Retail Property News

Glasgow green lights 2030 regeneration plan

22nd March 2024

Councillors in Glasgow have approved proposals to deliver significant regeneration to the city centre by 2030. Included in the City Centre Strategy are new retail and leisure destinations created through the wholesale overhaul of Buchanan Galleries and the St Enoch Centre. The multi-billion pound strategy – which was approved by Glasgow City Council on Wednesday – will also see the progression of residential developments and the expansion of innovation sectors around universities. Since 2019, Glasgow city centre has received over £200m of public sector investment with £120million already committed to ongoing projects that will span the duration of the new strategy. Plans for a revamped George Square are set to be delivered over the next two years, with a city centre greening programme planned and the transformation of key streets such as Sauchiehall Street Precinct and Argyle Street already underway in 2024. The city has already seen £1bn worth of investments across major office, residential, hospitality and public realm developments – including at Candleriggs Square, the Barclays campus in Tradeston, the Love Loan development at George Street, JPMorgan Chase at Argyle Street, and the new Moda residential complex at the former Strathclyde Police headquarters on Pitt Street. Councillor Angus Millar, convener […]

NewRiver announces new chair designate

22nd March 2024

NewRiver has announced the appointment of Lynn Fordham as chair designate and as an independent non-executive director of its nomination committee. Lynn will succeed Baroness Margaret Ford as chair of the board when she steps down from the role in May. She currently holds the roles of non-executive director and audit committee chair at NCC Group, Caledonia Investments, Domino’s Pizza Group and is a non-executive Director of Enfinium Group. Lynn was previously non-executive director of VARO Energy and Fuller, Smith & Turner. Her most recent executive role was as managing partner of Larchpoint Capital, a private equity investment firm. Prior to this, Lynn was chief executive officer and executive director of investment vehicle SVG Capital. She has also held senior finance roles at Barratt Developments, BAA, and Boots. In her early career, Lynn trained as a chartered accountant with Peat Marwick and held various roles in audit, risk, strategy and finance with British American Tobacco, ED& F Man Group, Chubb, Boots, and BAA. Alastair Miller, NewRiver senior independent director, said: “Following the completion of a thorough process supported by an international executive search consultancy, we are very pleased to have secured a chair of Lynn’s calibre. Lynn is a seasoned Plc...

JD Wetherspoon says it has potential for 1,000 pubs

22nd March 2024

JD Wetherspoon has said it estimates that it has potential for about 1,000 pubs in the UK. The pub giant has been reducing the size of its estate over the last decade, trading from 814 pubs at the end of January, down from a peak of 955 sites in December 2015. JD Wetherspoon said that despite a reduction in the number of its pubs, sales have continued to increase, with total sales now one third higher than in 2015, when the size of its estate peaked, while sales per pub have also increased by around 50% since then. Since 2010, the pub group has invested £448m in acquiring the freehold reversions of pubs where it was previously the tenant. 71% of the group’s pubs are now freehold, up from 41% in 2010. JD Wetherspoon has also recently opened pubs such as the Captain Flinders near Euston Station, London; the Stargazer, The O2; The Star Light, Heathrow Airport, and the Scribbling Mill at White Rose Shopping Centre, Leeds. This comes as the group releases its results for the half year ending 26 January 2024, a period during which its like-for-like sales increased year-on-year by 9.9%. During the period, group revenue increased […]

Joint venture acquires former Coventry Sainsbury’s for £3.3m

22nd March 2024

A joint venture (JV) between Roadside Real Estate and Meadow Partners has completed the acquisition of a former Sainsbury’s supermarket in Coventry for £3.26m. The acquisition will be funded in line with the terms of the JV’s equity commitments, with Meadow owning and funding 97% of the JV, whilst Roadside Real Estate own and fund the remaining 3%. The asset fronts on to the A444 and comprises a 72,091 sq ft purpose-built former supermarket, a petrol filling station, and a 407-space car park. Nearby occupiers include The Range and Selco. Roadside Real Estate said the site offers potential for development of a new roadside scheme with an electric vehicle charging hub, with options at the rear of the property for retail or other uses including logistics. The site has been purchased with vacant possession, allowing the JV to review its configuration with a view towards redevelopment to serve a number of complementary tenants. Roadside Real Estate said it has already received expressions of interest from several household name brands focused on drive thru and “foodvenience” offerings. It added that the JV will engage with its electric vehicle (EV) charging partners to find the optimal charging hub configuration for the site. […]

