Retail Property News

CVC planning £4bn Center Parcs takeover

6th June 2023

CVC Capital Partners, the former owner of Formula 1 and the private equity backer of the Six Nations rugby championship is reportedly pursuing a £4bn takeover of Center Parcs. The holiday resort chain was put up for sale by Canadian firm Brookwood in May, with a valuation of between £4bn and £5bn. An investment vehicle managed by CVC is expected to deliver a proposal to purchase Center Parcs’ six UK and Ireland sites ahead of a deadline later this month, Sky News has reported. A number of infrastructure funds, including French firm Antin, are also reportedly in the mix for the takeover of the leisure company. Center Parcs was previously a publicly-owned company, before being taken over by private equity firm Blackstone in 2006 and later sold to Brookfield in 2015, in a deal worth a reported £2.4bn. Blackstone is also rumoured to be considering taking over the company it once owned. A deadline of June 20 is believed to have been set by advisers, with Bank of America, Barclays, and Eastdil Secured having been appointed to manage the sale.

Retail sales growth slows despite May bank holidays

6th June 2023

Multiple bank holidays in May failed to boost retail sales growth, the latest report from the BRC-KPMG Retail Sales Monitor has revealed. UK retail sales increased by 3.9% in May 2023, however this was below the three-month average of 4.7%. Sales growth continued to be higher than in 2022, which saw a decline of 1.1% during May. The increase of 3.9% was also higher than the 12 month average growth of 3.1%. On a like-for-like basis, retail sales grew by 3.1% in May, against a fall of 1.5% in May 2022. This was below the three-month average of 4.6% and above the 12-month average growth of 3.1%. Food sales were boosted by the Coronation weekend, increasing by 9.6%, above the 12-month average growth of 6.9%. non-food sales rose by 0.7%, up on the 12-month average growth of 0.5%. Helen Dickinson OBE, chief executive of the British Retail Consortium, said: “The trio of bank holidays failed to get shoppers spending as sales growth slowed to its lowest level in six months. While food sales got a boost from the Coronation weekend, this was not sustained for the rest of the month. Meanwhile, growth in discretionary spend continued to tumble as the...

Black Sheep Coffee to debut in Woking

6th June 2023

Black Sheep Coffee is set to open its first location in Woking at Victoria Place, as the chain looks to continue its UK expansion. The brand will open in a 1,722 sq ft unit adjacent to Export House, an 86,500 sq ft office space. The coffee operator will join other food and beverage operators at Victoria Place such as GAIL’s, Itsu and the recently opened Burger King. Black Sheep in Woking will offer the brand’s range of coffee, smoothies, and shakes, as well as food such as cakes and pastries. Councillor Will Forster, deputy leader of Woking Borough Council, said: “Black Sheep Coffee is fast becoming an industry-leader, particularly with its recent expansion, so we are hugely proud that they will be coming to Victoria Place in their town debut.” JLL and Nash Bond acted for Victoria Place on the deal.

Papa John’s acquires 91 sites in shift away from franchises

5th June 2023

Papa John’s has acquired 91 UK sites from a franchisee operator and formed a portfolio of company-owned sites. The pizza chain’s newly-formed portfolio will consist mainly of sites in London and reflects a move away from its traditional business model of letting franchisees run all of its international sites. Papa John’s said the move enables the chain to introduce enhancements to its operating model to improve sales and profitability. Amanda Clark, chief international and development officer for Papa John’s, said: “Owning and operating restaurants will allow Papa John’s to follow a similar model that we’ve created in the US, which enables us to leverage our resources, best practices and scale with franchisees in the UK and worldwide to further their success.” The financial details of the acquisition were not disclosed.

New plans unveiled for Newcastle hotel and bar

5th June 2023

New plans for a hotel, bar, and brasserie in Newcastle City Centre have been submitted. A planning application, lead by Kans and Kandy, looks to renovate and change the use of the building, which is currently used for retail space and offices. If accepted, the proposals would see the ground floor and basement transformed into a bar with the upper floors converted into a hotel. The planning application said: “The aim of the proposals is to ensure the future retention of the property and creating more usable spaces. In our opinion the proposals reflect the historic character of the building and the surrounding area. “This is a sensitive refurbishment and appropriate and sustainable reuse of this vacant building. Internally the building has undergone a lot of change in the past and is now essentially a shell with only the main architectural elements of outer walls. We have also demonstrated with photographic images and plans what our proposal will entail: a quality boutique hotel, brasserie, studios and roof top terrace.” The site at 19-21 Collingwood Street was originally planned to be turned into the Metropolitan House Hotel by the High Street Group, however the company collapsed leaving debts of over £200m.

Opening date revealed for Co-op Live arena

5th June 2023

Manchester’s Co-op Arena has been given a new opening date. Originally expected to have been completed by December, the £365m indoor arena is now expected to open in April 2024. The construction of the 23,500-capacity arena is being led by a joint venture between City Football Group and Oak View Group, and is being built by BAM Construct UK. The arena will have the most floor space of any indoor venue, as well as a low ceiling and tiered seating. The venue will also be home to 32 bars, restaurants, and lounges. Approval for the venue to be constructed was given in 2020 and Co-op has a 15-year naming rights agreement. The arena is expected to host test events in April, with the first act for a paying audience due to be announced over the coming months. A spokesperson for Co-op Live said: “Co-op Live will be opening our doors to fans in April 2024. “It’s huge kudos to BAM, and the dozens of local subcontractors working on the project, that we are well within our original timeframe and on-budget given the unprecedented challenges of the pandemic, supply chain shortages, and an energy crisis.”

