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  • 1. September 2012 At your leisure The new shopping centre experience has leisure at its heart ● Digital shift UK shopping centres are embracing technology ● High street review the key challenges still facing town centres ● Global ambition why retailers are exploring key international markets ● Right-sizing how ecommerce and convenience are influencing grocers’ portfolios RetailWeek PROPERTY In association with:
  • 2. Prologis is a leading provider of distribution buildings with over 800 acres of strategic land across the UK, including 200 acres that is fully serviced and ready for development. You can never have too many shoes. Or can you? If your current distribution facility is feeling a little tight, Prologis has land and buildings available in strategic locations at a size to suit you. We can deliver a new, sustainable warehouse on as little as a 5 year lease basis including a full generic fit-out. And what’s more, you could save up to £500,000 p.a. in running costs alone. As if you needed an excuse… Your local partner to global trade
  • 3. | September 2012 | RWP 3 Property’s change of pace In terms of retail property, 2012 has been a year of extremes. The first year in a long time with no glitzy shopping centre opening; the year that put the brakes on grocers’ race for space; and the year of rolling headlines of domestic property portfolio consolidation, coupled with ambitious overseas expansion. Nonetheless, while mega-mall openings might have been notably absent, developers have not been idle. Making the most of existing property stock has been the name of the game, and many are revisiting opportunities offered by more small scale developments. In fact property has moved beyond pure bricks-and-mortar considerations, with landlords and retailers increasingly factoring consumers’ multichannel behaviour into their store portfolio decisions. As our feature (page six) explores, this has brought a two-pronged approach. Shopping destinations are integrating new technology – through free wi-fi or digital marketing stunts, for instance – to draw footfall and boost sales, and retailers are increasingly considering downsized formats in combination with services such as click-and-collect to more successfully meet consumer requirements. Investment in shopping destinations’leisure mix is also top of the agenda (page 37), with many developers announcing ambitious plans of leisure extensions to existing schemes. But while leisure has been part of shopping centres for some time, the ambition and scale is growing. And as our feature shows, they are being integrated in more thoughtful ways. Meanwhile, the UK high street has received many column inches over the past year, as Mary Portas’ review was published and 27 Portas Pilot towns revealed. But while her recommendations, such as mentoring for independent retailers and creating satellite markets,are welcome,many property experts feel such soft measures are not enough. More fundamental change is needed, with local as well as national government required to act forcefully. As our feature (page 12) shows, many feel the high street will survive, but in a decidedly different incarnation. And flexibility and collaboration will be vital in determining the right future model. As the UK high street struggles to reinvent itself, retailers are looking to foreign destinations for growth. Again, this year has brought some big initiatives enabling UK retailers to open stores across the globe. But overseas openings come with unique challenges, dependent on local market peculiarities, and even well-trodden regions throw up new challenges. The Middle East and China have seen an influx of UK retailers for some time, but as our feature explores (page 25), even here retailers need to adapt store formats to suit changing consumer needs. Back on British shores during this year of extremes, the Olympics shone a welcome spotlight on the country this summer. While the immediate fillip to footfall and sales is still rather unclear,the Games’legacy is yet to play out.Its lessons in property devel- opment and mixed-use destinations that encourage social get-together will certainly be worth exploring in 2013. Anna Richardson Taylor, Supplement Editor Contents 6 Assets Have shopping destinations reached the technology tipping point? 12 High street Why the future of the high street depends on firm measures, flexibility and collaboration 17 Grocers How ecommerce and a shift towards convenience are influencing grocers’ property strategy 25 International Why retailers are realigning their store portfolios in key overseas markets 31 Logistics Retailers are radically changing distribution centre requirements 37 Leisure The new leisure offers that are integral to successful shopping destinations 43 BCSC preview What’s on the agenda at this year’s conference 47 Deals digest Retail property deals around the UK Supplement Editor Anna Richardson Taylor Contributors Ben Cooper, Mark Faithfull, Gina Lovett Supplements and Projects Production Editor Tracey Gardner Art Editor Jon Hart Design Vernon Adams Advertising Manager Paul Stewart (020 7728 3555) Account Manager Jennifer Saunders (020 7728 3849) Commercial Director Mandy Cluskey Managing Director, Retail Tracey Davies © Retail Week All material is strictly copyright and all rights were reserved. Reproduction in whole or in part without the written permission of Retail Week is strictly forbidden. The greatest care has been taken to ensure the accuracy of information in this magazine at the time of going to press, but we accept no responsibility for omissions or errors. The views expressed in the magazine are not necessarily those of Retail Week. Retail Week Property is printed by Headley Brothers Ltd. Ashford, Kent RetailWeek PROPERTY In association with:
  • 4. Innesco is a leading marketing and communications agency working within the property and retail sectors. We represent a variety of shopping centres, developments, destinations and brands in the UK and abroad. We create strategic marketing communication programmes that bring brand visions to life and deliver exceptional ROI, ensuring that our clients consistently stand out from the crowd. To meet one of our team at BCSC please call 0207 409 3434 or email Building reputations at BCSC Marketing | PR | Media Relations | Public Affairs | Digital | Advertising | Brand Development | Events and Promotions Image:WestfieldStratfordCity,London
