Retail Property News

British Property Federation and the UK PropTech Association set to merge

17th April 2023

The British Property Federation (BPF) and the UK PropTech (Property Technology) Association (UKPA) are preparing to merge their two organisations as they look to “drive innovation in the property sector”. The merger would see nearly 400 property owners, investors, developers, and advisors within the BPF brought together with the UKPA’s community of over 1,000 entrepreneurs, solution providers, venture capital investors, and proptech innovators. The merger is expected to be completed in June and would see the UKPA become a subsidiary of the BPF. The organisations said it is intended that there will be no change to the terms of membership for either BPF or UKPA members in the short term and that UKPA will operate under its current name.    Melanie Leech, chief executive of the BPF, said the future health of the property sector and its ability to tackle challenges will “depend on its commitment to embracing new technologies and fully harnessing the power of data”. “We believe the integration of the UKPA within the BPF will create a powerful combined voice and new platform for knowledge-sharing and collaboration across the industry as we work to embed innovation and technology in all facets of property development and management. We look […]

£205,000 of Levelling Up funds for Hull museum retail transformation

17th April 2023

A former museum in Hull is set to become the site of ten shops after Hull City Council granted £205,000 worth of Levelling Up funding to the vacant unit. The £450,000 project will see the creation of 4,843 sq ft of retail space over two floors at West Street Arcade. The renovation will include a rewire of the building, the installation of fixtures and fittings, and the replacement of all the windows. The building received planning permission after MMR Investment applied for a full restoration in 2021. Garry Taylor, assistant director for major projects, culture and place at Hull City Council, said the project was “another great example of excellent regeneration work done in the city centre.” In November 2021, the Department of Levelling Up, Housing, and Communities informed Hull City Council that its bid for £19.5m of Round 1 Levelling Up Funds had been successful. £7.5m of this fund will be used as part of a new grant scheme designed to bring vacant floorspace back into use. Hull City Council has also approved a Levelling Up grant of £750,000 which will see the renovation of office space at House of Hammonds.

Caffé Nero targets retail park expansion

17th April 2023

Caffé Nero is looking to open at at retail parks across the UK as it aims to open drive-thru and ‘drive-to’ locations. Agents from McMullen Real Estate have been appointed to help the coffee chain, which currently operates over 600 UK shops, find suitable locations for expansion. Caffé Nero is seeking drive-thru sites at least 0.3 acres in size, with units ranging from 1,800 sq ft to 2,200 sq ft. Ideal sites would be supplemented by dedicated or shared car parking. Potential drive-to sites would be 1,500 sq ft to 2,000 sq ft freestanding pods. Every Caffé Nero site is company-managed, with no franchised stores.

Plans approved for Newcastle aparthotel and restaurant redevelopment

17th April 2023

Plans for a 13-apartment aparthotel with an accompanying café restaurant have been approved by Newcastle City Council. The project will see the redevelopment of a Grade II listed site at 1 Old Eldon Square which has been vacant for a number of years. The aparthotel scheme will be spread across the first, second, and third floors with the further development of a café restaurant overlooking Old Eldon Square. The firm behind the development, Belgravia Investment Group, said it would have little to no impact on the building’s historic fabric and will help secure its future. The plans would see the retention of a number of historic features of the 19th century building, including fireplaces and cornices, as well as the refurbishment of a number of fixtures and fittings. Sean Hedley, managing director at Hedley Planning Services, who secured approval from the council, said: “This is an exciting regeneration investment that will bring an important historic location back to life. The serviced rooms and studios will deliver a much-needed style of flexible visitor accommodation. In Newcastle city centre a demand exists for alternative visitor accommodation to a non-distinct hotel room.” Hedley Planning Services has also recently secured planning approval to transform […]

QUIZ forecasts increased profits but warns of “external headwinds”

