Posts from July 2024

Developer Quintain has received a £755m equity commitment to complete the final stages at its mixed-use Wembley Park development. The funding is being led by Ares Management Corporation, with Quintain’s owner Lone Star contributing £337m. Quintain has invested over £2.8bn into the Wembley Park development since its acquisition in 2002, creating a mixed-use neighbourhood with around 5,000 homes, retail and office space, as well as parks and pedestrianised public realm. James Saunders, CEO of Quintain, said: “Quintain is delighted to have Ares’ backing as a new partner, whilst maintaining our longstanding partnership with Lone Star, to continue to develop the world-class Wembley Park estate which already is home to the largest multifamily/build-to-rent community in the UK.” James Riddell, co-head of European real estate at Lone Star, added: “This is a significant next step in the evolution of Quintain’s development of Wembley Park under Lone Star’s ownership. Wembley Park is one of the largest build-to-rent schemes in the UK and a great example of ambitious place-making. In Ares, we have found a like-minded partner, and together we look forward to taking this iconic asset to its next exciting phase.” Stefano Questa, partner and European co-head of Ares Alternative Credit, who will...

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Improving market sees Shaftesbury Capital set eyes on expansion

Shaftesbury Capital has said it is looking at opportunities to expand and add to its growth prospects amid an “improving market backdrop”. The real estate investment trust – which has a London-based portfolio focused on Covent Garden, Carnaby, and Chinatown – said demand for West End real estate is strong, adding that the area has continued to attract investment from international and domestic investors. The REIT also said that it has seen high footfall, a growth in customer sales, and limited vacancy across its portfolio, aided by “excellent” levels of leasing activity, a good pipeline, and a number of customers upsizing across its estate. The group expects continued performance in rents and valuation which it said are well underpinned and are positioned for further growth. This comes as the REIT releases its half-year report for the six months ending 30 June, a period during which the value of its wholly-owned property portfolio increased by 1.4% on a like-for-like basis to £4.8bn, equivalent to an average of approximately £1,764 per sq ft. During the period, the group completed 217 leasing transactions, representing £28.1m of contracted rent. This was 7% ahead of December 2023 estimated rental value and 16% ahead of previous...

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Aldi to open four more London stores in 2024

Aldi has announced that it will be opening four more stores in London by the end of 2024, as the retailer looks to expand its presence in the capital. Stores in Leytonstone (E11) and Beckton (E6) are set to open within the next couple of months, whilst Holloway Road, North London and Muswell Hill (N10) will welcome new Aldi stores later in the year. Jonathan Neale, managing director of national real estate at Aldi UK, said that London will be a “particular focus” for the retailer, which has a long-term ambition to open a further 100 stores in the capital. The openings form part of a wider strategy from the retailer to create an estate spanning a total of 1,500 stores nationwide, as Aldi commits to investing £550 million into expanding its UK footprint this year alone. Earlier this year, Aldi unveiled its list of priority locations within the capital. 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...

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Jack & Jones signs for Silverburn

Henderson Park and Eurofund Group have secured Jack & Jones as the latest brand to join Glasgow’s Silverburn shopping centre. Part of BESTSELLER, the Danish menswear brand has taken a 3,723 sq ft space at the scheme. BESTSELLER operates across 70 countries and has a focus on sustainability, recently announcing an investment into reducing CO2 emissions. Alberto Esguevillas, CEO at Eurofund Group UK said, “Jack & Jones will be a welcome addition to our existing line-up of fashion brands and affirms Silverburn’s position as the region’s leading destination. A growing mix of retailers, alongside key F&B and leisure brands, is the cornerstone of any successful scheme and we are continuing to evolve our offer for our visitors.” Silverburn welcomed over 15 million visitors during 2023, and saw double digit sales growth. During more than two years of joint venture ownership Henderson Park and Eurofund Group have agreed over 56 deals for the centre. During the past year, the scheme has secured a number of new retailers and brands, including Mango, Seasalt, and a new flagship Zara store on the site of a former Debenhams. Eurofund Group and Henderson Park were represented by Culverwell and Time Retail Partners.

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Co-op opens four convenience stores in a week

Co-op has opened four new convenience stores in a week, including one in collaboration with franchise partner EG On The Move. Last week, the retailer opened a 2,500 sq ft store between Bamber Bridge and Walton le Dale, Lancashire, a 2,700 sq ft store in Hampton Gardens, Peterborough, and a 3,000 sq ft store in Plaistow, East London. Each of the stores includes a Costa Coffee Express and in-store bakery, as well as parcel collection services via an InPost locker. In addition, a new service station and Co-op store opened in Billingshurst, West Sussex, on Thursday (25 July) as part of the new franchise agreement with EG On The Move, EG Group’s retained petrol forecourt business. The partnership will initially trial seven new stores, with the potential to expand in the future. The 24-hour service station offers electric vehicle charging, an ATM, and a Starbucks self-serving coffee machine as well as Co-op’s usual range of produce, meals, and essentials. New-York style Pizza from Sbarro and sandwiches from Subway are also available. Martin Rogers, director of partnership development at Co-op, said: “We are delighted to be working with EG On The Move, our second forecourt partner, helping us achieve our ambitious plans...