  • 5. | September 2012 | RWP 5In association with: The longer-term view We talk of unprecedented change but we should remember that retail has always been a dynamic market – evolving with movements in fashion, taste, demographic shift, global trends, spending power and technology. What we’re experiencing now is fundamental structural change – a merging of physical and online retailing from which there is no going back. This requires a reworking of built environments to create an experience that competes with the electronic alternative. That means changes in ownership, creation of partnerships, embracing technology, and a supportive planning regime. And then there’s pricing. There remain plenty of prime spots where the business case stacks up for retailers but many others that need to price themselves back into the market. Pick any retailing location that thrives today, whether it is in London or regional UK, and it is because all these elements are in place. Look more carefully and you’ll see that success didn’t arrive overnight, supporting the case for a longer-term view. So what of the advisers? If investors and occupiers are reinventing then it’s certainly not enough to be a silo property agent. Adding value is offering advice, which helps create sustainable destinations for property owners and supports retailers right across the supply chain. Capita Symonds Real Estate has a heritage in retail property consultancy and investment while wider Capita is known for transforming the built environment in many sectors and driving change in business efficiency. This breadth of offer makes us excited by change and the opportunities it presents. John Burnside, Director – Investment, Capita Symonds Real Estate Courage to adapt in a changing world Stephen Hawking once said,“Intelligence is the ability to adapt to change”.Well, the world is buzzing with change, but what are we doing about it? The retail and property sector is rolling out new ideas and initiatives on a daily basis, and I am proud to say many of them are Innesco’s clients. Look outside and you’ll see all the signs; those managing uncertainty with the banks, reassessing their retail property assets, rewriting business and marketing plans, using architecture and design to invigorate shopping places, adjusting tenant mixes, enhancing customer experience, and utilising new technology to increase revenues and reach customers better. Market forces have always been at play across the sector,from gold medal winning centres down to the struggling Portas towns. What will divide the winners from the ‘not so successful’ will be the speed retailers and landlords respond to anticipated changes in the wider marketplace – the global marketplace. This is a universal truth, whether you’re in Perth or Paris,Stratford or Stockholm,São Paulo or Shepherd’s Bush.Fortune favours the brave,and while not everyone is doing well,what’s clear is that those with the courage to communicate their own brand of change will leave the traditional and conventional thinkers trailing in their wake – and they know who they are. In the coming week there are two important conventions for this sector – the BCSC’s Annual Conference in Liverpool, and the ICSC’s World Summit in Shanghai. High on people’s list of discussion points will be the conviction to adapt in a changing world – harnessing inexorable changes in consumer behaviour, to successfully capitalising on once-in-a-lifetime opportunities such as the Olympic Games. When we look back on 2012 this Christmas,‘innovate’ and‘adapt’ will have been the watchwords of 2012. Dan Innes, Managing Director, Innesco A word from our sponsors
  • 6. 6 RWP | September 2012 | H ow do you spot a tipping point? When something unusual becomes everyday, or when a service or facility becomes expected? In most cases it is a quiet crossover point, and the UK’s shopping centres seem to be going over one such threshold right now, as they increasingly embrace technology, and wi-fi in particular. Land Securities got the ball rolling when it revealed earlier this year that it would install free wi-fi and a price comparison programme in all its 22 centres. The owner of such big shopping centres as St David’s in Cardiff and Cabot Circus in Bristol made the at one time controversial move to create a “seamless experience for customers”. The company said at the time: “We have got to get over ourselves and realise the internet isn’t going to be the end of the property industry.The two can co-exist.” Initially launched at the White Rose Shopping Centre in Leeds, the scheme was rolled out with Sky subsidiary The Cloud and was supported by retailers including Debenhams, Topshop, Warehouse and Oasis. Land Securities is at the forefront of technolog- ical innovation and was the first UK mall owner to install Amazon collection lockers in some of its shopping centres. The lockers enable customers to pick up orders from deposit box-style units. The first installation was at One New Change in the City of London. British Land, meanwhile, launched a delivery collection point at Meadow- hall earlier this year in partnership with Collect+. It enables online shoppers to pick up merchan- dise or return goods. However,free wi-fi remains a contentious topic among retail professionals, who divide into two camps: those who believe it encourages non-store purchasing and those who feel that its incursion is inevitable and might as well be embraced. Many of the latest developments have come about because of the rise of the ‘showrooming’ phenomenon. First noted in the US by retailers such as electricals giant Best Buy, the term describes a consumer who comes into a store to check out products and prices, then uses their mobile device to price compare and make a purchase online. It caused such concern that Best Buy initially created barcodes that could not be scanned by mobile devices. Retailers have since abandoned such techniques for more fundamental rivalry – such as Dixons’ decision to pare down costs and start to compete more aggressively on price with pure-plays. Cyriac Roeding, co-founder and chief execu- tive of Shopkick, a US-based loyalty app, believes mall owners need to deliver footfall to persuade retailers of the virtues of a store presence.His own business provides a loyalty system that awards points to consumers coming to a mall, then a specific store, plus further points for purchases and spending above certain basket thresholds. A fine romanceShopping centres and technology at first seemed like adversaries, then uneasy bedfellows, but now they are positively united – or at least they should be. Mark Faithfull reports We see wi-fi and emergent technology as a direct complement, not as a threat to the offer at our centres Ben Tolhurst, Hermes Real Estate Describing showrooming as “scary as hell”, he nonetheless insists that shopping centres must open up to technology, stressing that “the only successful walled garden right now is Apple”. UK retailers seem to have welcomed the introduction of technology into malls, believing it provides them with more flexibility. Debenhams head of international business development John Scott says bringing wi-fi and technology into malls gives the retailer more flexibility over its formats and the store size it requires, with its own wi-fi helping store staff drive sales across channels. John Lewis managing director Andy Street, meanwhile, highlights the benefits of click-and- collect and online in supporting the retailer’s smaller format store developments in Exeter and York.“If we can develop smaller stores they make less financial demand on new developments [because of the concessions department stores achieve],which means it is more financially viable to develop smaller schemes more appropriate to their location,”he points out. At the Centre of RetailAt the Centre of Retail
