Retail Property News

Roadside Retail Development Sold To LondonMetric

Godwin sells Uttoxeter roadside development to LondonMetric

26th September 2022

UK property developer Godwin Developments has announced the joint land, lease and investment sale of a roadside retail site in Uttoxeter to LondonMetric Property, the FTSE 250 listed real estate investment trust (REIT) for just under £2 million. The transaction is the second in as many years between the two businesses, following the May 2020 disposal of a roadside convenience site in Rushden, Northamptonshire. The deal includes a long lease with The EV Network, an independent EV charging infrastructure company, that will operate the site once built. The scheme will feature a Starbucks roadside retail store, six ultra-rapid EV charge points (150kW+), 26 parking bays as well as cycle storage and pedestrian access from the nearby Lidl food store. Godwin Developments acquired the site in November 2021 and secured planning permission for a new commercial scheme in July this year, alongside occupier commitment from Starbucks’ drive-thru franchise partner, The Magic Bean Company. Claudine Tracey, Associate Director of Commercial Development at Godwin Developments, said: “We’re really pleased to have completed the sale of our commercial scheme at Uttoxeter to LondonMetric. The deal highlights once again our ability to acquire land with attractive fundamentals, our expertise in securing planning consent and end […]

LXi REIT cancels £500 million purchase of 18 Sainsbury’s stores

26th September 2022

LXi REIT PLC announced on Monday that it will not move forward with the acquisition of 18 stores owned by J Sainsbury PLC, due to ‘current stock-market volatility.’ The market value of investment trust LXi REIT is approximately £2.5 billion. It is a part of the FTSE-250 index and invests in commercial real estate assets with lengthy leases that typically last decades. The issuing of new LXi shares was due to partially finance the £500 million purchase. However, LXi’s stock price has dropped 13% over the last five days, and on Monday morning, it was down 1.7% to 125.40 pence per share. Sainsbury’s shares closed the London market 0.3% higher at 193.50 pence each. LXi and Sainsbury’s announced the deal on 21st September. The stores, which are situated in the southern region of England, would have had a net initial yield of about 5.0% and would have been leased back to Sainsbury’s Supermarkets Ltd., according to LXi. Sainsbury’s stated that the cancelled sale has no effect on its financial forecast. The supermarket chain had planned to use the sale proceeds to buy 21 freehold Sainsbury’s supermarkets from the Highbury and Dragon portfolios. Sainsbury’s still anticipates that it will close these acquisitions in the...

Pound drops as concerns about a UK recession are fuelled by weak retail sales

16th September 2022

A drop in retail sales last month sparked heavy selling of the pound on global money markets, pushing it to a 37-year low against the dollar, as investors feared that the British economy had already entered a recession. The Bank of England is due to raise interest rates next week, which will cause average UK wages to continue to lag behind rising prices. As a result, sterling dropped more than 1% against the US dollar to $1.135, its lowest level since 1985. The pound also hit a 17-month low against the euro on Black Wednesday, the 30th anniversary of the day the UK abruptly left the European Exchange Rate Mechanism, with €1 being worth 87.66p. Retail sales fell by 1.6% in August compared with July – more than anticipated Retail sales in Great Britain were being impacted by rising prices and cost of living, according to the ONS, and economists warned that there were signs that the economy was already in a recession. The government’s $150 billion energy price freeze plan, according to economist Olivia Cross of Capital Economics, is expected to make the UK recession shorter and milder, but all the signs point to the economy already contracting. “The 1.6% […]

GCW makes key appointments

14th September 2022

GCW has announced a trio of appointments as it continues to strengthen its team. The agency has welcomed a number of new recruits in recent months and the latest arrivals will play a key role in helping GCW meet growing client demand for its town centre expertise. Will Mabbett is joining the Occupier Team in October as Director. He brings with him 10 years of experience in working with a broad range of national and international retailers on their UK store portfolios. He is joining from Harper Dennis Hobbs. John Eden has been appointed as an Associate Director specialising in lease advisory work for both property owners and occupiers on high street and shopping centre assets across the UK. He was formerly at JLL. Meanwhile, Ben Legard joined the busy Investor Team as Senior Surveyor. Having previously worked at CBRE, Ben will be working on both national acquisitions and disposals. GCW Managing Partner Duncan Kite said: “Building our talent base is a top priority for GCW as we continue on our expansion drive. We are delighted to welcome our latest recruits who really build on our capabilities and will help deliver our growth strategy. It’s always great to bring in […]