Posts from August 2024

Hammerson is set to make a number of changes to its leasing advisers across most of its UK and Ireland portfolio, CoStar News has reported. This comes after the real estate investment trust (REIT) appointed JLL to take over property management services across its portfolio in 2023. At Brent Cross Shopping Centre in London, which Hammerson jointly owns with Standard Life Investments, the REIT is understood to have appointed Cushman & Wakefield and BGP. Cushman & Wakefield and Lunson Mitchenall had been the retained agents. In Birmingham, where Hammerson owns the Bullring & Grand Central scheme in conjunction with Canada Pension Plan Investment Board, the group is expected to appoint BWD, JLL, and BGP as its advisers. BWD is currently the agent at Grand Central. At Bristol’s Cabot Circus the REIT is understood to have appointed JLL and Lunson Mitchenall as its advisers, with the same advisers expected to be appointed at Southampton’s Westquay Mall. Hammerson is understood to be picking advisers at Dundrum Town Centre in Dublin – which it jointly owns with Allianz Real Estate – as well as The Ironworks, The Ilac Centre, and Swords Pavilions, also all based in Dublin. Other UK assets where Hammerson is...

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Bowling concept strikes debut deal at Coventry shopping centre

The group behind the Roxy Lanes, Roxy Ball Room, and King Pins brands has chosen Coventry to open the first venue for its new bowling concept. Professionals At Play, which recently rebranded from Roxy Leisure Holdings, will debut the Star Pins concept at West Orchards Shopping Centre in December. Spanning 32,000 sq ft, the venue will host a variety of games, including ten-pin Bowling, mini golf, darts, shuffleboard, ice-free curling, American pool, shooting pod, ping pong, and arcade games. The site will also offer a range of food and drink, as well as a desserts emporium. Star Pins Coventry is the sister brand to King Pins, which recently launched two venues in Manchester, and has another site in the pipeline set to open in Bristol. James Travis, brand manager at King Pins said, “As the UK City of Culture in 2021, Coventry is rife with creativity and opportunities, so we couldn’t think of a better city to launch our new brand, Star Pins. The venue will mark our first venture in the city and we’re looking forward to welcoming the people of Coventry through our doors and providing them with accessible, premium game experiences, from our gold standard ten-pin bowling...

Deals News

Homebase to discuss growth plans with potential investors

Homebase is set to begin discussions with potential investors focused on driving the retailer’s new phase of growth. Retail Week reports that the discussions are set to take place next week. The DIY and gardening retailer recorded a loss of £84m in its latest annual results, down from a profit of £30m the previous year. Sales also declined during the same period from £788m to £701m, according to reports from The Times. The news follows the recent announcement that 10 Homebase stores are set to be sold to Sainsbury’s in a £130m deal, with the retailer converting them to supermarkets in the near future. Sainsbury’s is targeting the conversion of all of the sites by the end of the 2025 calendar year. Hilco Capital – which acquired Homebase for £1 in 2018 – is believed to be in talks with a number of potential suitors regarding a sale of the retailer.

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Derby retail park gym unit changes hands for £1.3m

A retail park unit in Derby let to a gym operator has changed hands in a deal worth £1.3m. Connect Derby Properties has acquired the unit at Southgate Retail Park from a private seller. Bond Wolfe acted for the vendor. The 11,643 sq ft unit has been let to The Gym Group since 2011 on a reversionary lease until March 2031. It currently generates a passing rent of £97,344 per annum, representing £8.36 per square foot. Southgate Retail Park spans 48,000 sq ft of retail space and is anchored by a Lidl supermarket. James Mattin, managing director at Bond Wolfe, said: “We are pleased to announce the sale of this key retail investment on Southgate Retail Park. The property went under offer very quickly after we received multiple bids, demonstrating further evidence of the demand for these types of assets from the private investor market. “We are shortly releasing a number of similar opportunities in the area and would be pleased to discuss specific requirements from investors looking for opportunities.”

Deals News

Dobbies eyes rent cuts in restructuring plan

Dobbies is working with advisers on a restructuring plan which could see the garden centre chain slash rents at some of its stores and close others entirely. The retailer – which is owned by American investor Ares Management – has drafted in FTI Consulting to work on the restructuring plan, Sky News has reported. It is unclear how many of its 77 stores the retailer plans to close under the proposed plans, however if these are not approved by Dobbies’ creditors an insolvency process would likely take place. Theis comes after Dobbies reported losses of £130m in its latest annual results, a drop from a loss of £21.3m the year before. The retailer cited poor weather and high inflation for the decline in results. Dobbies was previously owned by private equity investor Midlothian Capital Partners, before Ares Management took control of the retailer through a reorganisation of its debt. Prior to that, the retailer was under Tesco’s ownership for almost a decade.