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URW to build student housing and community space at Westfield Stratford

Unibail-Rodamco-Westfield (URW) has been granted planning consent to create student housing and a community space on the Westfield Stratford City car park roof. The development was unanimously approved at a planning committee on 23 July, with the committee welcoming a sustainable approach to development. Once complete, the development is set to provide 520 student beds, as well as a 30,000 sq ft publicly accessible roof top park space for leisure, sport and play. Students are also set to benefit from over 16,000 sq ft of dedicated amenity space throughout the building. The new scheme forms part of URW’s mixed-use strategy and has been designed in line with the company’s Better Places roadmap. Key design elements include utilising the existing structure and foundations, whilst the accommodation will be serviced by existing utilities to ensure energy efficiency. Scott Parsons, chief operating officer of Unibail-Rodamco-Westfield, said: “Delivering a high-quality, sustainable design that provides genuine community benefit was an important part of this process and something our team worked closely with local stakeholders and consultation groups on. “Despite a number of student homes having been delivered in the area in recent years, there is a pressing need for more high-quality and affordable student beds as...

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RO Group acquires roadside site in Swindon earmarked for development

The RO Group has completed the acquisition of Home Farm in Swindon, a roadside development site located on the A420. The group is set to develop a strategic mixed-use scheme on the 9.7 acre site, which offers potential for a number of uses including retail, industrial, logistics, and storage. The blueprint for the new development is RO Group’s Solstice Park development in Amesbury, which has been designed to accommodate a diverse range of businesses. RO Group also has a history of development in Swindon, having previously developed the RO24 industrial scheme at South Marston Park. Nick Cashmore, investment director of the RO Group, said: “We are delighted to have invested in Swindon, and we look forward to developing this site into a thriving mixed use scheme. We have diligently searched for sites in the South of England and are pleased to have now identified the perfect location for our next major development. “The site is excellently placed on the A420 Swindon to Oxford road making it an ideal location for a variety of potential uses. The area is already a hive of activity. Neighbouring occupiers include major retailers such as Sainsbury’s and Dunelm as well the regional distribution hubs for...

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Oxen Sports makes bricks-and-mortar debut at Junction 32

Oxen Sports is set to open its first-ever bricks-and-mortar store at Junction 32 outlet shopping destination in Castleford, West Yorkshire. The 1,500 sq ft store will offer a range of athleisure, gymwear, and sportswear, including official merchandise from local sports teams such as the Castleford Tigers, Leeds Rhinos, Huddersfield Giants, and Doncaster Rovers. Featuring boots, balls, and sports equipment, the store will look to cater to both amateur enthusiasts and professional athletes. The demand for athleisure products is increasing as consumers seek versatile clothing that transitions seamlessly between workouts and daily activities, reflecting a broader shift towards healthier lifestyles. GlobalData predicts that the UK athleisure market will grow by 16.4% in the UK between 2023 and 2027, with Oxen Sports set to benefit from this growing demand. Rachel Scott, head of leasing at asset manager Global Mutual, said: “The arrival of Oxen Sports at Junction 32 is a significant milestone. This innovative store not only enhances our retail offering but also strengthens our community ties by celebrating local sports teams and athletes. We are excited to see the positive impact it will have on our visitors.” Junction 32 has undergone a busy period of leasing, welcoming an expanded Sports Direct store...

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Greggs opens nearly 100 stores in the first half of 2024

Greggs opened 99 new stores – including 30 relocations – during the first half of 2024, as the bakery chain continues to expand. During the period, the operator closed 18 stores, resulting in a net increase in the size of its store estate of 51. Greggs, which had 2,524 shops trading at the period end, said it remains on track to achieve between 140 and 160 store openings by the end of 2024. In March, the chain said there is “clear opportunity for significantly more than 3,000 UK shops over the longer term”. This comes as the operator releases its interim results for the first half of the year, a period during which it recorded total sales of £960.6m, a year-on-year increase of 13.8%. During the period, which covered the 26 weeks ending 29 June, the group’s company-managed like-for-like sales were up by 7.4%. This has resulted in an underlying pre-tax profit excluding exceptional items of £74.1 million, representing a year-on-year increase of 16.3%. Roisin Currie, chief executive of Greggs, said: “Greggs has made good progress in the first half of the year, further broadening our range of on-the-go food and drink whilst making it more accessible to more customers. ...

