Retail Property News

RO Group acquires roadside site in Swindon earmarked for development

30th July 2024

The RO Group has completed the acquisition of Home Farm in Swindon, a roadside development site located on the A420. The group is set to develop a strategic mixed-use scheme on the 9.7 acre site, which offers potential for a number of uses including retail, industrial, logistics, and storage. The blueprint for the new development is RO Group’s Solstice Park development in Amesbury, which has been designed to accommodate a diverse range of businesses. RO Group also has a history of development in Swindon, having previously developed the RO24 industrial scheme at South Marston Park. Nick Cashmore, investment director of the RO Group, said: “We are delighted to have invested in Swindon, and we look forward to developing this site into a thriving mixed use scheme. We have diligently searched for sites in the South of England and are pleased to have now identified the perfect location for our next major development. “The site is excellently placed on the A420 Swindon to Oxford road making it an ideal location for a variety of potential uses. The area is already a hive of activity. Neighbouring occupiers include major retailers such as Sainsbury’s and Dunelm as well the regional distribution hubs for […]

Greggs opens nearly 100 stores in the first half of 2024

30th July 2024

Greggs opened 99 new stores – including 30 relocations – during the first half of 2024, as the bakery chain continues to expand. During the period, the operator closed 18 stores, resulting in a net increase in the size of its store estate of 51. Greggs, which had 2,524 shops trading at the period end, said it remains on track to achieve between 140 and 160 store openings by the end of 2024. In March, the chain said there is “clear opportunity for significantly more than 3,000 UK shops over the longer term”. This comes as the operator releases its interim results for the first half of the year, a period during which it recorded total sales of £960.6m, a year-on-year increase of 13.8%. During the period, which covered the 26 weeks ending 29 June, the group’s company-managed like-for-like sales were up by 7.4%. This has resulted in an underlying pre-tax profit excluding exceptional items of £74.1 million, representing a year-on-year increase of 16.3%. Roisin Currie, chief executive of Greggs, said: “Greggs has made good progress in the first half of the year, further broadening our range of on-the-go food and drink whilst making it more accessible to more customers. ...

Carpetright: landlords, suppliers, and customers owed £80m following collapse

29th July 2024

Carpetright’s landlords, suppliers, and customers have been left £80m out of pocket following the flooring retailer’s collapse. According to documents, the retailer’s creditors, including Condor and AW Weavers, were owed around £24m at the time of its collapse, The Times has reported. Carpetright also reportedly owes £30.9m to “other creditors”, including customers, and a further £15.6m to “other accruals”. The documents showed that the retailer accrued a total of £81.7m in liabilities by the end of April. Carpetright collapsed into administration earlier this month, before rival Tapi acquired the flooring retailer’s intellectual property, 54 of its stores, and two warehouses. However, this has led to the closure of 218 stores. Carpetright’s administrators PwC had appointed CBRE to sell 239 leasehold sites, including out-of-town stores, warehouses, and in-store concessions. Carpetright – which has struggled with a downturn in trading over the last few years – went through a form of insolvency proceedings in 2018 resulting in the closure of a number of stores. In April, it was reported that the retailer had drafted in advisers from Teneo as it looked to explore cost-cutting options.

Hobbs to open at Manchester’s Trafford Centre

29th July 2024

Womenswear brand Hobbs is set to open its 63rd standalone store in the UK at Manchester’s Trafford Centre this autumn. The 4,000 sq ft store, located on the Upper Regent Crescent, will stock the brand’s mainline range, as well as limited-edition collections. The store will feature Hobbs’ new reevaluated concept that will be rolled out to all of the brand’s future locations. This new concept looks to reflect a refined and contemporary aesthetic. Hobbs’ expansion forms part of a property strategy that aims to meet the evolving needs of customers, through an improved distribution of stores across the entirety of the UK. Caraline Money, global retail director at Hobbs, said: “Trafford Centre’s status as a premier and luxurious shopping destination aligns with Hobbs’ prestigious brand image and adds to the overall shopping experience for our customers. With high footfall and a wide catchment from across the region, we’re expecting to reach a broader audience, enhancing our presence in the North of England.” Kate Pearson, director of asset management at Pradera Lateral, Trafford Centre’s asset manager, added: “As a beloved British brand, Hobbs’ premium retail offering aligns perfectly with our existing range of luxury fashion brands. At Trafford Centre, we’re proud to be […]