  • 7. 0 76950 45047 For fresh thinking in retail visit: | September 2012 | RWP 7 The real thing When Hermes’s The Centre:MK in Milton Keynes decided to focus on technology to enhance the shopper experience and drive footfall, it started with the advantage that the whole city has free wi-fi, which its shoppers can tap into. The scheme’s major focus of investment on technology has been to create points for 28 42-inch screens around the centre, which carry a combination of information, wayfinding and advertising, plus local area information. The Centre:MK head of marketing and communications Melanie Beck says customer satisfaction, especially with finding routes around the centre, immediately improved. “We integrated the screens with our Bliss loyalty programme, so shoppers can use their mobile technology to print off promotions within the mall,” she explains. “This gives shoppers another reason to come and because of the amount of marketing activity going digital, we have also saved significantly on marketing print costs.” One particularly ambitious campaign launches this autumn when the centre rolls out its first augmented reality project. Visitors will be able to search for and download via their mobile phones virtual ‘balloons’ around the centre, which will reward them with escalating offers and prizes. The virtual balloons will be located at different parts of the centre on different days, encouraging exploration and loyalty. Based on the results, a new initiative will be rolled out in the run-up to Christmas. A real hot air balloon will also tie into the theme, as the centre combines the real and digital worlds. “We believe it is something genuinely ground- breaking and will bring together the physical shopping world, visitor numbers, traffic to our website and mobile app and create a sense of event,” stresses Beck. The wi-fi gives us an opportu- nity to partner with retailers to showcase promotions Ailsa Davidson, Wereldhave Shopping centre owners are keen to stress that technology enhances the retail offers. “We see wi-fiandemergenttechnologyasadirectcomple- ment, not as a threat to the offer at our centres,” says Ben Tolhurst, asset manager at Hermes Real Estate, who is in charge of destinations including The Centre:MK in Milton Keynes, The Friary Centre in Guildford and Royal Victoria Place in Tunbridge Wells. “Given that technology is now such a fundamental part of the world of the modern shopper this ought to be considered as a basic part of a shopping centre’s offer.” Tolhurst believes that the relevance of initia- tives that employ new technology is dependent on catchment and shopper profile. “So if your customers want it, providing wi-fi access, Shopping centres are introducing initiatives such as digital screens (top), free wi-fi (middle) and infopods (left) In association with: 0 76950 45047 For fresh thinking in retail visit:
  • 8. 8 RWP | September 2012 | The Balanced Approach to Retail. See page 11. 0092 C&R RW Strip 2012 28/08/2012 11:12 Page 1 using Facebook ‘check in’ technology and devel- oping shopping centre apps for example should be fully embraced and incorporated within a wider asset management strategy.” The Centre:MK has introduced a series of initiatives based around the use of digital screens and access to wi-fi, and an ambitious augmented reality project [see box]. All the more reason Wereldhave shopping centre asset manager Ailsa Davidsonisoverseeingtheinstallationoffreewi-fi at the investment company’s shopping centre in Ealing Broadway.It went live in mid-August,after an initial trial at the Dolphin shopping centre in Poole. In the first month 231 visitors used wi-fi and there was a 40% rise in smartphone usage on the website. “We have to retain the differentiation between lifestyle shopping and internet shopping, which technology allows us to do,”says Davidson.“Wi-fi gives us an opportunity to partner with retailers to showcase promotions and special offers.” Davidson says technology should “provide extra reasons for people to come to a mall” and likes the sense of event that the right types of digital technology can add. “It’s bringing the practicality of the Amazon lockers or the theatre of a QR shopping wall,” she says. “We’re looking to partner with more brands and we’d love to have a shopping wall in one of our centres.” Another property group opting for free wi-fi is Hammerson. Retail portfolio director Martin Plocica says:“Through our multichannel strategy we are focused on ensuring our digital presence matches the quality of our physical space.” Thatstrategyincludesmobile-enabledwebsites rolled out across the portfolio and single sites that integrate with social media and other platforms such as Google Product Search. Plocica says mobile technology will become Tapping into the social shopper The next generation of ‘social shopper’ is expected to emerge by 2021, when 41% of the UK’s consumer population will be influenced by or using social media to make a purchase, according to research from bank Barclays. Among 25-to-34- year-olds, this figure is higher still with 45% of this age group already engaging in ‘s-commerce’ and by 2021 the figure is predicted to have risen to 73% of the demographic. Richard Lowe, head of retail and wholesale at Barclays, says: “When someone you know and trust makes a recommendation it’s extremely powerful and we’ve seen that the social shopper isn’t afraid to express online how much they want, love or dislike a product or service.” Barclays expects that in the UK ‘influenced sales’ will more than double from £1.4bn now to £3.3bn in 2017. Earlier this year retailers including House of Fraser, Tesco and Primark announced that they had teamed up with American Express and Foursquare to offer customers location-based deals. The service allows customers to collect savings when they ‘check in’ to foursquare when they are in particular shops – once their location is logged on their mobile device, the savings are automatically credited to their American Express card account. American Express said the deal will drive footfall for retailers, and increase engagement and loyalty among customers, and all three retailers are running promotions that allow customers who spend £10 or more to get money back. Other participants include restaurants such as Pizza Express and Strada. It must only be a matter of time before malls offer general click-and-collect points Mark Bourgeois, Capital & Regional increasingly important for landlords to engage with customers to drive sales conversion. “We are already trialling location-based promotional tools in two of our centres, which are deliv- ering encouraging early results, and our entire shopping centre portfolio will offer free public wi-fi to all customers by the end of the year,” he says. “Consumers’ use of technology is part