Asda used asset sales to fund EG acquisition

5th June 2023

Asda’s £2.28bn takeover of Eg Group’s UK and Ireland business is being funded by the sale of a number of its assets. It was originally believed that the supermarket retailer’s owners, the billionaire Issa brothers, would be providing £450m of funding. However the cash is now expected to come from asset sales, according to The Times. The £450m in equity is believed to come from a £1.7bn sales of 27 Asda warehouses to Blackstone in sale-and-leaseback deal in 2021. Mohsin and Zuber Issa acquired the supermarket giant in 2020. The merger sees Asda acquire an estate of around 350 petrol stations and over 1,000 food-to-go locations. Asda said the acquisition will create combined revenues of nearly £30bn, serving around 21 million customers weekly. Some critics have argued that the deal is being used to shift debt from EG Group as interest rates continue to rise.

Frasers Group may axe up to 200 jobs

5th June 2023

Frasers Group could cut up to 200 jobs at its London and Shirebrook offices as it looks to make the business more efficient and streamlined. The group, which operates brands such as House of Fraser and Sports Direct, has entered a consultation period with the affected staff, Drapers has reported. The move sees a fifth of Frasers Group’s head office staff at risk of losing their jobs. A spokesperson for the group said: “Frasers Group has gone through significant change in the last year, having made a number of strategic acquisitions, and accelerated progress against the elevation strategy. “We are reviewing our team structures to identify efficiencies and streamline processes and we have entered a consultation period with colleagues affected by these changes. The changes will ensure we have the right structure and talent to support continuing profitable growth for Frasers Group.” A busy 2022 for the group saw it take control of Missguided, I saw It First, Amara, and Gieves & Hawkes, amongst other acquisitions.

ASOS targeted in £1bn takeover

5th June 2023

ASOS received a £1bn takeover bid in late December from Turkish fast-fashion retailer Trendyol. The deal, which was reported in The Times, would have seen the online fashion retailer valued at between £10 and £12 a share, a significant increase on its current value of £3.50 per share. Trendyol, which raised $330m (£265m) from Chinese Ecommerce brand Alibaba in 2021, is reportedly working with Morgan Stanley on the bid, however no talks are currently underway. It is believed that ASOS’s largest shareholder, Anders Holch Povlsen, was approached however his investment vehicle declined to comment on “rumours and speculation”. ASOS was recently kicked out of the FTSE 250 after is share values fell by 93% over the last two years. In May, the retailer raised £75m of funding as it looks to return to sustained profitability. ASOS recorded an adjusted loss before tax of £87.4m in the six months to February 28 2023.

Pandora upsizes in Glasgow

5th June 2023

Pandora has moved into a larger unit at Braehead shopping centre in Glasgow. The jewellery retailer has opened at a 1,635 sq ft unit on the upper level of the scheme which combines Pandora’s previous store and a neighbouring site. The store stocks Pandora’s lab-created diamonds collection and offers a personalisation service for customers to have their jewellery engraved. The news follows a number of other expansions and openings at the shopping centre for retailers including Superdrug, Sports Direct, and GAP. Steve Gray, head of European retail asset management at Global Mutual, said: “The brand’s decision to open a new store reflects the continued appeal of physical retail and experience-first shopping. “Pandora has always been very popular with our shoppers – and we know the new design and store features will be a real draw for customers.”

A render of how the new development could look

First glimpse of Derby mixed-use development revealed

2nd June 2023

Computer-generated images of a mixed-use development in Derby have been released, which show how a derelict Victorian site could be transformed to create new housing alongside retail and leisure space. The 11.5-acre Friar Gates Goods Yard could become home to 274 houses and apartments, while the restoration of the Grade II-listed Bonded Warehouse and Engine House may pave the way for a health and fitness space, a restaurant/café, offices, and other amenities. The plans also show the potential for the creation of areas of public space with parks and play areas. Wavensmere Homes is behind the project, which has been designed by Glancy Nicholls Architects. Emphasis has been placed on incorporating green energy solutions to achieve the highest EPC rating of A. A public consultation is currently underway, with Wavensmere Homes and site owners Clowes Developments expected to submit a planning application to Derby City Council this summer. James Dickens, Managing Director of Wavensmere Homes, said: “Our plans are commercially viable, while maximising the amount of new public open space, and investing millions into saving the two badly fire-damaged 150-year-old listed buildings.” “We hope that the people of Derby will engage with the consultation process and welcome the collaborative efforts […]

Dr. Martens reaches £1bn revenue but profits fall

2nd June 2023

Dr. Martens has seen its revenue reach a record £1bn in the 2023 financial year, however the footwear retailer said it made “operational mistakes”, leading to a dip in profits. In the 12 months to 31 March 2023, Dr. Martens’ revenue increased by 10% from the previous year, however its saw profits before tax fall by 29% to £128.9m. Dr. Martens said its decision to move to a distribution centre in Los Angeles and the ways in which it conducted its marketing campaigns and Ecommerce trading contributed to the fall in profits. The retailer said trading in the current period has been in line with its expectations, with “very good” direct-to-consumer growth. Dr. Martens added that it will be increasing prices to offset supply chain cost inflation. Kenny Wilson, Dr Martens chief executive officer, said: “We are focused on the successful execution of our proven […] strategy, which we will underpin with continued investment in the business and our people to support our increasing scale and capitalise on our iconic brand’s strength. The board retains its conviction in the strategy, long-term growth and cash generation of the business.”