chartered Surveyors (RICS) Graham Chase to head up its London office. Chase – who is a Fellow of the RICS – has joined Barnsdales as the head of its valuations department, focusing on secured lending valuations and setting up the company’s first official office in the capital. He was recently awarded the Global 100 Commercial Property Business Leader of the Year award for the second consecutive year, his sixth national property industry award in 4 years. Chase is also a chartered arbitrator, and was one of the three panel arbitrators on the recently concluded Ministry of Defence estate dispute with its landlord, Annington. He is a Past Master of the Chartered Surveyors Livery Company as well as a visiting professor at Westminster University where he has lectured for 40 years. He was also chairman of Chase & Partners, having founded the company in 1995, until the business was transferred to Chase Sinclair Clark (CSC) – where he continues to work for CSC as a senior surveyor – in 2022. As part of the arrangement, Barndales will operate from the CSC office in Covent Garden. Chase said: “I am delighted with this...

News

Chopstix continues expansion with Lincoln opening

Pan-Asian quick-service restaurant Chopstix has continued its UK expansion alongside franchise partner RTL Enterprises with the opening of a restaurant in Lincoln. The new restaurant on Lincoln High Street follows a number of openings for the franchisee in 2023, including a site at Baker Street in central London which opened in October. RTL says it has worked closely with Chopstix franchise director, Aaron Moore-Saxton, to identify high potential locations to allow the franchisee to grow with the brand at speed. As part of the agreement, RTL oversees the full management of all sites. Aaron Moore-Saxton said: “RTL Enterprises has long been one of our longest standing franchise partners, operating some fantastic sites. Their expertise, experience and local knowledge makes Jimmy Arifaj and his team at RTL the ideal partner to grow the brand. “I have no doubt RTL will drive fantastic returns with the Lincoln site, such is the franchisee’s talent as an operator and passion for the brand.” RTL Enterprises director Jimmy Arifaj added: “It’s clear there’s real momentum behind the Chopstix brand. Every site we open is met with such excitement from locals, and Lincoln has been no different. “I’m looking forward to seeing how we develop with...

Deals

Vietnamese restaurant brand chooses Manchester Arndale for second site in the city

HOP Vietnamese Street Eats is set to open its second restaurant in Manchester after agreeing a 15-year lease with Manchester Arndale shopping centre. The quick-service Vietnamese restaurant brand will move into the 3,777 sq ft former Samsung unit on Market Street in May. Founded in 2015, HOP Vietnamese operates a number of outlets across London as well as a kiosk in The Orient food court at The Trafford Centre in Manchester. The brand’s food is inspired by the street food vendors of Vietnam with an fully customisable menu including Viet street food favourites such as pho noodle soup, banh mi baguettes, noodle salads, and curries. The menu also includes bubble tea, lemonades, soft serve ice cream, Viet rocket fuel coffee, Viet fried chicken, dumplings and more. Plant based and Halal options are also available. HOP Vietnamese joins a number of other food and beverage brands that have joined Manchester Arndale over the last 12 months, including Sides, Black Sheep Coffee, Krispy Kreme, and Lazy Sundae. It will also add to the scheme’s growing Asian cuisine offer, with Asian supermarket Oseyo set to open later this year after agreeing a 15-year lease. Steve Gray, head of European retail asset management at...

Deals

Soapbox Competition: Last year’s winner on returning as a judge for 2024

As Completely Retail Marketplace has just launched the Soapbox | Landsec competition, we spoke to last year’s winner about his experience with the competition – and his return as a judge for 2024. Chris Saville – who founded Gootopia with his wife Nishi in 2018 – won the competition last April. Soapbox sees many aspiring retailers pitch their businesses for the chance of winning rent-free retail space at a Landsec shopping destination. Chris had not originally planned to enter Soapbox, instead only attending Completely Retail Marketplace as a delegate on the hunt for suitable store locations. He found out about the competition through an email campaign, and applied “on a whim”, he tells Completely Retail News. He described the Soapbox application process as “very easy”: “It wasn’t particularly arduous – it was a ‘sell your business in 200 words’ kind of thing.” On his experience participating in the competition, Chris said that public speaking is not something he is “particularly fearful” of, however he was surprised by the scale of the event: “I was surprised by the number of people there and how important lots of them were. Lots of movers and shakers in the retail world.” Formerly Slime Planet,...

News

NEXT to open at former Eldon Square Debenhams