of their everyday lives.” He cites the first House of Fraser click-and- collect store, which opened in Aberdeen’s Union Square, as a success. “The convenience of the store pick-up for consumers in a city centre location and brand presence for the retailer has been a great combination,”he observes. House of Fraser has a second such store at Grosvenor’s Liverpool One shopping centre and other retailers have mooted the possibility of dedicated click-and-collect stores or hybrid locations. HobbyCraft chairman Simon Burke believes it is time for a different mind-set from retailers when it comes to embracing technology. While multichannel retailing through in-mall wi-fi, click-and-collect and online returns may confuse the picture of in-store sales, he believes retailers have to end their obsession with store produc- tivity.When identifying the sales route,he advises, “we’ve got to stop focusing on store profitability and focus on customer productivity”. Mark Bourgeois, managing director of shopping centres at Capital & Regional, echoes this need for a sea-change:“The merger of online and offline seems inevitable. It’s only a matter of time before malls offer general click-and-collect points, and the days of trying to repel technology are surely over.You can’t turn back the tide.” ■ Free wi-fi has been installed in the Ealing Broadway shopping centre In association with:
  • 9. London 0207 932 8000 | Glasgow 0141 225 6600 | The Balanced Approach to Retail Join us on our stand at BCSC Showcase
  • 10. 12 RWP | September 2012 | Michael Green, chief executive, BCSC This is the first year when there hasn’t been a new shopping centre opening so, at the moment, property is about making the most of the stock that’s there. It is a difficult time for retail, but that’s when the industry has to pull together. The impetus driven by Mary Portas’ work is fantastic, but if we don’t maintain that momentum, there will be short-term wins but no long-term change. Everyone needs to be more flexible and adaptable – from the public and private sector to retailers, developers and agents. They’ve all got to take on the fact that towns and cities are going to look different in future.There needs to be a mix of theatre, entertainment, leisure and residential. But how do you turn around a centre that has a 30% vacancy rate? It’s not easy when you haven’t got retailers willing to expand, and when rents generally are a bit restrictive. There has got to be help from the Government. Out of necessity, we are in an era of partner- ships. There has been some moving together of landlord and tenant, and it has to get even closer. Internet shopping is here to stay, but city centres and shopping units will be there too. As for development, people still talk about potential deals.We will see cranes going up again, but it’s a long process. It won’t happen over night. High and dry?As tenants, landlords and local authorities continue to grapple with myriad challenges still facing high street retail, Retail Week Property talks to some experts about what steps need to be taken to overcome them, and how the future of the high street might look Towns and cities are going to look different in future. There needs to be a mix of theatre, entertainment, leisure and residential Michael Green, BCSC Justin Taylor, UK chief executive, Cushman & Wakefield Retail Thechallengestheretailproperty market faces need both hard and soft measures. The Portas Pilot is more about the soft measures, but the hard measures are about whether the Government will do something more significant in terms of business rate reductions and planning policy. The problem of bank lending also remains. Small businesses need access to capital, so again it comes to central Government to facilitate bank lending. One of the biggest issues on the high street is still car parking. There needs to be extended periods of free car parking, which requires firm financial measures that create a more sustainable environment in the town centre for businesses to be successful and get shoppers back into towns. However, for many town centres, especially small or secondary town ones, retail will not be the panacea that it has been in the past. Some will need to reshape and almost go back through their natural cycle to be more of a community place where people socialise – and part of that will be residential change.
  • 11. | September 2012 | RWP 13 The Portas Pilot programme contains some good ideas that will help but it’s not really going to affect the way we see retail locations develop Jonathan De Mello, CBRE Increasingly, larger multiples have a more international outlook. If you talk to them about opening a new store in the number 70 retail location in the UK, versus one in Berlin, it’s no contest – their view has changed from a domestic to a European outlook. It’s certainly not the end of the high street as we know, but there will be some that are in terminal decline for retail and therefore their sustainability must rely on a mixture of other uses. There is no question that generally leases are getting shorter, we are seeing an increasing number of temporary lettings in some shopping centres and some of the landlords will have to be more flexible in terms of rents on the high street. Charles Maudsley, head of retail, British Land There are four key factors for success in today’s retail property market: dominance and accessibility, affordability, unit configuration and flexibility, and the overall shopping environment. In our view these factors define prime locations. It’s what the modern retail environment looks like,it’s what we look for in all our schemes and it’s where our portfolio is positioned today. Landlords need to proactively manage retail environments to improve them by overseeing the tenant mix, co-ordinating marketing, supporting independent retailers, filling vacant units, ensuring a safe and secure environment,investing in local relationships and being open to flexible lease terms. Key to this is a strong partnership between all parties – landlord, retailer, local authority, local community and consumer. Fragmented owner- ship of our high streets means there is generally little consideration given to the tenant mix and this can negatively impact on the ability to refur- bish or upgrade properties, improve the public realm, maintain adequate levels of security and effectively use collaborative marketing. The net result is that town centres and high streets lose their consumer appeal. We encourage high street stakeholders to work together more collaboratively. Shopping centres and parks can work with local independ- ents and high street retailers to support them. Initiatives can include leading on a joint rebranding and marketing of the town, creating partner- ships to tackle retail crime and anti-social behaviour, helping fund and manage public realm improve- ments, ‘buddy’ schemes advising on issues such as merchandising and contributing to training programmes. Jonathan De Mello, director of retail consultancy, CBRE This year has been