Retail Property News

Developer acquires Bristol mixed-use building for £2.1m

4th September 2023

Rengen Developments has completed the acquisition of a mixed-use building in Bristol city centre for £2.1m. Real estate consultancy and agency Lambert Smith Hampton (LSH) acted on behalf of a private landlord to dispose of the 8,500 sq ft Hanover House in Bristol’s Old City. The building is currently fully let to Dirty Martini, Stretto Architects, Wards Solicitors, Belltown Power, and Digital Visitor. Rengen Developments operates in various sectors working on a range of different types of buildings, as well as national monuments. The developer plans to convert the upper buildings of the building whilst retaining the ground floor occupiers. Peter Musgrove, senior director and head of South West and Wales for LSH, said: “The building is well located in the heart of the Old City, which is both an historic and vibrant part of Bristol. “Having worked on this building for a number of years, it is exciting to see what this next chapter will hold and how the building will be transformed into a new purpose.”

Manchester’s Hatch to close to make way for new ownership

1st September 2023

The Hatch retail and leisure space in Manchester is set to close as part of proposals to bring a new developer to the site. Developer Bruntwood has announced that the venue on the Oxford Road Corridor will close at the end of September, making way for leisure group STACK to take over the site. Since opening in 2017, Hatch has provided a space for Manchester-based independent businesses to innovate and grow. A joint planning application is currently in progress which will see STACK create a permanent offering with a larger footprint at the site. STACK plans to bring together a mix of street food operators and bars set around a central plaza, with a stage and giant screen providing a full programme of live entertainment. The chain creates retail and leisure hubs out of shipping containers and empty properties, currently operating sites in Newcastle and Seaburn in Sunderland. STACK is also developing hubs in Durham, Whitley Bay, Bishop Auckland, Middlesbrough, Lincoln, Northampton, and Carlisle, along with a new home in Tyneside. Peter Bearpark, asset management director at Bruntwood, said: “We are incredibly proud of what we accomplished at Hatch. Originally conceived as an idea for how to utilise unused space...

Next ups Reiss stake with £128m purchase

1st September 2023

Next has acquired private equity firm Warburg Pincus’ 34% stake in premium fashion retailer Reiss for £128m. As part of the arrangement, Next’s holdings in the retailer will increase from 51% to 72%, whilst the Reiss family and its management team will maintain interests of 22% and 6% respectively. Next first made an initial investment into the ‘quiet luxury’ brand in 2021, taking a 25% stake. The news may come as a surprise, as it was reported in June that Next was considering a sale of its stake in Reiss in a deal worth £500m. Under the terms of the deal, Reiss will continue to retain its own directors and its management, including chief executive Christos Angelides, will remain autonomous. However, its online operations will remain contracted to Next’s Total Platform. Simon Wolfson, Next chief executive, said: “Reiss has performed exceptionally well since we first invested in March 2021. This success has been driven by the strength of its brand, first class management and the benefits of Total Platform; we look forward to continuing to develop the business with Christos and the Reiss team. Warburg Pincus has been an excellent partner throughout the term of our investment and we have […]

Listed mixed-use property in Manchester changes hands

1st September 2023

An Edwardian-era mixed-use building in Manchester has changed hands in a deal worth between £20 and £25m. Real estate investment firm AM Alpha has acquired the property at 196 Deansgate from Commercial Estate Group (CEG) on behalf of a Hamburg-based pension fund. Designed by Charles Heathcote in 1904, the Grade II-listed baroque property boasts 60,000 sq ft of office and retail space spread over a basement, ground, and five upper floors. The building has seen extensive refurbishment works over the last few years, the most recent of which were completed in 2021. The building offers open-plan mostly Category B offices that can be flexibly subdivided. Martin Lemke, managing director of AM Alpha, said: “As an independent family office, AM alpha can invest anti-cyclically. We are specialised in finding imbalances in the market and turning them into opportunities to achieve above-average returns for our investors, especially in a challenging market environment. “This transaction shows again that AM alpha is an expert in executing complex investments. We will continue to grow our portfolio in the UK’s dynamic growth regions”. AM alpha was advised by Cushman & Wakefield and CMS on the transaction, whilst Edwards & Co and Savills acted for CEG.