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Liverpool ONE introduces two new accessibility tools

Liverpool ONE has announced the introduction of two brand new schemes aimed at improving accessibility at the centre. The new tools, Sociability and Waymap, have launched at the centre this week, and look to support the some 58,000 households in the Liverpool City region with at least one disabled member. Sociability is designed to help people with disabilities to find accessible spaces. As part of the initial pilot, the majority of stores, restaurants, and entertainment venues within Liverpool have been visited to assess their accessibility features and an online directory of the venues has been created. The directory allows visitors to filter results based on their specific needs, such as seating availability and accessible toilet provisions. Matt Pierri, founder and CEO at Sociability, said: “We’re thrilled to partner with Liverpool ONE to make it easier than ever for disabled people to find accessible places to eat, shop and socialise. Sociability takes away the stress and anxiety of planning an accessible day out – helping more disabled people to enjoy all that Liverpool ONE has to offer, and to spend more time with the people they love, in the places they want to visit.” Launching alongside Sociability is navigation app Waymap,...

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Roadside Real Estate completes disposal of pub assets

Roadside Real Estate has disposed of its remaining pub assets as the company continues to shift its focus towards roadside assets. The group has disposed of the leaseholds for The Bull Hotel in Fairford, The Rose and Crown in Ashbury, and The Eliot Arms in South Cerney, terminating the leases at these pubs for no cost. The existing management team, via PS91 Hospitality, has agreed new leases with the landlords of these pubs and have assumed all operational responsibility. Roadside Real Estate has also rescinded operational responsibility for the Coach & Horses in Chiselhampton. However its subsidiary, Barkby Pub Co, retains the freehold for the pub and has granted PS91 Hospitality a lease to operate it. The group said that – in the period ending 30 September 2023 – the assets subject to the disposal achieved a loss before tax of c.£0.8m and were held at a total carrying value of c.£0.2m. Charles Dickson, executive chairman of Roadside Real Estate, said: “We are pleased to have concluded the exit of our pub business and we continue to focus on the execution of our roadside real estate strategy.” Formerly Barkby Group, the group is eyeing REIT status as it aims to...

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Bill’s Restaurants appoints Savills to advise on expansion

Bill’s Restaurants has appointed Savills to advise on its nationwide expansion plans. The group – which is backed by British businessman Richard Caring – currently has over 40 locations across the UK. The operator successfully trialed a new café and bar concept earlier this year in Newbury and St Albans, and has two new locations set to open later this year in Milton Keynes and Street, Somerset. Bill’s is also currently developing its pipeline for 2025 and beyond, including both its café and bar concept as well as its existing restaurant format. Tom James, managing director at Bill’s Restaurants, said: “We have identified several key locations across the United Kingdom where we believe Bill’s would be a great fit. We are excited to be working with Savills to realise our ambitions to bring this well loved and colourful Bill’s experience to more guests in 2025 and beyond.” Bills was founded in 2001 in Lewes, East Sussex by Bill Collison as a greengrocery, before a café was added to the shop.

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Sainsbury’s acquires 10 Homebase stores for conversion

Sainsbury’s has reached an agreement to acquire 10 leasehold stores from Homebase, which it intends to convert into supermarkets. The acquired stores are in key target locations as Sainsbury’s looks to increase its coverage across England, Northern Ireland, and Scotland. Once converted, the shop floor areas of the new Sainsbury’s supermarkets will range between approximately 15,000 and 40,000 sq ft, adding a total of 235,000 sq ft to the retailer’s total trading footprint. The transaction is expected to completed in early September, with the first opening anticipated next summer. Sainsbury’s is targeting the conversion of all of the sites by the end of the 2025 calendar year. Sainsbury’s said the gross investment value of the acquisition – being the total capitalised cost of leases, acquisition premium and fit-out costs – is expected to be approximately £130m. The retailer expects the stores to achieve strong returns, with return on capital employed in the low teens, comfortably in excess of its cost of capital. Simon Roberts, chief executive officer of Sainsbury’s, said: “Sainsbury’s food business continues to go from strength to strength as we push ahead with our Next Level Sainsbury’s plan. We have the best combination of value and quality in...

Deals News

PureGym to open over 20 new sites in second half of 2024

Gym operator PureGym is set to open between 20 and 25 new sites in the UK during the second half of 2024. The group – which operated 387 UK gyms as of 30 June – opened nine new sites in the second quarter of the year, bringing its total number of UK openings in the first half of the year to 20. This comes as PureGym releases its results for the second quarter of the year, a period during which it reported “reliable, ongoing growth”. During the three months ending 30 June, the group recorded a global adjusted EBITDA of £41m, a year-on-year increase of £5m. Total revenue during the first quarter reached £151.4m, up from £137.4m during the same period in 2023. During the first half of the year as a whole, the group recorded a revenue of £299.6m, a year-on-year increase from £270.5m. PureGym also recently announced a change of role for CEO Humphrey Cobbold who will become chair of the board, as well as the appointment of Clive Chesser as CEO. Both changes will be effective from 6 November. Cobbold joined PureGym as chief executive in 2015 and has led the company’s rise from a market entrant to...