tough for many retailers. In terms of job losses, volume of stores earmarked for closure and retailers exercising the option to exit a store on lease expiry, it is the worst year since 2008. We’re still seeing retailers posting like-for-like decline,except in sectors such as value and luxury. One of the key developments missing from the Government this year was a reduction in business rates. You cannot set business rate increases at a historic rate of inflation – that needs to be looked at again. Meanwhile, the Portas Pilot programme contains some good ideas that will help but it’s not really going to affect the way we see retail locations develop. For example, interna- tional retailers will always want to be in the best locations; ultimately they want to be in big, well- considered units sitting next to other brands that complement them. Landlords need to be more flexible on high street rents In association with: In addition, the second round of Portas Pilots could have been better chosen. According to our research, nine out of the 15 centres chosen were already seeing increased customer visits over the past year. In terms of shopping centres, the more proactive ones think of the bigger picture – the holistic nature of an asset is key. However, many locations in the UK are owned by different landlords, so you can’t really take that approach, unless incentives are created, maybe by local governments. Some locations around the UK will never be what they were as retail centres and I would promote general change of use to create commu- nity again in town centres. ALAMY
  • 12. 14 RWP | September 2012 | Tom Carlton, retail research analyst, Legal & General Property In essence, there is too much retail space at present in the UK. A combination of other factors, includingthedownturnintheeconomy,elements of outdated stock and a change in shopping patterns has made this even more apparent as vacancy rates remain elevated. Central London, the major cities, tourist hot spots and regional shopping centres have remained largely robust. However, some towns are now suffering from functional obsolescence and therefore need to reinvent themselves. Solutions to readdress this situation, many of which were outlined in the Portas Review, include a greater focus on a convenience offer and encouraging independent retailers, markets or other proprietors into the town centre, in order to create a unique offer and point of difference. Furthermore, the internet can be seen as a threat but it also offers certain opportuni- ties for the high street, if managed correctly. Shops play a key role for multi-format retailers, giving customers an interface and acting as a showroom. Making sure high street stock is up to date and able to meet modern retail requirements is one of the key challenges for landlords at the moment. Demand is selective and therefore it’s important to have the right stock in the right location. One effect of the downturn that can be seen as positive for existing landlords is a reduction in the number of new shopping centres being built, meaning expansionary retailers will have to look at current stock. Ben Tolhurst, director, Hermes Real Estate Investment Management The UK high street is struggling with low consumer spending and competition from the internet and out-of-town retailing, affecting large and small retailers alike. Central to responding to these challenges is an understanding of the customer experience. If a town, city or shopping centre can enliven the visitor’s experience, and provide not just a relevant retail offer, but an attractive environ- ment with leisure, catering and other facilities, visitors will be inclined to return again. The Portas Pilot scheme has correctly identi- fied this need with the emphasis on examining the shopper experience in particular locations at the outset. Competent landlords and councils should already be viewing their assets in this way by reflecting on the overall customer experi- ence, catchment research and feedback from exit surveys to establish what the key drivers are for a particular location and demographic. This understanding can be used to manage the overall offer by influencing tenant mix, shopping environment, branding and marketing. Furthermore, it is imperative to ensure multichannel modes of shopping such as click-and-collect are catered for. As the major retailers will attest to, there is a high incidence of additional spend by customers visiting a store to collect goods previously ordered online. The key is to get these customers into the store to collect the goods. The relationship between landlord and tenant is another vital component, and should be The internet can be seen as a threat but it also offers opportunities for the high street Tom Carlton, Legal & General Property based on open communication and informa- tion sharing. Quite simply, poorly performing retailers do not lead to successful retail invest- ments. However, landlords that successfully manage the asset in line with consumer demand will drive tenant performance and ultimately enhance asset value. Hannah Milne, head of retail asset management, regional portfolio, The Crown Estate The UK retail market has not been left untouched by the challenges facing the economy. Development pipelines have been hit and occupational markets have put pressure on rents due to reduced sales volumes. However, good schemes are still succeeding and that is why we have invested about £470m into prime retail outside of London in the past two years. Our strategy capitalises on strong demand for space in out-of-town schemes across the country and we expect the consolidation of successful retailers in dominant prime schemes to continue. Occupier demand is still robust – it is just about matching the right tenant with the right location. Strong asset management remains key and landlords and tenants also need to recognise that more collaborative relationships will ensure long- term rental growth and success in retail markets. Achieving the right occupier mix will promote long-term rental growth and limiting exposure to struggling tenants is vital. We believe the next few years will see a number of changes in the retail property market. There will be an increase in smaller format stores for new retailers and also a rise in etailing. And retailers realise there must be greater integration of remote retailing with physical stores and the distribution network. The winners in the retail world are those multichannel retailers that have committed to all forms of retailing. ■ Vacancy rates on the high street remain high In association with:
  • 13. MAPPINGOUT YOURFUTURE? Ifyou’rethinkingofopeningnewstoresyoushouldbe talkingtous.Wehelpsomeofthebest-knownretailers expandtheirUKpresenceandthecurrentmarketis providingsomeexceptionalpropertyopportunities. South MatthewMaynard 02074347138 CentralLondon/M25 PaulSouber 02074347102 South DanSimms 02074347106 Midlands/North/Scotland DavidFox 02074347103
  • 14. All enquiries: A Dozen ReasonsTo bring new site opportunities to us.
