M&S wins high court challenge after Oxford Street demolition blocked1st March 2024
Marks & Spencer has won a high court victory over a decision to block the retailer’s plans to tear down its flagship store on London’s Oxford Street. The secretary of state for Levelling Up Michael Gove rejected the proposals in June last year on the grounds that the public benefits would not outweigh the harm to local landmarks. At the time, M&S chief executive Stuart Machin branded the decision as “utterly pathetic”, with the retailer launching its legal challenge in August. The Marble Arch store has stood for nearly 100 years. Following the high court decision announced on Friday morning, M&S operations director, Sacha Berendji, said: “Today’s judgment couldn’t be clearer, the court has agreed with our arguments on five out of the six counts we brought forward and ruled that the secretary of state’s decision to block the redevelopment of our Marble Arch store was unlawful. The result has been a long, unnecessary and costly delay to the only retail-led regeneration on Oxford Street which would deliver one of London’s greenest buildings, create thousands of new jobs and rejuvenate the capital’s premier shopping district. “The secretary of state now has the power to unlock the wide-ranging benefits of this significant investment and […]
Nuveen’s 50% stake in Exeter’s Princesshay up for sale1st March 2024
Nuveen has placed its 50% stake in Exeter’s Princesshay Shopping Centre up for sale. The 400,000 sq ft asset comprises retail units, food and beverage and leisure space, and offices. Savills has been appointed to handle the sale, as is reported to be seeking around £40m for the 50% stake. The remainder of the asset is owned by The Crown Estate. Key tenants at Princesshay include Next, Zara, and Reiss, with F&B operators at the scheme including Nando’s, Wagamama, and Yo! Sushi. Included in the estate are the Princesshay and Summerland Gate car parks, providing over 500 car parking spaces. Nuveen purchased its 50% stake in 2014 from Landsec, as part of a deal which saw Landsec take control of Buchanan Galleries in Glasgow. Total gross income across the Princesshay assets is around £9.1m per annum, producing a net operating income of approximately £6.3m per annum.
Bayswater’s The Colonnades sold for £33.5m1st March 2024
FTSE 250-listed investment trust TR Property has announced the sale of The Colonnades in Bayswater, London to a private family office for £33.5m. The property extends to two acres and comprises a mixed-use block featuring a Waitrose supermarket and upper residential sections, which were sold in 2022 for £5m. TR Property has conducted significant asset management on the property, including a 16,000 sq ft extension and refurbishment to the Waitrose store in 2015, with the supermarket – which is let on a 20 year lease – doubling in size to 44,000 sq ft. Whilst TR Property primarily invests in real estate investment trusts and other listed property companies, it is able to hold up to 15 per cent of its assets in physical UK real estate. The investment trust said the sale of The Colonnades is in line with its strategy to recycle capital out of mature assets. George Gay, direct property fund manager at TR Property, said: “Through this sale we have been able to unlock in excess of £30 million to invest into higher-yielding assets such as multi-let light industrial. Having transformed the Colonnades, this is the right time to exit and turn towards future opportunities and growth.”
LXi completes £210m sale of 66 Travelodge hotels29th February 2024
LXi Real Estate Investment Trust (REIT) has completed the sale of 66 Travelodge-branded hotels to the Travelodge group for £210m. LXi said the majority of the sale proceeds will be used to pay down debt, reducing loan-to-value (LTV) from 38% to 34% and reducing Travelodge’s proportion of group rent from 18% to 11%. The REIT said the sale and debt repayment are not anticipated to have a material impact on the its earnings given the debt cost savings. When the deal was announced in January, Simon Lee, CEO of LXI REIT Advisors, said: “We are delighted to be transacting with Travelodge on this landmark sale of 66 hotels for £210 million, which is in line with the latest book value. Most of the sale proceeds will be used to pay down debt, reducing group LTV to 34%, and Travelodge’s proportion of group rent will reduce to 11%. The sale and debt repayment are not expected to have a material impact on the Company’s earnings. Travelodge operates a best-in-class hotels business and the firm commitment of its owners to the business is demonstrated by their support to enable the purchase of 66 of its assets.” Jo Boydell, chief executive of Travelodge, […]
All-day club house concept hungry for more London sites1st March 2024
An all-day community club house concept is on the hunt for new sites in London as it looks to open five sites in the capital over the next three years. Bubba Oasis currently operates two venues in Clapham and Islington, offering co-working space, all-day dining, late-night events, and private function spaces. Describing itself as an “affordable club house with an authentic lifestyle brand”, Bubba Oasis looks to tap into the Generation Z market, creating a work-friendly environment, a community-focused brand, and offering a wide array of events, all at a reasonable price. Events which take place at Bubba Oasis’ existing club venues include supper clubs, live music sessions, fashion pop-ups, art installations, corporate events, and parties. The concept’s management team has experience in the hospitality industry, having collectively launched over 60 venues across the UK. The founder and CEO, Rob Huysinga, co-founded ice cream experience Pan-n-Ice at 19, was a finalist in the 2022 Great British Entrepreneur of the Year, and was awarded the 30 Under 30 Restaurant & Marketeer Innovator of the Year award. Bubba Oasis’ co-founder and COO Moe Sahrie and partner and event director Johnny Veyret both have experience at Joe & the Juice, having worked as […]
PROPERTY OF THE WEEK
Unit 9-10, Park View Shopping
Park View Shopping Centre is the prime shopping destination within Whitley Bay, linking Park View and Whitley Road. Whitley Bay is a popular seaside commuter town, with a district population of 36,650 persons (North Tyneside Pop Stats 2013) and a wider catchment of circa 200,000 persons. The town is situated approximately 10 miles east of Newcastle City Centre and is well linked via the Tyne & Wear Metro and the Coast Road (A1058).
