Posts from May 2024

Landsec has completed £617m worth of non-core asset disposals since September, including the sale of some retail centres and its entire hotel portfolio. The disposals included, amongst others, the sale of two retail outlets, one retail park, two leisure assets and a local shopping centre in London for a total of £217m. This comes as the real estate investment trust completes the sale of all of its hotel assets to funds managed by Ares Management, alongside its operating partner EQ Group, for a cash consideration of £400m. Landsec said the disposal is in line with its strategy to release capital from sectors in which it does not have scale and to focus its resources on areas where it has a competitive advantage. The hotel portfolio – which comprises 21 assets and is fully let to AccorInvest – generated a net income of £28.4m over the company’s last reported financial year. The income is 100% turnover-linked with a lease contract expiring in 2091 and 12-yearly tenant-only break options, which Landsec said limits its ability to influence performance or add further value to the assets. Of the £400m consideration, £350m has been received on completion, with the remaining £50m payable within 24...

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Chopstix continues roadside franchise partnership with South Yorkshire opening

Chopstix has continued to expand via its franchise partnership with motorway service operator (MSA) Welcome Break to open a new restaurant in South Yorkshire. The pan-Asian restaurant brand has opened at Welcome Break Woodall Southbound Services on the M1, across from an existing Chopstix unit at the Northbound services, meaning the operator now serves both sides of the M1. The restaurant, near Sheffield, is Chopstix’s 17th site in partnership with the franchisee and the fourth to open over the past six months, with a further two sites in the pipeline. Under the partnership’s agreement, the franchisee oversees the management of of all sites, with employees undergoing a Chopstix induction. Aaron Moore-Saxton, Chopstix franchise director, said: “We are delighted to launch another site with Welcome Break and operate on both sides of the M1 at Woodall. Chopstix continues to thrive in travel hubs and particularly in MSAs so I have no doubt the franchisee will have considerable success with this new opening. We’re excited to explore future opportunities with Welcome Break.”

Deals

Sustainable designer store to make London debut at The O2

Sustainable designer store All Good Things has made its London and outlet debut at Outlet Shopping at The O2. The brand has taken a 4,000 sq ft on the upper level of Outlet Shopping at The O2, adjacent to brands such as French Connection and Calvin Klein, which has recently upsized its store. The new outlet store offers a range of clothing and accessories from designer brand such as Rag & Bone, Michael Kors, and Ralph Lauren. Further amenities such as a pre-loved collection, designated clothing recycling points, and on-site stylists are also available. The store marks a debut in London for All Good Things, which operates a bricks-and-mortar store at Bristol’s Cribbs Causeway. Janine Constantin-Russell, managing director of the Entertainment District and Outlet Shopping at The O2, said: “We’re thrilled that All Good Things has chosen Outlet Shopping at The O2 as the place to mark its London and outlet debut – a true testament to the strength of The O2 as a destination of choice, both for outlets and within London’s broader retail landscape. Our visitors are at the heart of everything we do, and we take great pride in our ability to listen and respond to what...

Deals News

Wingstop opens at Merry Hill’s leisure quarter

Sovereign Centros from CBRE has announced that Wingstop has opened at Merry Hill, becoming the latest addition to the Dudley centre’s new leisure quarter. Taking a 2,650 sq ft unit on the scheme’s upper mall, Wingstop at Merry Hill becomes the restaurant operator’s 45th location in the UK. The 70-cover restaurant will offer the chain’s signature wings alongside tenders, burgers, sides, milkshakes, soft drinks, and beers. Wingstop will join anchor tenant Hollywood Bowl at Merry Hill’s leisure quarter, as well as Wagamama, ASK Italian, and smash burger concept Boo which is set to open later this year. Alistair Winning, asset manager at Sovereign Centros from CBRE, said: “Merry Hill’s new hub for eating and entertainment has come together brilliantly, and the launch of Wingstop UK marks another significant milestone in delivering this. It was part of a long-term strategy to evolve the destination, introducing more F&B and leisure, creating more of an all-day environment for our large catchment of young families. Wingstop UK will no doubt thrive amongst the complementary selection of leading F&B operators in the leisure quarter, as well as the wider destination.”

Deals News

Asda added £1.5bn of liabilities to fund EG Group deal

The owners of Asda added an additional £1.5bn of liabilities to fund its deal to take over EG Group’s petrol stations in the UK and Ireland. The new liabilities were not counted in the supermarket retailer’s £4.48bn headline debt figures. The Financial Times has reported that new documents revealed that the deal was achieved through the creation of other forms of liabilities which do not count towards its debt load. This comprised of £646m from sale-and-leaseback deals, £400m from borrowing against ground rents, as well as £401m from a shareholder loan. These deals – which were completed last year – are in addition to a £684m loan provided by investment firm Apollo, which counted towards the retailer’s debt figures. Last week, Asda reported that it had completed the refinancing of over £3.2bn worth of debt, pushing the majority of its maturities back to the 2030s. Asda told The Financial Times that the structure of the deal was “clearly communicated to all financial stakeholders at the time” and that its financial reporting was “very consistent”. Earlier this year, the supermarket said that its EG Group acquisition helped drive an adjusted EBITDA after rent of over £1bn in 2023.