  • 15. | September 2012 | RWP 17In association with: Grocers are moving away from hypermarkets to focus on a more diverse portfolio that recognises the importance of ecommerce and convenience. Mark Faithfull reports Pick and mix N o one appears to be winning the space race anymore. Tesco thundered aheadwithitsexpansionprogramme, only to take a domestic performance hit,Asda and Morrisons remain geographically imbalanced despite continuing talk of growth in the Southeast and through smaller formats, and the halcyon days of the 100,000 sq ft super- tanker hypermarket appear to be over. That desire to dominate non-food in the same way as food remains, but now it is the endless store of the internet, not the lengthy aisle of the superstore, where growth is concentrated. All the big supermarket groups have conducted serious reviews of their portfolios even while there has been a surge in develop- ment activity. Development has increased by more than half since the credit crunch, according to property adviser CBRE. It calculates that the supermarket pipeline in the UK has grown by a startling 57% since September 2007 and that the amount of new space in the pipeline at the end of the first half of 2012 increased to 5.34 million sq ft. Supermarkets now account for 38% of all shops in the development pipeline, up from 25% four years ago, and 39% of space under construction. However, the growth surge is no longer affecting every grocery format in the same way. As the rise of online shopping calls into question the viability of developing additional hyper- markets, several big grocers have proclaimed that instead of 100,000 sq ft stores, they will in future develop at between 60,000 sq ft and 80,000 sq ft. Grocers have developed a twin strategy. Many are exploring a next generation of supermarkets close to urban conurbations and a heavy The main push continues to be for edge and out-of-town space because of accessibility Chris Keen, CBRE Sainsbury’s, which opened 73 c-stores in 2011, will still focus on superstores and extensions
  • 16. 18 RWP | September 2012 | In association with: considerable interest in supporting local communities and businesses.” That opportunity to acquire rather than grow organically will likely lead to consolidation. Morrisons especially has been slow to develop smaller stores, despite its ambitions. “It obviously has a national distribution network so can start to grow organically. However, we expect Morrisons to look at acqui- sitions as a way to secure market share quickly and to enable them to operate convenience more profitably,” says Keen. “It has been widely reported that [Morri- sons] is in discussions with Costcutter but there are many other opportunities. Non-affiliated independents account for a whopping 41% of the c-store market and the symbol groups [Spar, Costcutter, Musgrave etc] account for a further 31%. There is bound to be considerable consoli- dation in this sector and so the net gain of new space may not be as much as many think.” The other advantage of looking at c-store benefiting as people favour a ‘little-and-often’ approach to their food shopping that helps them budget and spread the cost. The sector is also more competitive than ever, with stronger promotions, greater choice of goods and better value for money.“ She also points out: “Nearly three-quarters of convenience stores are still independently owned, either by an unaffiliated retailer or as part of a symbol group such as Nisa or Spar. So they stand to benefit from the bias towards the high street, as well as conven- ience stores. CBRE director Chris Keen says: “The main push continues to be for edge and out-of-town space because of its accessibility. Grocers are, however, also acquiring additional high street stores, particularly in conurbations where it is more difficult to obtain planning permission for superstore developments.” On the bandwagon The big growth in convenience has been led by Tesco and Sainsbury’s, but all grocers are exploring options. Morrisons continues to promise a roll-out of its M Local format, having announced in February that it was targeting 300 openings of the c-stores by 2014, while Asda acquired the Netto estate, although those stores are larger than the typical high-street c-stores. Waitrose revealed in July that it would open an additional 20 Little Waitrose c-stores in and around London over the next 18 months. The appeal is clear: UK c-stores’ sales are forecast to reach £44bn by 2017, according to the latest research from IGD. That represents a 29% increase from the current value of £34bn. The average annual growth rate for the conven- ience sector is expected to be 5.1% between now and 2017. IGD’s research shows that shoppers are favouring a ‘little-and-often’ approach, with 49% now doing their grocery shopping three or more times a week, compared with 39% in 2009, while 72% of c-store shoppers can see themselves using such shops to pick up parcels if they are not home for a delivery. Joanne Denney-Finch, chief executive of IGD, says: “The convenience market is Exploiting a wide armoury of formats, grocers are considering where they need greater coverage. The biggest growth area is in the Southeast, according to CBRE. In 2011 Morrisons opened 15% of its space in the Southeast but in 2013/14 it has said it will be 60%. Morrisons has 10 superstores under development within the M25 and aims for 10 more in next five years. That said, Sainsbury’s says its focus is in the North, West, Scotland, Wales and Northern Ireland. The big four are also all under-represented in the Southwest. Location focus Tesco and Sainsbury’s have led the recent growth in convenience formats. UK c-stores’ sales are due to reach £44bn by 2017, according to IGD The convenience market is benefiting as people favour a ‘little-and-often’ approach Joanne Denney-Finch, IGD
  • 17. 300 new Drive-thru restaurants required... That’s food for thought! For more information and requirements list visit Stand alone restaurants with Drive-thru lane • Retail & leisure parks • Main arterial routes • Pub conversions 3,621 sq ft restaurant plus car parking or 1/2 acre sites £20,000 IntroductoryFee Tim Edwards 020 7493 4455 • 07894 531 924 ALL REGIONS ALL REGIONS Adrian Longstaff 0113 2091605 • 07808 479273 Longstaff & Associates RETAIL AND LEISURE CONSULTANTS Head of Acquisitions Mike Williams 020 8700 7191 • 07973 203 906 South East Alex Lomas 020 8700 7084 • 07802 908 384 Inside M25 Richard Marsh 020 8463 4330 • 07739 304 245 North West, Scotland & N. Ireland Emma Fisher 0161 253 4287 • 07841 497 494 West Midlands & South West Andy Ross 0121 253 3535 • 07802 885 281 North East, East Midlands & E. Anglia Paula Reed- Smith 0121 253 3445 • 07836 384 380