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Carpetright: landlords, suppliers, and customers owed £80m following collapse

Carpetright’s landlords, suppliers, and customers have been left £80m out of pocket following the flooring retailer’s collapse. According to documents, the retailer’s creditors, including Condor and AW Weavers, were owed around £24m at the time of its collapse, The Times has reported. Carpetright also reportedly owes £30.9m to “other creditors”, including customers, and a further £15.6m to “other accruals”. The documents showed that the retailer accrued a total of £81.7m in liabilities by the end of April. Carpetright collapsed into administration earlier this month, before rival Tapi acquired the flooring retailer’s intellectual property, 54 of its stores, and two warehouses. However, this has led to the closure of 218 stores. Carpetright’s administrators PwC had appointed CBRE to sell 239 leasehold sites, including out-of-town stores, warehouses, and in-store concessions. Carpetright – which has struggled with a downturn in trading over the last few years – went through a form of insolvency proceedings in 2018 resulting in the closure of a number of stores. In April, it was reported that the retailer had drafted in advisers from Teneo as it looked to explore cost-cutting options.

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Hobbs to open at Manchester’s Trafford Centre

Womenswear brand Hobbs is set to open its 63rd standalone store in the UK at Manchester’s Trafford Centre this autumn. The 4,000 sq ft store, located on the Upper Regent Crescent, will stock the brand’s mainline range, as well as limited-edition collections. The store will feature Hobbs’ new reevaluated concept that will be rolled out to all of the brand’s future locations. This new concept looks to reflect a refined and contemporary aesthetic. Hobbs’ expansion forms part of a property strategy that aims to meet the evolving needs of customers, through an improved distribution of stores across the entirety of the UK. Caraline Money, global retail director at Hobbs, said: “Trafford Centre’s status as a premier and luxurious shopping destination aligns with Hobbs’ prestigious brand image and adds to the overall shopping experience for our customers. With high footfall and a wide catchment from across the region, we’re expecting to reach a broader audience, enhancing our presence in the North of England.” Kate Pearson, director of asset management at Pradera Lateral, Trafford Centre’s asset manager, added: “As a beloved British brand, Hobbs’ premium retail offering aligns perfectly with our existing range of luxury fashion brands. At Trafford Centre, we’re proud to be...

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All of Ted Baker’s UK stores to close

Ted Baker is set to close all of its UK stores within the next three weeks under its restructuring plans. The retailer’s UK arm, No Ordinary Designer Label (NODL), appointed administrators in March, and has since closed 15 stores. Prior to its collapse, Ted Baker operated 46 stores in the UK. US company Authentic Brands Group (ABG), which owns Ted Baker’s intellectual property, has been searching for a new partner to operate the brand’s retail and online UK business. Next and Frasers Group have previously emerged as potential candidates, however The Sun has reported that the latter has pulled out. Since Ted Baker’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. Last year, a restructuring process saw the retailer let go of around 200 members of its head office staff. It then secured a long-term lending facility from asset-based lender Secure Trust Commercial Finance. It was...

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British Land signs trio of healthcare businesses at Manchester retail park

British Land has leased a total of c.12,800 sq ft of space at Crownpoint Retail Park in Denton, Greater Manchester, to a trio of healthcare and veterinary operators. InHealth, the specialist provider of diagnostic and healthcare solutions, has taken a c.5,000 sq ft unit for a community diagnostic centre, whilst CVS Vets and MyDentist have taken c.2,500 sq ft and c.5,300 sq ft respectively. Crownpoint Retail Park comprises 36 units totalling 212,000 sq ft of space, and is let to a variety of occupiers across the retail, food and beverage, and healthcare sectors. The asset is located less than 40 minutes from central Manchester and 20 minutes from Stockport. Matthew Reed, head of retail parks at British Land, said: “With 40% of England’s population located within a 30-minute drive of British Land’s portfolio, leading healthcare brands are showing increasing interest in our retail parks. “Providers embedded within the community are providing a crucial service for patients, cutting waiting times for core services such as blood tests or X-rays. This not only taps into a significant growth market but also broadens the demographic of our retail park customers and increases the reasons for visiting our retail parks and the time spent there.”...

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Axel Arigato opens flagship store at Seven Dials

Swedish footwear brand Axel Arigato has opened a flagship store at 21-23 Earlham Street at Covent Garden’s Seven Dials neighbourhood. The 2,500 sq ft store offers a range of womenswear, menswear, and accessories, and has been designed to be transformed into an events space, acting as a community hub. The new store becomes Axel Arigato’s second location within Shaftesbury Capital’s portfolio, following the launch of its first flagship space on Soho’s Broadwick Street. The brand’s arrival further enhances the line-up of specialist and luxury performancewear brands across the neighbourhood, including the UK debut of footwear retailer HOKA, the recent upsize of outdoor apparel retailer Finisterre, and the upcoming UK flagship opening of Alo Yoga. Michelle McGrath, executive director at Shaftesbury Capital, said: “The opening of Axel Arigato’s flagship store in Covent Garden signals another exciting development in the ongoing leasing momentum in Seven Dials’ neighbourhood. The highly innovative, dynamic brand bolsters not only the destination’s unrivalled line-up of performance-wear brands but marks the launch of yet another flagship space from a best-in-class international brand. Axel Arigato’s commitment to the Shaftesbury Capital portfolio through the launch of its second anchor location emphasises the strong collaborative relationship that we strive to curate...