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David Lloyd to splash £500m on new openings

David Lloyd is set to spend £500m on an expansion plan which will see it open 15 new clubs over the next three to four years and 50 new spa resorts over the next six years. The health and leisure business’s chair, Glenn Earlam, told The Sunday Times that the company had performed well post-Covid, despite the cost-of-living crisis. “People are willing to prioritise health, fitness and wellness in a post-covid world relatively more than they were beforehand”, he told the paper. Earlam added: “We have a lot of people that work from clubs. We have a really nice environment, separate work spaces where you can get your laptop out. Many people go into the office two or three days a week and during the other two or three days it’s just a bit too much being at home all the time. So they break it up and go and work in a David Lloyd club for half a day.” The £500m investment comes with the support of private equity owner TDR Capital, which acquired David Lloyd from co-owners London & Regional and Caird Capital in 2013 for £750m. The investment will also pay for the construction of 60 new...

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Accessories brand Radley opens at Banbridge’s The Boulevard

Luxury accessories brand Radley has opened a 1,800 sq ft store at The Boulevard in Banbridge, Northern Ireland. Owned by Lotus Properties, The Boulevard has welcomed 21 new permanent and pop-up stores since the Pandemic in 2020. The luxury outlet centre has seen the likes of Kate Spade NY, Guess, Dune London, M&S, Levis, Joules, and Kurt Geiger open over the last few years. Alastair Coulson, managing director of Lotus Property, said: “The Boulevard is fast becoming a destination for luxury brands, and we are delighted to welcome Radley to Banbridge. With a strong retail mix of womenswear, menswear, home and outdoor, we are benefiting greatly from a healthy consumer appetite for premium brands at discounted prices. We look forward to seeing the queues when Radley open their doors on Saturday.” Lotus Property is advised by Johnstone Property Consultants and KLM Real Estate.

Deals

Suit Direct signs for tailor-made Westfield Stratford flagship

Suit Direct has signed a five-year lease for a new flagship store at Westfield Shopping Centre in Stratford, London. The 1,731 sq ft store is set to be the new blueprint for the menswear retailer’s shops going forward, with zoned areas for different occasions. The deal marks a landmark in Suit Direct’s expansion strategy, as it looks to open up to 10 stores this year. Michael Lockhart, director in national retail at Savills – which advised on the lease – said: “We are delighted to have advised our client on the acquisition of their new flagship store in London. Westfield Stratford is one of the leading shopping centres in Europe, and acquiring a new store in this location is a huge advancement towards the company’s ambitious and exciting

Deals News

Asda completes £3.2bn debt refinancing

Asda has successfully completed the refinancing of over £3.2bn worth of debt, pushing the majority of its maturities into the 2030s. The supermarket retailer said the successful refinancing – which was completed on Thursday – reflects strong demand from investors. The refinancing included the biggest Sterling high-yield bond this year and the second-largest sterling bond in the European leveraged finance market – only behind the retailer’s original £2.25bn Sterling bond tranche in 2021. Asda said strong investor demand enabled it to raise £1.75bn of senior secured notes and upsize by more than £200m on a £900m Equivalent EUR Term Loan B (TLB), bringing the final size to the equivalent of £1.1bn. The maturity dates of the new senior secured notes and TLB are in 2030 and 2031, respectively. As part of the £3.2bn refinancing, Asda used approximately £300m of balance sheet cash to reduce gross debt. Asda also completed a successful extension to the maturity of its revolving credit facility from August 2025 to October 2028, and was able to upsize this facility from £667m to £748m in connection with the wider refinancing. Michael Gleeson, Asda’s chief financial officer, said: “We saw strong demand from investors after taking a thoughtful and...

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Roadside Real Estate has “immediate” £100m pipeline of targets

Roadside Real Estate has an “extensive immediate £100m” pipeline of targets, as the group looks to scale its roadside property business. Bolstered by capital provided by its joint venture with Meadow Partners, the group has also extended its medium-term target pipeline by an additional £150m to £250m. This comes as the group –formerly Barkby – publishes its final results for the 15-month period ending 30 September 2023, following a year in which it refocused its strategy and progressed its disposal programme. The group’s highlights include the construction and retention of roadside assets at Wellingborough and Maldon. The Wellingborough asset was valued at £3.9m at period end and has contracted rent of £237,000 per annum from tenants including Greggs, Formula One Autocentres, City Plumbing Supplies, and Brewers Decorating Centres. Meanwhile, the Maldon asset was valued at £4.8m at period end and has a contracted rent of £280,000 per annum from tenants Costa Coffee, Formula One Autocentres, Toolstation, and CEF. Following the period end, Roadside Real Estate has also acquired an additional three sites via its joint venture with Meadow in Stoke-on-Trent, Gosport, and Coventry. The group contributed 3% of the acquisition costs in line with the joint venture agreement, and will...