  • 18. 20 RWP | September 2012 | In association with: A global developer of logistics warehouses UK | Europe | China | Middle East development is that planning is generally far easier, with many stores locating in existing retail sites. Local opposition tends to be less vociferous too, although new development has not been without some challenges. Bob Robinson, managing director of consul- tancy DPP, says: “In terms of c-stores, a lot was made of the conversion of pubs to supermar- kets but really it reflects convergence of require- ments: the lack of stock available to convert and the need for pubs to dispose of properties.Again a lot has been said about the ongoing review of changes of use in respect to this but I fail to see in practice how a rule can be written to define an independent versus a chain, so applying it in practice would be very difficult.” However, not all grocers are thinking alike. Sainsbury’s has pledged to continue developing hypermarkets, while Robinson believes that even though Morrisons is keenly looking at store sites in and around the M25, it may not actually be so bullish about c-stores. Instead, Robinson feels that supermarkets in the 15,000 sq ft to 20,000 sq ft range may be where more of a push at the smaller end comes. “Urban stores with a wide offer are becoming popular again and Asda has traded well with its Netto stores,” he explains. “I would not even discount the mid-range European grocers from taking another look at the UK.” However, while the general shift may be towards smaller stores, Mark Price, managing director of Waitrose, is among those concerned that regardless of format, too much space is being developed. He said earlier this year that while over the last two years (2009 to 2011), the space dedicated to food and grocery in the UK rose by more than 13%, the increase in sales value over the same period was just 6.8%. Citing forecasts for 2011 to 2015, he believes the situation is likely to be further exacerbated. Changing goal Others feel that the race for space has already taken a different direction.“The days of retailers developing for market share are over,” says Russell Walker, associate partner and foodstore specialist at Briant Champion Long. “In the current phase of development we have seen the big grocers battling for market share, but generally that is not going to work any longer in most locations. Instead they want to build profitable sales, which means being far more selective and strategic about where and what size they build those stores. There will be less cannibalisation through expansion in future.” So, the space race is changing direction. Walker expects most of the next phase of development to be in urban areas, whether on the edge of towns or in high street c-stores, and concludes: “Although Tesco is not now as acquisitive as it was last year, this has served as encouragement to the other operators who see that competition for sites is slightly less intense than it was. Asda, Sainsbury’s and Morrisons are still very much in expansion mode.” ■ CBRE director Chris Keen shares his thoughts on how he sees expansion playing out: “Morrisons opened more space than planned in 2011 at 643,000 sq ft and intends to open 2.5 million sq ft in the next three years. Sainsbury’s opened 1.4 million sq ft in 2011 and 1.5 million sq ft in 2010. It is likely to open about 1 million sq ft a year going forward. This means it can be a bit more picky about sites and 1 million sq ft to 1.5 million sq ft is a sustainable level, given there is a physical limit to what a retailer can open each year (capital expenditure is not unlimited and even things like store recruitment and marketing have to be resourced). In 2011, Sainsbury’s opened 10 superstores averaging 39,000 sq ft, 15 extensions averaging 15,000 sq ft and 73 c-stores. It has said that it is going to open a mix of superstores, extensions and c-stores going forward and I expect a similar proportion of each. It is well documented that Tesco is going to open 38% less space this year but that is still a substantial 1.5 million sq ft of new space. It may be cutting back but that is from a one-off surge last year which was never going to be repeated, given the physical challenges of resourcing such growth. Tesco will likely cut back on rolling out its very largest stores, but not stop altogether. It is inevitable it will be more picky if there is less investment in that part of the business. There were never that many developed each year due to the challenges of planning and finding large sites and so it is not going to have quite the impact people think. Asda has said very little and it is only Sainsbury’s which is giving an indication of the split between hyper, super and c-store.” How space will be developed in future There will be less cannibalisation through expansion in future Russell Walker, Briant Champion Long Morrisons plans to open 2.5 million sq ft in the next three years
  • 19. Our flexible approach to store development means we have an Asda format to suit all locations. We have a range of store formats including: n Supermarket: Sales area of between 8,000 and 25,000 sq ft net n Superstore: Average sales area of 44,000 sq ft net n Supercentre: Average sales area of 85,000 sq ft net n ASDA Living (non-food stores): Footprint of 20,000 sq ft with full cover mezzanine. Ideally suited to retail parks. New food or non-food store opportunity? Get in touch. Investing across the UK. Our flexible approach to store development means we have an Asda format to suit all locations. We have a range of store formats including: n Supermarket: Sales area of between 8,000 and 25,000 sq ft net n Superstore: Average sales area of 44,000 sq ft net n Supercentre: Average sales area of 85,000 sq ft net n ASDA Living (non-food stores): Footprint of 20,000 sq ft with full cover mezzanine. Ideally suited to retail parks. New food or non-food store opportunity? Get in touch. Investing across the UK.
  • 20. Scotland Northern Ireland 1 3 2 4 5 12 7 6 8 10 11 9 10 13 National Acquisitions Team. We have a specialist foodstore acquisitions team working in each region of the UK. If you are interested in working with us please contact: 1 Scotland Colin Sangster 07779 700 802 Kathleen Hutchinson 07779 700 739 2 Northern Ireland Colin Sangster 07779 700 802 3 North East and Cumbria Mark Hudson 07779 700 540 4 North West John Hudson 07779 700 949 5 Yorkshire and The Humber Andy King 07779 700 191 Nigel Jones 07779 700 756 6 East Midlands Andy King 07779 700 191 7 East of England John Mutton 07779 700 173 8 West Midlands, Mid and North Wales Paul Lowe 07779 700 202 9 South West Andrew Moulden 07772 226 789 10 Hampshire, Berks, Oxfordshire, Gloucester and South Wales Jon Mills 07779 700 711 11 Hertfordshire, Buckinghamshire and South Essex Donna Sefton 07779 700 332 12 South London and Surrey Guy Price 07800 629 300 13 North London, Sussex and Kent Andrew Eldridge 07785 556 600 ASDA Living (UK) Keith Wilson 07939 235 713 Scotland Northern Ireland 1 3 2 4 5 12 7 6 8 10 11 9 10 13 Detail of London area. Scotland Northern Ireland 1 3 2 4 5 12 7 6 8 10 11 9 10 13 Scotland NorthernNorthern IrelandIreland 1 3 2 4 5 12 7 6 8 110 11 9 110 13 National Acquisitions Team. We have a specialist foodstore acquisitions team working in each region of the UK. If you are interested in working with us please contact: 1 Scotland Colin Sangster 07779 700 802 Kathleen Hutchinson 07779 700 739 2 Northern Ireland Colin Sangster 07779 700 802 3 North East and Cumbria Mark Hudson 07779 700 540 4 North West John Hudson 07779 700 949 5 Yorkshire and The Humber Andy King 07779 700 191 Nigel Jones 07779 700 756 6 East Midlands Andy King 07779 700 191 7 East of England John Mutton 07779 700 173 8 West Midlands, Mid and North Wales Paul Lowe 07779 700 202 9 South West Andrew Moulden 07772 226 789 10 Hampshire, Berks, Oxfordshire, Gloucester and South Wales Jon Mills 07779 700 711 11 Hertfordshire, Buckinghamshire and South Essex Donna Sefton 07779 700 332 12 South London and Surrey Guy Price 07800 629 300 13 North London, Sussex and Kent Andrew Eldridge 07785 556 600 ASDA Living (UK) Keith Wilson 07939 235 713 Scotland Northern Ireland 1 3 2 4 5 12 7 6 8 10 11 9 10 13 Detail of London area.