Supermarket Income checks out £34.7m Stoke Tesco acquisition

22nd March 2024

Supermarket Income REIT has completed the acquisition of a Tesco supermarket in Stoke-on-Trent for £34.7m, reflecting a net initial yield of 7.5%. Constructed in 1994, the 54,451 sq ft net sales area supermarket sits on a 8.7 acre site and is supplemented by a petrol filling station, also included in the acquisition. The store support’s Tesco’s online operations through both home delivery and click-and-collect services. The asset is being acquired with an unexpired lease term of 11 years, and is subject to annual inflation-linked rent reviews. The acquisition has been funded through the drawdown of Supermarket Income REIT’s revolving credit facility. Supermarket Income REIT focuses on investing in grocery stores with an omnichannel offering, fulfilling online and in-person sales. The company’s supermarkets are let to leading UK operators across the country. Last autumn, the REIT saw its annual rental income reach over £100m, which it said reflected the resilience of the grocery sector.

East London retail park snapped up in fledgling property fund’s third deal

22nd March 2024

A recently-launched property fund has acquired a retail park in East London in its third investment. DTZ Investors acquired Goodmayes Retail Park in Chadwell Heath from Landsec on behalf of LGPS Central’s UK Direct Property Fund, which was launched in late 2023. The 100,000 sq ft+ scheme is let to a range of retailers including Wickes, Currys, Carpetright, The Gym, Nandos, Costa, and Masala Bazaar. The park is located in an area that is expected to see new investment in homes, jobs, and social infrastructure owing to its close proximity to the new Crossrail stations at Goodmayes and Chadwell Heath. The UK Direct Property Fund is a sub-fund of the LGPS Central Property ACS, developed in collaboration with LGPS Central’s Partner Funds and managed in partnership with DTZ Investors. The fund is aiming to invest up to £500m across the UK in the medium-term. The fund has previously invested in Clayton Business Centre, a multi-let industrial estate in West London, as well as an industrial and car showroom investment in Enfield. Mike Hardwick, investment director for property investments at LGPS Central, said: “While the availability of investment opportunities remains constrained we are pleased to have secured a further investment for...

Aldi unveils wish list of priority London locations

21st March 2024

Aldi has revealed its list of priority locations in London where it is looking to open new stores. The supermarket retailer recently announced its long-term plan to operate 1,500 stores across the UK, with a particular interest in locations within the M25 due to strong demand. As part of a £500m investment to increase its presence in London, Aldi is aiming to open a further 100 stores within the M25. Priority locations include: Aldi is offering a finder’s fee for property agents, who recommend a previously unknown site, of 1.5% of a freehold price or 10% of the first year’s rent for leasehold sites. The retailer is on the hunt for sites at least 20,000 sq ft in size for its standard stores, with around 100 dedicated parking spaces and preferably on a main road with good access and visibility. Aldi is also looking for smaller sites to accommodate its Aldi Local format, which are around 5,000 sq ft in size. Jonathan Neale, managing director of national real estate at Aldi UK, said: “We want to make high quality, affordable food accessible to all, but there are still many areas in the capital that don’t have access to an Aldi […]

Next says no plans for expansion despite record profits

21st March 2024

Next has said that it does not anticipate “any material net change” in its retail selling space in 2024, despite posting record profits. The retailer – which operated 458 stores as of January – said it will continue to open and close a small number of stores. In 2023, Next renewed 56 leases, with an average lease term of 3.9 years. The retailer said the renewals reduced its annualised occupancy cash costs by £6.7m. The number of renewals was lower than Next’s estimation of 73 given in its half year results in September. The remaining leases are still under negotiation, with eight in the final stages of legal agreements while Next anticipates renewing the remaining nine in the first half of the year. By the end of January, Next’s average lease commitment (weighted by value) was 4.5 years, compared to 4.7 years at the same point the previous year. 50% of its store leases (by value) will expire or break within 3.9 years, and 95% within the next ten years. In 2024, Next expects to renegotiate 74 store leases, and based on its latest negotiations, the retailer expects to reduce its annualised occupancy cash costs by around £3m (-16%). The average […]