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Cineworld to close the curtains on 25 sites in restructuring plan

Cineworld is set to announce a restructuring plan which could see the closure of around 25 of its sites, cutting the size of the cinema chain’s UK estate by a quarter. Sky News has reported that the operator – which trades from over 100 sites in the UK – will release a restructuring plan on Friday. City sources said six Cineworld cinemas would begin a closure process immediately and close for good this summer. The operator has been in talks with some of the UK’s largest landlords – including Landsec and Legal & General – over restructuring plans. Some landlords are said to be in opposition to the proposals, however it is unclear whether a sufficient amount will be able to block the restructuring plan. Cineworld had initially held talks with prospective buyers about a potential sale of the business, but has since switched its focus to a restructuring process. The majority of the cinema chain’s creditors would need to approve proposals to close around 25 sites, with rent reductions being sought at a further 50. Should a sufficient number of landlords refuse to agree with the proposals, rival cinema chains are expected to take over some of Cineworld’s sites. The...

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John Lewis gets green light for Bromley BTR development

The John Lewis Partnership (JLP) has been given the green light to transform its Waitrose site in Bromley to create 353 homes and a modernised store. The London Borough of Bromley has agreed, with the recommendation of its planning officers, to give a resolution of grant consent for the partnership’s application. JLP said that local people will be prioritised for the new homes, which will be developed, owned, and managed by the partnership. The group added that the investment will see the local economy boosted by an estimated £70m over the first 10 years, once homes are occupied. The proposals also outline the creation of new green public spaces, a café, and amenity spaces for local community groups and schools, as well as new paths through the area to link it to the high street and surrounding area. Katherine Russell, JLP’s director of build-to-rent, said: “We’re delighted that the elected members have agreed with the recommendations of their planning officials and after receiving significant support from the residents of Bromley. This now gives us the opportunity to enhance the local area, create vital new housing for the local people of Bromley and deliver a state-of-the-art Waitrose, which sits at the heart of...

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Industry body launches campaign to keep BOXPARK Shoreditch open

Industry body The Night Time Industries Association (NTIA) has launched a campaign calling on Hackney Council to keep BOXPARK Shoreditch open. BOXPARK is set to vacate the site by the end of the summer, after reaching the expiration of its lease and being served notice by its landlord. This comes after the Mayor of London approved planning permission for the redevelopment of the 4.5 hectare site, with BOXPARK making way for new homes, retail, leisure, and office space, and a new park. Opening in 2011, BOXPARK Shoreditch began as a ‘meanwhile use’ scheme at Bishopsgate Goodsyard. The venue was created to provide a platform for independent businesses to develop their brand and served as a catalyst for the regeneration of Shoreditch. The NTIA described the scheme as a “vital” part of East London’s social and cultural fabric. The group said the site’s potential closure would not only “devastate” the businesses and individuals it supports, but also set back regeneration efforts in Shoreditch. The NTIA added that Hackney Council’s “failure” to protect the site would be a “glaring oversight”. Michael Kill, CEO of the NTIA, said: “Boxpark Shoreditch exemplifies the exact issue faced across the country with red tape and restrictive regulatory...

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RICS: Retail property lagging behind office and industrial

The Royal Institute of Chartered Surveyors (RICS) has found that high street properties underperformed compared to other commercial sectors during the second quarter of 2024. According to the latest Royal Institution of Chartered Surveyors UK Commercial Property Monitor, the commercial viability of the UK’s high streets must be improved, as retail lags behind office and industrial property. The monitor found that overall confidence in the UK’s commercial property market remained flat during the second quarter of 2024. Meanwhile, the performance gap between prime and secondary property, and between London and the rest of the country, continued to widen. Tenant demand across all commercial sectors also remained flat (+4% net balance), with industrial property and offices outperforming retail, where respondents are seeing a slight decrease in tenant demand. However, in a sign of improved positivity, 41% believe that the market is in an early recovery stage, whilst 34% think the market has reached its bottom. RICS senior public affairs officer, Sam Rees, said: “When it comes to commercial property, there remains a need to increase investment in retail and the high street. The Government have talked about several ways to improve retail conditions including introducing high street banking hubs, the revamping...

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Supermarket Income REIT completes £170m refinancing