17th April 2023

QUIZ is anticipating an improvement in profits for the 2023 financial year (FY23), but has warned that difficult external factors are likely to continue into the next year. The clothing retailer is anticipating a profit before tax of at least £2m for the year to March 31 2023, up from £0.8m the previous year. The group’s total revenue across its UK, international, and online businesses increased 17% from £78.4m to £91.7m over the year. In the early months of the FY23, QUIZ said it benefited from a recovery in consumer demand following the lifting of Coronavirus-related restrictions, however the retailer added that year-on-year growth was quelled by a lack of consumer confidence due to inflationary pressures. As a result, the retailer’s like-for-like revenues took a hit in February and March 2023 but QUIZ said that group revenues in the final three months of FY23 were “broadly consistent” with pre-Pandemic levels for the same period. However, the retailer urged caution for the year ahead: “The widely reported and significant pressures on consumer spending seen in recent months are expected to continue into the new financial year. The board believes these external headwinds may impact consumer demand across the group’s sector over […]

Liverpool ONE set to host Eurovision pop-up

17th April 2023

Liverpool ONE is set to welcome the official Eurovision Song Contest pop-up store, as the city prepares to host the competition on behalf of 2022’s winners Ukraine. Taking a 1,400 sq ft unit on Manesty’s Lane, the one-of-a-kind store will open from May 1 to May 14. The pop-up store will feature a range of merchandise, including clothing, mugs, and replicas of the Eurovision Song Contest trophy. The competition’s final is taking place at Liverpool’s M&S Bank Arena on May 13 with the semi-finals on May 9 and 11. Liverpool City Region Combined Authority is anticipating a boost of £25m to the local economy with a further 5% increase in tourism revenue annually, totalling an additional £250m of spend by 2026. Grosvenor says it is expecting an increase in footfall of 25% at Liverpool ONE during the song contest. The scheme has launched a programme of music, arts, and community-led events set to take place in the run up to the competition. Chavasse Park, which sits at the centre of Liverpool ONE, will host a week of music, theatre, and dance performances. Donna Howitt, place strategy director at Liverpool ONE, said: “We strive to place community and culture at the...

Liverpool to receive £5 million injection following BID vote

14th April 2023

Liverpool City Centre is set to receive a £5m investment after business voted in favour of the Retail & Leisure BID (business improvement district). The investment will go towards animation and marketing, street cleaning and maintenance of the public realm, as well as networking and business events. It will be the city centre’s fifth term as a BID, with the scheme running until 2028. The BID area previously stretched from Lord Street to Bold Street, Renshaw Street, Williamson Square and the Cavern Quarter. It will now extend to Hope Street. Liverpool BID is a not-for-profit organisation funded by an annual levy paid by eligible businesses in designated areas of the city. Established in 2005, there are now 1,000 businesses in the city centre which are part of the Liverpool BID. The budget will see a spend of £850k in the first year, followed by £900k+ in the next three years and finally £1m+ in the fifth and final year. Bill Addy, CEO of Liverpool BID Company, said: “To be a destination for visitors and investors, Liverpool has to be a place that works for everyone. Our rich mixed economy, in culture, retail, leisure, hospitality and commerce helps us to be […]

Investors back Hammerson in Lighthouse standoff

14th April 2023

Two of Hammerson’s investors, Legal and General Investment Management (LGIM) and Schroders, have backed the real estate investment trust (REIT) in an internal dispute with its biggest shareholder, Sky News has reported. Investment vehicle Lighthouse has tabled resolutions to appoint two new board members due to its discontent with Hammerson’s current strategy. It is headed by former Hammerson director Desmond de Beer and controls nearly 23% of the REIT. Lighthouse wants Hammerson to speed up asset sales and resume dividend payments. In a letter published in the REIT’s annual report, it said it did “not have confidence in the Hammerson board as currently constituted, having regard to the operational and strategic weaknesses reflected in Hammerson”. De Beers left the board last October and expressed discontent with Hammerson’s record of reducing administration costs. However LGIM and Schroders, which own over 6% of the REIT between them, are joined by Hammerson’s second-largest investor APG, which owns a 20% stake and also opposes Lighthouse’s proposals. Speaking to Sky News, a Schroders spokesperson said: “As a long-term active investor in Hammerson, our aim is to use our influence to engage constructively and thoughtfully with the companies in which we invest. “We support the board’s […]