All of Ted Baker’s UK stores to close

29th July 2024

Ted Baker is set to close all of its UK stores within the next three weeks under its restructuring plans. The retailer’s UK arm, No Ordinary Designer Label (NODL), appointed administrators in March, and has since closed 15 stores. Prior to its collapse, Ted Baker operated 46 stores in the UK. US company Authentic Brands Group (ABG), which owns Ted Baker’s intellectual property, has been searching for a new partner to operate the brand’s retail and online UK business. Next and Frasers Group have previously emerged as potential candidates, however The Sun has reported that the latter has pulled out. Since Ted Baker’s founder, Ray Kelvin, left the company in 2019 amid claims of inappropriate behaviour, it has issued a number of profit warnings and went into the COVID-19 pandemic from a difficult financial position The retailer was de-listed from the London Stock Exchange in 2022 after it was bought by ABG for about £210m. A subsequent brand licensing partnership with Dutch company AARC was also recently abandoned. Last year, a restructuring process saw the retailer let go of around 200 members of its head office staff. It then secured a long-term lending facility from asset-based lender Secure Trust Commercial Finance. It was […]

British Land signs trio of healthcare businesses at Manchester retail park

29th July 2024

British Land has leased a total of c.12,800 sq ft of space at Crownpoint Retail Park in Denton, Greater Manchester, to a trio of healthcare and veterinary operators. InHealth, the specialist provider of diagnostic and healthcare solutions, has taken a c.5,000 sq ft unit for a community diagnostic centre, whilst CVS Vets and MyDentist have taken c.2,500 sq ft and c.5,300 sq ft respectively. Crownpoint Retail Park comprises 36 units totalling 212,000 sq ft of space, and is let to a variety of occupiers across the retail, food and beverage, and healthcare sectors. The asset is located less than 40 minutes from central Manchester and 20 minutes from Stockport. Matthew Reed, head of retail parks at British Land, said: “With 40% of England’s population located within a 30-minute drive of British Land’s portfolio, leading healthcare brands are showing increasing interest in our retail parks.  “Providers embedded within the community are providing a crucial service for patients, cutting waiting times for core services such as blood tests or X-rays. This not only taps into a significant growth market but also broadens the demographic of our retail park customers and increases the reasons for visiting our retail parks and the time spent there.”...

Axel Arigato opens flagship store at Seven Dials

29th July 2024

Swedish footwear brand Axel Arigato has opened a flagship store at 21-23 Earlham Street at Covent Garden’s Seven Dials neighbourhood. The 2,500 sq ft store offers a range of womenswear, menswear, and accessories, and has been designed to be transformed into an events space, acting as a community hub. The new store becomes Axel Arigato’s second location within Shaftesbury Capital’s portfolio, following the launch of its first flagship space on Soho’s Broadwick Street. The brand’s arrival further enhances the line-up of specialist and luxury performancewear brands across the neighbourhood, including the UK debut of footwear retailer HOKA, the recent upsize of outdoor apparel retailer Finisterre, and the upcoming UK flagship opening of Alo Yoga. Michelle McGrath, executive director at Shaftesbury Capital, said: “The opening of Axel Arigato’s flagship store in Covent Garden signals another exciting development in the ongoing leasing momentum in Seven Dials’ neighbourhood. The highly innovative, dynamic brand bolsters not only the destination’s unrivalled line-up of performance-wear brands but marks the launch of yet another flagship space from a best-in-class international brand. Axel Arigato’s commitment to the Shaftesbury Capital portfolio through the launch of its second anchor location emphasises the strong collaborative relationship that we strive to curate […]

Cineworld to close the curtains on 25 sites in restructuring plan

26th July 2024

Cineworld is set to announce a restructuring plan which could see the closure of around 25 of its sites, cutting the size of the cinema chain’s UK estate by a quarter. Sky News has reported that the operator – which trades from over 100 sites in the UK – will release a restructuring plan on Friday. City sources said six Cineworld cinemas would begin a closure process immediately and close for good this summer. The operator has been in talks with some of the UK’s largest landlords – including Landsec and Legal & General – over restructuring plans. Some landlords are said to be in opposition to the proposals, however it is unclear whether a sufficient amount will be able to block the restructuring plan. Cineworld had initially held talks with prospective buyers about a potential sale of the business, but has since switched its focus to a restructuring process. The majority of the cinema chain’s creditors would need to approve proposals to close around 25 sites, with rent reductions being sought at a further 50. Should a sufficient number of landlords refuse to agree with the proposals, rival cinema chains are expected to take over some of Cineworld’s sites. The […]