Hammerson’s Bullring & Grand Central ‘flight to quality’ continues with a strong start to 202414th February 2024
Hammerson has announced that footfall at Bullring & Grand Central continues to increase year on year with strong visitor numbers continuing through January, reflecting the group’s focus on its repositioning of the asset. Overall, footfall at Bullring has increased by 6% in January 2024, compared with a year earlier, reflective of the influx of new store openings (totalling 200,000 sq ft) and entertainment offers the group introduced last year. This further endorses the quality of Hammerson’s unique city centre portfolio which is fast evolving into vibrant 24/7 estates, part of the fabric and infrastructure of the city. High profile additions included Nike, which opened its first-ever ‘Rise’ concept store outside of London at Bullring, Inditex’s Bershka and Pull&Bear, who made their regional debuts, TAG Heuer’s first ever boutique in Birmingham, and M&S’s new 65,000 sq ft food-led flagship – its largest in the Midlands. Sports and streetwear brand, JD, led a number of important upsizes and expansions, after more than doubling its footprint with a new 27,500 sq ft store. This is now its best performing in the region, including Manchester and the West Midlands. Goldsmiths also upsized to a new 8,000 sq ft boutique meeting high-demand for jewellery, which continues to be a top performing category across Hammerson’s portfolio. […]
The power of retail property5th January 2024
The retail property market has had an interesting few years. The pandemic saw thousands of shops close, with some never opening their doors again. Despite a number of setbacks, physical retail is still going strong. We’ve seen a shift in consumer attitudes and the way people shop. Customers nowadays are increasingly looking for an omnichannel offering, with brands making use of both online and physical retail. So what can retail property do for your business? Enhance your brand visibility Making use of retail property can help bring your business into the limelight and increase your brand visibility. Having a strong physical presence – whether that’s on a high street, in a shopping centre, or at a retail park – will help you bring in new customers. Ways that retail property can improve brand visibility include the usage of large signage and window displays, as well as a clean and attractive storefront. Brand visibility is a key building block to building brand awareness, which all the world’s most successful companies have in spades. Having a physical retail space will help make people who frequent shopping destinations recognise your business. Increase customer engagement Retail property can also help improve your customer engagement […]
The O2 enjoys record start to 20241st March 2024
The Entertainment District and Outlet Shopping at The O2 have enjoyed their strongest ever start to a trading year, with the destination expecting to top 2023’s record-breaking year of results. Between 1 January and 25 February, The O2 welcomed over 1.5 million visitors, an increase of 46% compared to the same period last year. During the same period, sales increased by 25% compared to 2023, with average weekly sales up by 18%. Outlet Shopping at The O2 specifically recorded a year-on-year increase in sales of 18%, bolstered by the sample sales of fashion retailers Hackett and Scamp & Dude. The Entertainment District also recorded strong results, with a 30% rise in sales compared to 2023. February half-term was particularly robust, with sales at Outlet Shopping at The O2 up by 54% and average transaction value increasing by 13% compared to the same period in 2023. Meanwhile, the Entertainment District recorded a sales increase of 29%, with average transaction value up by 5% compared to last year. This coincides with the destination reaching full leasing completion, following the signing of Asian restaurant concept Chopstix, which will join operators such as Chipotle, Afrikana, iFLY Indoor Skydiving, JD Wetherspoon’s ‘The Stargazer’, and Mamma […]
Sustainability News in Retail
Completely Retail Marketplace looks at the latest Sustainability News from the world of retail. Consumers are consciously choosing to buy from brands that commit to sustainability. Nowadays, going green is about more than just using LED lights in your stores or asking customers to recycle their shopping bags. Sustainability allows brands to better connect with their […]
More Latest Retail News
The Body Shop: Full list of the 75 shops set to close29th February 2024
The Body Shop has announced the names of 75 stores it will be closing over the coming weeks, in addition to seven immediate closures it confirmed two weeks ago. Whilst it will keep 116 UK stores open, the cosmetics retailer could let go of up to 800 members of staff, taking into account head office redundancies. The retailer collapsed into administration earlier this month, just weeks after being acquired by private equity group Aurelius. FRP Advisory were appointed to explore the retailer’s options. FRP Advisory’s Tony Wright said: “In taking swift action to right-size The Body Shop UK store portfolio, we have stabilised the business. “We remain fully focused on exploring all options to take the business forward.” The stores set to close are: The Body Shop was founded in 1976 by the late Dame Anita Roddick. It was sold to French beauty company L’Oreal in 2006, before changing hands twice, first to Brazilian group Natura and then to Aurelius for £207m. Other potential buyers for the business included Bensons for Beds owner Alteri Investors, former Hotter Shoes owner Epiris, and activist investors Elliott Advisors.