AO again increases profit guidance for third time in 2023

14th April 2023

AO has upped its profit guidance for the third time this year, following on from increases in January and February. The online electrical retailer said it has continued to see positive traction from its initiatives to reduce costs and improve its margins. It added that adverse effects arising from trading risks, continuing macroeconomic uncertainty, and a tough consumer environment, have not materialised to the extent it anticipated in its February statement. The retailer is now anticipating its UK revenues for the year to 31 March to reach £1.13bn, in line with its plans. Its February statement estimated an EBITDA in the range of £37.5m to £45m for the financial year. The company has also renewed its £80m revolving credit facility with HSBC, NatWest, and Barclays, extending to April 2026. John Roberts, CEO and Founder, commented: “We are encouraged by the work undertaken to pivot the business during the financial year 2023. AO enters the new financial year with net funds on the balance sheet, a robust trajectory, and full confidence in our ability to deliver on our medium-term profit guidance of 5% adjusted EBITDA. We anticipate that our progress in improving both operational cost efficiencies and margin in FY23 will […]

Home Bargains seeking sites for “aggressive expansion strategy”

14th April 2023

Home Bargains is looking for more sites to build on its “ongoing success”. Currently trading from over 595 UK outlets, the discount retailer has an “aggressive expansion strategy”. The retailer said it has already secured sites for this year and the next, but says more are required. Agents from bennett., SMART4, Biggart & Company, and Dylan Jones Retail have been appointed to find ideal spaces for the retailer. Home Bargains is looking for development sites in excess of two acres with Open A1 planning consent across the UK, in cities, towns, and suburbs with a catchment of no less than 30,000. Ideal sites for the retailer will have a ground floor slab of 25,000-40,000 sq ft with direct rear servicing for 16.5m long articulated vehicles. Home Bargains is considering freehold, leasehold, and development opportunities.

Plans submitted to transform Manchester railway arches into retail and leisure spaces

14th April 2023

The Arch Company has submitted plans to Manchester City Council which could see the transformation of ten derelict railway arches on Corporate Street into retail, leisure, and hospitality spaces. The £4m development will see new glazed frontages, services and drainage, as well as internal lining to keep the accommodation dry. The arches, most of which have been derelict for 10 years, were predominantly used for industrial purposes but have since fell out of use. The Arch Company say the development will help the units realise their potential and create a vibrant environment for locals. The investment falls under The Arch Company’s Project 1000 – a £200m development plan designed to bring a thousand empty or derelict spaces across England and Wales into use by 2030. Its other developments in Manchester include the development of arches on Temperance Street and Bennett Street. Rob Roddy, portfolio asset manager at The Arch Company, said: “Corporation Street is a fantastic location for leisure and retail businesses to make their own – we see incredible potential in these railway arches. As part of our development plan, Project 1000, we’re committed to investing in 1,000 spaces by 2030 and hope these arches in Manchester will form part […]

Superdry withdraws profit guidance amid slow growth

14th April 2023

Superdry has withdrawn its full year profit guidance of “broadly breakeven” for its 2023 financial year after a slower period of growth than anticipated. The fashion retailer said that sales in February and March had not met its expectations despite significant year-on-year like-for-like growth, which it added was not helped by external factors such as the cost-of-living crisis and poor weather. The group’s wholesale division has also continued to “lag behind”, although Superdry said that it is making progress with its partners to support recovery. The retailer now expects its full year revenue to be between £615m to £635m (FY22: £609m). Superdry says it has identified initial cost savings in excess of £35m which have been externally validated. It says these will be achieved through estate optimisation, logistics and distribution savings, better procurement, and continued range reduction. Julian Dunkerton, founder and chief executive officer of Superdry, said: “The Superdry brand continues to evolve but there is no doubt that the market conditions we face are challenging, compounded by the issues we have previously disclosed and are working to address in wholesale. As a result, while we continue to deliver like-for-like growth in retail sales, we need to ensure our business...