Superdry posts £21.7m loss amid “difficult year”

1st September 2023

Superdry has posted a pre-tax loss of £21.7m for the 2023 financial year, with chief executive officer Julian Dunkerton describing a “difficult year” for the retailer. This was compared to a profit before tax of £21.6m recored the previous year. However, during the 52 weeks to 29 April 2023, the clothing retailer recorded a year-on-year increase in revenue of 2.1% to £622.5m. Superdry said a “robust” return to growth in its retail division of 14.6% was offset by lower wholesale performance, which fell by 19.1%. On a statutory basis, the retailer recorded a loss after tax of £148.1m, compared to a profit after tax of £22.4m in the 2022 financial year. Julian Dunkerton said: “This has been a difficult year for the business and the market conditions have been extremely challenging, especially in wholesale. We’ve looked closely at how we operate and have taken decisive actions to improve our position, rebuild liquidity, and recapitalise our balance sheet, through careful preservation of cash and a re-engineered cost base.” “The start to the new year has been tough, not helped by unseasonal weather and highly promotional markets, and I’m not expecting the consumer environment to become any easier soon. However, the actions we […]

HMV owner on brink of rescue deal for most Wilko stores

1st September 2023

The owner of HMV is edging closer to a deal which could rescue the majority of Wilko’s stores. Canadian businessman Doug Putman is in negotiations with the retailer’s administrators PwC regarding an acquisition of around 300 of Wilko’s 400 stores, BBC News has reported. If Putman’s deal goes ahead, it could mean that thousands of jobs could be saved, however the retailer’s two distribution sites and its head office are still set to close. Wilko fell into administration in August after a difficult post-Pandemic period saw lower footfalls and a decline in consumer spending due to the cost-of-living crisis. BBC News said that there is no guarantee the revised bid will succeed, however a source familiar with the situation said that the offer has enough credibility for Wilko’s creditors to be consulted. Doug Putman purchased HMV out of administration in 2019 saving around 100 stores. He has been credited with turning around the fortunes of the retailer, which earlier this year posted a profit for the first time in four years. A number of other retailers are also looking to snap up the remainder of Wilko’s estate, including Poundland owner Pepco, B&M, and The Original Factory Shop. This comes after PwC confirmed the first round...

Frasers Group increases Boohoo stake to over 10%

1st September 2023

Mike Ashley’s Frasers Group has upped its stake in online clothing retailer Boohoo twice in just two days. The Sports Direct and Flannels owner’s investment in the retailer has now increased to 10.4%. This comes a day after the retail group increased its stake in Boohoo to 9.1%, up from 7.8%. In June, the group took an initial 5% stake in Boohoo, stating that driving growth through strategic investments is a “core part of its DNA”. It has since continued to increase its investment. Frasers Group has previously described Boohoo as an “attractive proposition”. At the time of the original investment, the group said it sees potential synergies between Boohoo and its other brands including I Saw It First and Missguided. The investment is characteristic of a group which over recent times has made large numbers of acquisitions, including with a £75m investment in electrical retailer AO World and an increase in its stake in Boohoo rival ASOS. It has also been involved in a number of retail asset acquisitions over recent months.

Footfall sees small increase in August

1st September 2023

Footfall in August saw a small increase against July of 0.2%, according to the latest figures from MRI Springboard. The data found that footfall in high streets and shopping centres increased by 0.7% in August, however retail parks saw a decline in visitors of 1.5%. Compared to 2022, footfall in August was higher by 1.9%, compared to year-on-year increases of 4.2% and 2.1% in June and July respectively. Diane Wehrle, marketing and insights director, MRI Springboard, said: “Footfall performance in August points to a continuing weakening in consumer demand, which is unsurprising given the recent rises in interest rates and ongoing high levels of inflation. “Footfall across UK retail destinations rose by just 0.2% from July to August 2023. However, this was not a sufficiently large enough uplift to offset the month-on-month drop of 0.3% from June, which was the first month-on-month drop of footfall in July for 14 years.” The gap to pre-Pandemic (2019) levels of footfall narrowed in August to -11%, an improvement over the -12.1% gap recorded in July. However, this gap was still broader than the gap of -8.6% seen in a relatively warm June. Wehrle added: “Despite the adverse outcome in August, a glimmer of optimism […]