Shaftesbury Capital hails “excellent start” in first year since merger29th February 2024
Shaftesbury Capital’s chief executive Ian Hawksworth has hailed an “excellent start” for the business in its first full-year results since Shaftesbury and Capital & Counties merged last spring. The real estate investment trust (REIT) recorded 526 leasing transactions in 2023, representing £37m of rent. This was 10% ahead of the REIT’s December 2022 estimated rental value, with 68 new retail and hospitality concepts joining the Shaftesbury Capital estate over the year. Of these 526 leasing transactions, 188 were within the commercial sector, representing £24.2m of rent. Shaftesbury Capital said it has a low vacancy rate, with 2.1% of ERV available to rent. In 2023, the REIT’s annualised gross income increased by 10.4% on a like-for-like basis to £192.8m, whilst its ERV growth recorded a like-for-like increase of 6.9% to £236.9m. The value of Shaftesbury Capital’s wholly-owned portfolio fell by 0.8% on a like for like basis to £4.8bn, with ERV growth offset by an equivalent yield movement of 26 basis points to 4.34%. To date, the REIT has completed £145 million of asset disposals, 8 per cent ahead of valuation, and said it has several other assets under offer. Shaftesbury Capital said that despite the uncertain geopolitical and macroeconomic backdrop,...
One of the North West’s largest IMAX screens to open in Blackpool29th February 2024
One of the largest IMAX screens in the North West is set to open at Houndshill Shopping Centre in Blackpool next month, asset manager Ellandi has announced. Opening on 22 March, Backlot Imax Cinema will feature a 10.85 metres high and 19.87 metres wide screen, complemented by a 100-seat diner serving burgers, hotdogs and wings, as well as a range of desserts. The Backlot has been designed to create an arts and entertainment hub for local residents and visitors, aiming to become the main place in town to host events such as corporate conferences, birthday parties, comedy nights, gaming nights, and community meet-ups. Building on Blackpool’s long history of picture houses, the new extension of the shopping centre will aim to increase footfall and have a positive impact on the surrounding businesses. Tim Cornford, head of asset management at Ellandi, said: “This new opening of IMAX cinema is part of the exciting regeneration plans for Blackpool. The regeneration of Blackpool town centre is a great example of public/private partnership working at its best. Our vision is to transform Blackpool’s shopping and town centre into a sustainable and thriving destination to reflect the needs and wants of residents, shoppers and visitors. […]
Hammerson celebrates record year of leasing29th February 2024
Hammerson is celebrating a year of record leasing, with the real estate investment trust (REIT) completing 306 deals in 2023. These deals represented £46m of headline rent, £29m at Hammerson’s share, split roughly evenly between new to portfolio brands, new concepts, social and entertainment offers, and renewals with existing occupiers. Hammerson said that rental levels have rebased and that it is driving growth with permanent deals signed 12% ahead of estimated rental value, and 37% ahead of previous passing rent, equating to an additional annualised passing rent of £7m on its £179m flagship rent roll. The increase in visitors seen at the REIT’s assets in 2022 continued into 2023, with footfall growing by 3% year-on-year. Whilst footfall remained lower than pre-pandemic levels, it was on average less than 10% lower than in 2019. Average dwell time also increased, up by 5% to 88 minutes. Hammerson said that total sales and sales densities have risen by mid-teens percentages since 2019, with evidence that repurposed space and new concepts outperform that which it is replacing. The REIT said that consumer spending “continues to be resilient”, with an improved outlook for 2024, adding that despite the cost-of-living crisis, savings built during the pandemic, […]