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New occupiers sought at former Fulham Road Picturehouse

The search has begun for new occupiers at the former Picturehouse Cinema on the junction of Fulham Road and Drayton Gardens, West London. Savills has been appointed to find suitable tenants for the 46,827 sq ft building, which was vacated by Picturehouse in July as part of a restructuring plan by its owner Cineworld. The property is being marketed with the opportunity to reorganise the internal accommodation to create smaller units, with the current owner open to discussing lease arrangements on all or part of the building. Arranged across five storeys, each of the building’s floors vary in size, from the smallest at 3,685 sq ft to the largest at 15,804 sq ft. The former theatre – which is located in close proximity to the King’s Road, Chelsea and Westminster Hospital, the Lycee, V&A, and Natural History Museum – benefits from an Art Deco frontage, but is not listed. The building originally opened in 1930 as the Forum Theatre, and was refurbished after Picturehouse took over management from Cineworld in 2019. However, the pandemic saw the venue close just months after reopening. It is currently owned by Martin’s Properties, which purchases the asset in 1997.

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Derbion ties up deal with national footwear brand

Pavers has agreed a deal to join the Derbion shopping centre, with the footwear brand opening at the Derby scheme in September. The retailer – which operates over 150 stores in the UK – will take 4,000 sq ft of space, offering a range of footwear and accessories including handbags. Beth McDonald, managing director of Derbion, said: “The new Pavers store is a welcome addition to our growing footwear and fashion line-up. “Pavers’ decision to join Derbion showcases our thriving retail environment, driven by our focus on enhancing existing brands and attracting new ones.” A spokesperson from Pavers added: “We’re really looking forward to joining an impressive line-up of retailers and bringing a great selection of adults’ footwear to Derbion. “The new store provides us with a great opportunity to grow our national footprint at one of the leading shopping destinations in the Midlands.” The signing comes amid a period of significant leasing activity at Derbion, with JD Sports, New Look, and Ann Summers upsizing and relocating within the scheme following a £5m investment. B&M, White Stuff, and Castore have also all taken units at Derbion over recent months.

Deals News

First B&Q Local outside of London opens in Brighton

B&Q has opened its first B&Q Local store outside of London on Brighton’s North Street, taking residency in the former Poundland unit. The 4,000 sq ft store offers over 3,500 products available in-store for immediate pick-up or next day collection. A further 30,000 items are also available through a home delivery service. B&Q Local is a smaller high street format which aims to provide customers with speed, convenience, and access to the brand’s wider offer of products and services at locations closer to home. The retailer now operates 11 B&Q Local stores in total, and plans to open more. Speaking on LinkedIn, B&Q said: “The smaller format gives us the opportunity to get closer to our customers and adapt to changing consumer demand for speed and convenience. As well as products, customers can access services such as paint mixing, kitchen and bathroom design, click & collect, in store ordering, key cutting and WEE recycling closer to home.” It was previously reported that B&Q was considering opening 50 local stores in the long-term. Savills acted on behalf of the landlord, M&G, whilst CBRE advised B&Q.

Deals News

Mountain Warehouse upsizes at Dalton Park with Animal addition

Mountain Warehouse has upsized and expanded at Dalton Park in Seaham, adding clothing brand Animal to its offering. Opening on 31 August, the new offering sees Mountain Warehouse upsize from 1,800 sq ft to 5,000 sq ft across two units. Animal, the coastal lifestyle brand, offers a range of t-shirts and hoodies as well as new products for the forthcoming autumn/winter season. The concession will look to attract a wide range of shoppers, from adventure enthusiasts to those seeking everyday wear. Nicky Lovell, head of outlets and retail business development at Global Mutual, said: “We are continuously exploring ways to evolve the offerings available at Dalton Park and are delighted to see Mountain Warehouse’s expansion. The opening of Animal at Dalton Park aligns with our plans to enhance our offering in the sports, lifestyle, and coastal categories. “Animal’s commitment to sustainability and quality resonates with current consumer trends, and we are confident that this will drive footfall and increase dwell time at the centre. By continuing to diversify our brand portfolio, we are cementing Dalton Park’s position as a leading shopping destination in the region.” A spokesperson from Mountain Warehouse added: “We are thrilled to upsize our store and after operating at...