Rocket Padel to serve up at Battersea Power Station

21st March 2024

Rocket Padel is set to open London’s first riverside indoor padel courts at Battersea Power Station. It marks a return to the scheme for the operator, after hosting a successful padel court pop-up at The Battersea Games in 2023. The courts will be in place for five years and be located to the east of the Grade II-listed landmark, alongside an immersive exhibition space. Padel is a highly popular, emerging sport which incorporates aspects of tennis, badminton and squash and is played with small racquets without strings. Stockholm-based Rocket Padel will offer community-focused programmes with local youth organisations, charities, and schools, benefitting from free taster sessions at the padel courts. Landscaped public realm will sit alongside the padel courts, adding to the green spaces already available at the riverside neighbourhood, including the six-acre Power Station Park. Sam Cotton, head of asset management at Battersea Power Station Development Company, said: “We are always looking for new ways to activate parts of the riverside neighbourhood as we deliver the Battersea Power Station masterplan and are excited to be working with the Rocket Padel team again to open the first riverside Padel courts in Central London. Rocket Padel are leaders in their field, and […]

Stack’s Northampton shopping centre redevelopment green lit

21st March 2024

Plans put forward by leisure operator Stack for the redevelopment of a shopping centre in Northampton have been approved by councillors. Under the proposals, Market Walk shopping centre will be redeveloped to make way for independent street food outlets, bars, a dedicated space for interactive games, and a main stage for live music and entertainment. The scheme – which Stack acquired in August 2023 – has lain vacant for a number of years. The development is being supported by West Northamptonshire Council, which will provide up to £4.2m worth of investment through its Towns Fund, with an additional £8m investment from STACK. West Northamptonshire Council’s strategic planning committee approved the scheme on Tuesday (19th March). When the scheme’s acquisition was announced, Neill Winch, CEO of STACK, said: “With its prime location in the heart of the town centre, STACK presents an excellent opportunity to create a dynamic and convenient destination for visitors and residents alike.” The development will look to complement other transformations taking place in the town centre, including in Market Square, Abington Street and Fish Street. “The ongoing investment in Northampton’s Market Square to revitalise the town centre aligns perfectly with our vision. By introducing STACK during this...

Commercial real estate market boomed in 2023 despite economic challenges

21st March 2024

Commercial real estate activity saw a boom in 2023 despite economic challenges, according to a new report. Research from Local Data Company (LDC) and Green Street found a spike in the number of both closures and openings in the retail and leisure sectors, representing significant churn. The year saw increases in interest rates and operational costs, compounding challenges already faced by British businesses and leading to a year-on-year increase in closures of 14%, the report found. However, these closures were somewhat mitigated by an increase in openings of 5% during the same period. The report said that innovative changes of use and retail-to-residential conversions have become increasingly attractive and offer an economically viable option to address vacancies, align locations with current demand, and revitalise town centres. Historical openings and closures across GB, 2013 – 2023 (Local Data Company, Green Street) Retail parks were found to have performed particularly well, continuing the positive trajectory they have recorded over recent years. They were also the only location type to have seen a positive change in 2023, recording a net increase in units of 0.4%. Demand also remained high for retail park units, driving a 1.4% year-on-year decrease in vacancy rate. A further […]

Manchester’s Printworks unveils £21m transformation

20th March 2024

The refurbishment of Manchester’s Printworks leisure scheme has been revealed following a £21m investment. At the centrepiece of the refurbishment is a 10,764 sq ft digital ceiling screen – the largest in Europe – covering the scheme’s internal streets. It is complemented by an interactive gaming screen as well as other features such as newly-designed gateway entrances and public realm upgrades. Following a city-wide competition, a 210 square metre public art piece, created by Alex Sylt, has been installed at the scheme. It was chosen by the people of Manchester in a public vote as well as a panel of judges including Norman Cook, AKA Fatboy Slim. Ben Haller, director at scheme owner DTZ Investors, said: “This transformation is without precedent and is a game changer for the UK leisure sector. We’ve created something unique at Printworks which will continue to entertain domestic and international visitors for years to come. This has only been possible due to the dedication and commitment from a large professional team, overcoming many challenges through the last five years from inception to delivery. “Printworks has been a successful and resilient scheme since opening, over 20 years ago. DTZ Investors is responding to the changes seen in...