John Lewis gets green light for Bromley BTR development

26th July 2024

The John Lewis Partnership (JLP) has been given the green light to transform its Waitrose site in Bromley to create 353 homes and a modernised store. The London Borough of Bromley has agreed, with the recommendation of its planning officers, to give a resolution of grant consent for the partnership’s application. JLP said that local people will be prioritised for the new homes, which will be developed, owned, and managed by the partnership. The group added that the investment will see the local economy boosted by an estimated £70m over the first 10 years, once homes are occupied. The proposals also outline the creation of new green public spaces, a café, and amenity spaces for local community groups and schools, as well as new paths through the area to link it to the high street and surrounding area. Katherine Russell, JLP’s director of build-to-rent, said: “We’re delighted that the elected members have agreed with the recommendations of their planning officials and after receiving significant support from the residents of Bromley. This now gives us the opportunity to enhance the local area, create vital new housing for the local people of Bromley and deliver a state-of-the-art Waitrose, which sits at the heart of […]

Industry body launches campaign to keep BOXPARK Shoreditch open

26th July 2024

Industry body The Night Time Industries Association (NTIA) has launched a campaign calling on Hackney Council to keep BOXPARK Shoreditch open. BOXPARK is set to vacate the site by the end of the summer, after reaching the expiration of its lease and being served notice by its landlord. This comes after the Mayor of London approved planning permission for the redevelopment of the 4.5 hectare site, with BOXPARK making way for new homes, retail, leisure, and office space, and a new park. Opening in 2011, BOXPARK Shoreditch began as a ‘meanwhile use’ scheme at Bishopsgate Goodsyard. The venue was created to provide a platform for independent businesses to develop their brand and served as a catalyst for the regeneration of Shoreditch. The NTIA described the scheme as a “vital” part of East London’s social and cultural fabric. The group said the site’s potential closure would not only “devastate” the businesses and individuals it supports, but also set back regeneration efforts in Shoreditch. The NTIA added that Hackney Council’s “failure” to protect the site would be a “glaring oversight”. Michael Kill, CEO of the NTIA, said: “Boxpark Shoreditch exemplifies the exact issue faced across the country with red tape and restrictive regulatory...

RICS: Retail property lagging behind office and industrial

26th July 2024

The Royal Institute of Chartered Surveyors (RICS) has found that high street properties underperformed compared to other commercial sectors during the second quarter of 2024. According to the latest Royal Institution of Chartered Surveyors UK Commercial Property Monitor, the commercial viability of the UK’s high streets must be improved, as retail lags behind office and industrial property. The monitor found that overall confidence in the UK’s commercial property market remained flat during the second quarter of 2024. Meanwhile, the performance gap between prime and secondary property, and between London and the rest of the country, continued to widen. Tenant demand across all commercial sectors also remained flat (+4% net balance), with industrial property and offices outperforming retail, where respondents are seeing a slight decrease in tenant demand. However, in a sign of improved positivity, 41% believe that the market is in an early recovery stage, whilst 34% think the market has reached its bottom. RICS senior public affairs officer, Sam Rees, said: “When it comes to commercial property, there remains a need to increase investment in retail and the high street. The Government have talked about several ways to improve retail conditions including introducing high street banking hubs, the revamping […]

Supermarket Income REIT completes £170m refinancing

26th July 2024

Supermarket Income REIT, the real estate investment trust providing long income from grocery property, has announced the completion of a £170m refinancing through its first private placement debt issuance and a new unsecured bank facility. The REIT has completed an agreement with a group of institutional investors for a private placement of €83m (£70m) of new senior unsecured notes. The notes have a maturity of seven years and a fixed rate coupon of 4.44%. The group said the proceeds will be used to refinance euro drawings under an existing secured revolving credit facility with HSBC, which had been used to fund a recent acquisition of a portfolio of 17 stores from Carrefour. Supermarket Income REIT has also refinanced its existing £97m secured debt facility with Deka through a new £100m unsecured debt facility with ING. The facility comprises a £75m term loan and a £25m revolving credit facility. The interest-only facility has a maturity of three years and has two one-year extension options at the lender’s discretion. Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, said:  “We are very pleased at the support we have received from new institutional investors both for the company’s new...