Deals News

Asset manager launches £500m bond for holiday parks investment

Asset management specialist Seventy Ninth Group has launched a new real estate bond to facilitate the acquisition and development of leisure and holiday parks in the UK. The Seventy Ninth Luxury Living Six (LL6) bond has been launched to the professional private and institutional investment market and looks to raise £500m. Seventy Ninth Group, which has over 50 years of real estate asset management, will aim to use the bond to acquire UK holiday assets which were popular during the pandemic, for a fraction of their previous values, for redevelopment. Once this process is complete, some of the assets will be sold on to holiday and investment markets whilst others will remain within the group’s portfolio for the longer term. Jake Webster, managing director at Seventy Ninth Group, said: “The launch of this £500m bond showcases the continued progress and success of our real estate investment portfolio. “As the UK residential buy-to-let market remains uncertain, with record high interest rates, savvy investors are looking to diversify their real estate portfolio. We believe LL6 is a great opportunity for our global network of 2,500 partners, looking for strong returns, to do just that, and we look forward to welcoming more qualified investors...

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LCP brings indoor football concept to Northampton

LCP, part of M Core, has signed an indoor football concept at Kingsfield Park, an industrial and leisure estate in Northampton. Soccer Shack has agreed a five-year lease for a 20,925 sq ft unit at the estate, which has now opened. The operator offers a range of football-related services, including pitch hire, parties and events, and football-based mini-games. Soccer Shack’s arrival looks to add to the diverse mixture of tenants in the local area and reflect the estates suitability for a variety of commercial uses. Will Helm, asset manager at LCP, part of M Core, said: “We are delighted to welcome Soccer Shack to Kingsfield Park. It’s innovative indoor football arena concept aligns well with other repurposed industrial buildings on the estate.” Kingsfield Park benefits from a strategic location in close proximity to Northampton town centre and the town’s mainline railway station. The asset also enjoys access to the M1 motorway via Junctions 15, 15a, and 16.

Deals News

Prologis acquires London mixed-use park

Prologis UK – an investor, owner, and developer of logistic properties – has acquired a London-based mixed-use asset from DTZ Investors. Prologis Park Western Avenue is located in the Park Royal area of the capital and is a prominent mixed-use logistics, industrial, and retail park. Spanning 288,523 sq ft across a site of 16.14 acres, the estate is currently leased to 21 tenants. It has direct access to the A40 dual carriageway, providing access to London’s inner road network. It is also within 15 minutes’ walking distance of five underground stations. The site offers potential for future redevelopment which could expand and increase density at the site, including with the creation of data centres and logistics fulfilment centres. The acquisition brings Prologis’ assets under management in the UK to $9.4bn (£7.3bn). Paul Weston, regional head of Prologis UK, said: “This acquisition is a significant milestone for Prologis. It reinforces our strategic investment commitments to the UK industrial and logistics market here in London, supporting the growth of our national economy. “Park Royal is the most successful logistics location in the capital. Through confident and swift work with everyone involved, we’ve secured a new park which will complement our existing portfolio, ensuring that...

Deals News

Investor completes Hobbycraft acquisition

Specialist retail investor Modella Capital has completed the acquisition of Hobbycraft from Bridgepoint Capital for an undisclosed fee. Bridgepoint – which put the arts and crafts retailer up for sale in February – had doubled the size of Hobbycraft’s estate since its acquisition in 2010. Dominic Jordan, chief executive of Hobbycraft, said: “We are delighted that Modella Capital is the new owner of this great business. Their deep understanding of the retail sector, shared vision and cultural values, combined with significant reserves of growth capital, make them an ideal partner. “I would also like to thank Bridgepoint for their support and collaboration over the past 14 years. Hobbycraft has evolved into a leading name in the arts and crafts sector and I am confident that, together with Modella Capital, we have a very bright future ahead of us.” Joseph Price, managing director of Modella Capital, added: “Hobbycraft is a business with fantastic potential, boasting a highly experienced management team, truly passionate store colleagues and real authority in a sector on the high street that continues to grow and is set to do so in the future. “We look forward to accelerating the team’s growth strategy through investment in the physical footprint...

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M&S to open clothing-only stores

Marks & Spencer is planning to open a number of clothing-only stores as the retailer sees an increase in fashion sales. The retailer will kick off the expansion programme with opening of a clothing only store at Battersea Power Station later this year, The Sunday Times has reported. The new store is set to trial a format with a curated range of menswear and womenswear, including M&S’s Autograph line. The retailer said the new stores – which will be called Marks & Spencer – will open in the autumn and be trialled as a new, smaller format. M&S’s clothing sales have seen a increase over recent years as the retailer has shifted its focus to a younger customer base. This move represents a shift in strategy for the retailer, which last year said it would look to reduce its clothing and home selling space to make way for more food space. In November, M&S said it was aiming to accelerate its store rotation programme to create an estate of around 180 full-line and 400 M&S food stores by the 2028 financial year.

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Landsec plans £32m investment into its retail assets