M&S launches legal challenge against Oxford Street flagship decision

31st August 2023

Marks & Spencer has launched a legal challenge against the decision to reject redevelop plans for its flagship Oxford Street store. The plans for the Marble Arch store involved the demolition of the existing building, which has stood for nearly 100 years. In July, the secretary of state Michael Gove rejected the proposals 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”. In a statement released on Thursday, M&S operations director Sacha Berendji said: “Today we have launched a legal challenge against the government’s decision to reject our Marble Arch store proposal. “We have done this because we believe the secretary of state wrongly interpreted and applied planning policy, to justify his rejection of our scheme on grounds of heritage and environmental concerns. “It is hugely disappointing that after two years of support and approvals at every stage, we have been forced to take legal action to overcome a misguided agenda against our scheme, and we will be challenging this to the fullest extent possible.” Westminster City Council had previously approved proposals for the retailer to knock down the historic store […]

Job losses to go ahead at Wilko after bid collapses

31st August 2023

Hundreds of jobs at ailing retailer Wilko are set to be lost after a bid for the company fell through. It emerged on Thursday that private equity firm M2 Capital’s £90m offer for the retailer had fallen through after it was unable to provide proof of funding. Wilko’s administrators at PwC have now said that there is no viable offer to acquire the whole business. However, Robert Mantse, chair of M2 Capital, told BBC News that his dealings with PwC had been a “circus” and accused them of being “beyond unfair”. He added that M2 Capital is now considering legal action. Redundancies at Wilko had been put on hold while administrators considered M2 Capital’s offer, with the firm pledging to retain all staff members’ jobs for two years. Further job cuts at Wilko’s distribution centres in Worksop and Newport are now expected to go ahead from next week. PwC said all of the retailer’s stores are continuing to trade, adding that “discussions continue with those interested in buying parts of the business”. This includes HMV owner Doug Putman, Poundland owner Pepco, B&M, and The Original Factory Shop, who are reportedly eyeing parts of Wilko’s 400-strong estate. Wilko fell into administration earlier...

Revolution Beauty announces new CEO in directorate switch-up

31st August 2023

Revolution Beauty has announced the appointment of Lauren Brindley as chief executive officer, as the cosmetics brand switches up its board of directors. She will take on the role from 18 September, replacing Bob Holt, who will be standing down as CEO and leaving the company today (31 Aug) following an agreement with majority shareholder Boohoo. Brindley has worked in a number of senior management roles in mass consumer businesses with a specialisation in the beauty and personal care sectors. In her new role, she will be tasked with leading the group globally, delivering strategic growth, and creating long-term value for shareholders. Most recently, Brindley was the group vice president for beauty and personal care at American retail company Walgreens. In this role, she built a strategy to help elevate the business’s approach to omnichannel retailing, leading to an increase in its performance. Prior to Walgreens, she served in various roles at Boots including head of prestige beauty and fragrance and head of the No.7 brand and mass beauty categories. She also served as country manager for the business’s Southeast Asian operations. Brindley began her career at Tesco serving in multiple roles within marketing and merchandising. Alistair McGeorge will move […]

M&S makes return to FTSE 100

31st August 2023

Marks & Spencer has regained its spot as one of the top 100 companies on the London Stock Exchange after its shares rose to a 19-month high. It marks the first time the retailer has joined the FTSE 100 in four years after it closed hundreds of stores in 2019. Stuart Machin, M&S chief executive, said the news is a “reflection of everyone’s hard work”. “Although we’ve made progress, there is still so much more opportunity ahead, and my mantra with everyone is to stay positively dissatisfied; always seeking to raise the bar. As a team, we are very ambitious for the future of M&S and our focus is on reshaping the business for future growth”, he added. Last week, M&S said in a trading update it expects to deliver increased profits this year, despite originally anticipating a decline. The retailer posted an increase in food sales of 11% for the 19 weeks to 12 August, while clothing and home sales also increased by 6%. M&S’s shares increased by 9% after it released its trading update, bringing its market capitalisation to over £4.3bn. The retailer’s shares have increased in value by over 70% since the beginning of 2023. The retailer’s...