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Wiltshire leisure park on sale for £13.6m

A leisure park in Trowbridge, Wiltshire, has been placed on the market with a price tag of £13,550,000. St. Stephen’s Place Leisure Park comprises 83,926 sq ft of leisure space and is anchored by an 83-bed Premier Inn hotel and a seven-screen ODEON cinema. Other tenants at the 3.16-acre scheme include Nando’s, Wagamama, Prezzo, Loungers, and Frankie & Benny’s. The scheme – which provides a total topped-up rent of £1,428,153 – has a weighted average unexpired lease term of 12.61 years to expiry, and 10.12 years to break. The town of Trowbridge is located approximately 9 miles south east of Bath, 21 miles south east of Bristol, and 51 miles north west of Southampton. The town has a population of 428,000 individuals within a 10-minute drive, and a focused catchment of 59,000 residents. Bruce Gillingham Pollard, which has been appointed to market the property, said the £13.6m price tag reflects a net initial yield of 9.88%.

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Mango targets over 20 new UK stores this year

Mango has revealed plans to open over 20 new stores in the UK in 2024, with growth mainly focused on Scotland and London. The Spanish fashion retailer is also set to make its debut in selected cities across Northern Ireland, central, and southern England. Mango will open four stores in London, and expand its presence in Scotland with new openings in Glasgow and Edinburgh. Daniel López, Mango’s director of expansion and franchising, said: “The UK is one of the priority markets for Mango’s international growth. “The increased presence in London and our arrival this year in some cities where we have not been present until now will consolidate the Mango brand and help us to strengthen it internationally.” Last year, the retailer opened over 10 stores in cities such as London, Manchester, Leeds, and Bristol.

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Loaf opens new ‘Shack’ in Chiswick amid expansion

Loaf has opened a new ‘Shack’ concept store in Chiswick, West London, as the furniture retailer looks to expand. The smaller format store spans 3,770 sq ft and sits at the junction of Turnham Green and Chiswick High Road. The retailer has agreed a 10-year lease for the store, with the rent achieved ahead the quoting figure of £150,000 a year. GCW advised the landlord, whilst Curson Sowerby advised Loaf. Both firms have been retained to advise on the retailer’s ongoing expansion. Last year, it was reported that Loaf was looking to open Loaf ‘Shacks’ in a number of UK cities. Existing locations include Battersea, Notting Hill, Spitalfields, Guildford, Solihull, Wilmslow, Bristol, St Albans, and Edinburgh.

Deals

Wimbledon retail park handed £34m price tag

Plough Lane Retail Park in Wimbledon has been placed on the market, with Morgan Williams instructed to seek offers in the region of £34,150,000. The freehold asset comprises six units across three buildings totalling 82,589 sq ft on a site extending to approximately 5.5 acres. The scheme’s long-term income is secured to anchor retailers including Lidl, Wickes, Pets at Home, and Hobbycraft, with a weighted average unexpired lease term of 10.5 years. The current contracted rent is £2,013,881 per annum, equating to £24.38 per sq ft, and offers guaranteed uplifts and medium-term reversions. The retail park, located six miles south west of Central London, is prominently situated fronting Plough Lane, which connects the A217 and A218. It is surrounded by residential and other commercial uses with an affluent catchment population. Morgan Williams said that almost all of the surrounding retail warehouse supply has been redeveloped over the last five years for residential purposes, leaving little local competition. The asset effectively has a Class E Food and Non-Food consent, however its freehold status means there is scope for residential development. Morgan Williams said the asking price of £34,150,000 reflects a net initial yield of 5.5%, rising to an estimated minimum of...

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GO Outdoors takes 20,000 sq ft former Metrocentre Wilko

GO Outdoors has opened the doors to its latest store at Gateshead’s Metrocentre, taking 20,242 sq ft within the former Wilko store in the scheme’s Blue Mall. The store stocks a range of footwear and camping equipment, as well as outerwear from brands such as Rab, OEX, and Berghaus. Operating as a GO Outdoors Express, the store offers additional services such as boot and rucksack fitting, and features in-store collection and drop-off points. Ben Cox, director at scheme asset manager Sovereign Centros from CBRE, said: “GO Outdoors is a welcome addition to Metrocentre and highlights our quick and hands-on approach to finding an alternative tenant for the former Wilko space. Not only does it provide a dedicated space for our customers that love the great outdoors, but also complements the wider retail offer that we have evolved over the last few years. It consolidates our position in the market as the go-to destination for retail in the North East, where brands like GO Outdoors thrive.” This announcement follows the news that immersive escape room and bar concept The Escapologist is make its North East debut at Metrocentre in the coming months. Occupying 4,367 sq ft on the scheme’s Yellow Mall, the...

Deals News

Oliver Bonas relocates to Angel Central