  • 21. ST ALBANS BRISTOL BATH BIRMINGHAM CANTERBURY CAMBRIDGE SALSIBURY SOUTHAMPTON BASINGSTOKE READING MILTON KEYNES PORTSMOUTH OXFORD BRIGHTON GLOUCESTER WORCESTER HEREFORD Martin Supple 0207 152 5898 Toby Comerford 0207 152 5063 Tony Edwards 0207 152 5038 Contacts For inside the M25 For outside the M25 contact Cushman & Wakefield and for Inside the M25 contact Savills Dan Kent 0207 409 8161 Ben Tyack 0207 409 8084 Gary Darrell 0207 409 8083 Priority Locations • Neighbourhood and local centres, busy urban high streets with good residential catchments. 10 -15 dedicated car spaces • City or town centres with high footfall, busy shopping or working locations or close to transport links Site requirements • 3,000 sq ft - 6,000 sq ft gross ground floor (Net sales area 2,000 sq ft - 4,000 sq ft) • Leasehold or Freehold Property Types • Existing buildings to be refurbished • Pub conversions • New mixed use developments • Redevelopment opportunities • Petrol filling stations • Retail warehouse units Fees Introductory fees paid to non retained agents For outside the M25 Contacts FRESH REQUIREMENT for new convenience stores
  • 22. | September 2012 | RWP 25 Retailers are increasingly exploring international expansion, but securing the right property portfolio abroad brings unique challenges. Gina Lovett reports on developments in key global markets On fertile ground T he prolonged stagnation of the UK retail market has meant that overseas expansion is now an ever more important part of many retailers’ growth strategies. Thepropertychallengesfacingretailerslooking to expand abroad are many and varied however. Retailers are exploring emerging markets as far-flung as Brazil and Kazakhstan, and inter- national expansion ambitions are often high. In August for instance,Boots revealed it would more than double its store estate in Thailand over the next three years, totalling more than 300 shops. But while emerging markets are on the agenda for many, more well-trodden regions are also offering fresh opportunities as their property mix evolves. Over the past six months, fashion brands have turned their gaze towards North America with Ted Baker, for instance, recently revealing plans to open its third store in Manhattan’s Fifth Avenue, despite the perceived maturity of the market. Closer to home, recent figures from the Global Retail Forum have highlighted Zurich as a retail oasis in the stagnant Eurozone. One country that has long been at the forefront of retailers’ expansion strategies is the United Arab Emirates. And while it is often the first destination for European retailers when expanding outside their home market, one of the world’s most extravagant retail scenes is shifting from the glittering mega mall to smaller, commu- nity-based developments. Having reached saturation point with the international tourist contingent in high-end destination malls, such as The Dubai Mall or the Mall of the Emirates, retailers are now looking to the local Emirati market for growth. Long underserved by retail development, local communities are demanding shopping facilities closer to home. And as focus shifts, the region has ushered in a new wave of value and family- oriented retailers such as Poundstretcher and M&Co in the past six months. Matthew Green, head of research and consul- tancy at CBRE, says people will go to the larger malls on the weekend for leisure and It’s about having the right place for the right type of audience Matthew Green, CBRE Debenhams is now considering smaller stores in the UAE In association with: According to research from CBRE, Chinese cities will continue to dominate global development activity: ■ Eight out of the top 10 most active markets globally are in China. ■ Tianjin heads the list with 25.8 million sq ft currently under construction, followed by Shenyang and Chengdu. ■ Outside China the most active development markets are Abu Dhabi, Hanoi, St Petersburg, New Delhi and Kuala Lumpur (Klang Valley). Source: CBRE, How Global is the Business of Retail? 2012 China – development domination
  • 23. 26 RWP | September 2012 | shopping, but don’t want to stray too far from home for more basic items. He says: “It’s about having the right place for the right type of audience. Within master-planning now, there’s a trend towards installing community-type devel- opments with a focus on service-related brands.” The Arabian Center in Mirdiff, Dubai, for example, attracts shoppers who live in a 12km radius. The centre’s audience is 65% Emiratis and it has widened its domestic retail offering to 15% to 20% of the total offering. Regional hypermarket LuLu anchors the scheme, which includes UK retailers Matalan, Mothercare and New Look, and across Dubai key developers including Nakheel Properties and Emaar Properties have now inked deals to build such malls. George at Asda George at Asda, which teamed up with franchise operator Azadea Group in January, is among the UKretailersexploringthepotentialof community malls. Kevin Rusling, George at Asda’s director of international, says they will be integral in driving sales growth in the region in next three to five years. “There’s only so much that the high-end destination malls can offer. Retail has lacked in family oriented offerings for local Emirati communities,” he says. “Community malls, with supermarkets as an anchor, are a much truer picture of a traditional UK high street.” Considerations in taking up space in a community mall are primarily around dress code and modesty. “This impacts things like window schemes and product mix – we don’t have to dramatically alter them – but you do have to carefully consider these things,”he explains. Scottish value retailer M&Co, which opened its first Dubai store in The Dubai Mall in May and is due to open a second in the Dubai Marina Mall, aims to operate in both high-end destina- tions and community malls through its franchise partner Liwa Trading. About four of the 13 stores it has planned in the UAE over the next five years are scheduled for community malls. According to Lee Braid, M&Co international franchise manager, such a strategy targets “a more balanced mix of local customers,expats and ABOVE Eight out of the top 10 most active markets globally are in China RIGHT Holland & Barrett plans to open 322 more stores in China by 2016 transient tourists”and diversifies the retail base in a“challenging”trading climate. Debenhams too, one of the first UK retailers to enter the UAE 16 years ago targeting high-end destination malls, is now also looking at smaller store formats catering for local audiences to boost future growth. The department store group, with franchise group Alshaya,will open a 37,000 sq ft store in the Dalma Mall next year. According to John Scott, head of business development for international at Debenhams, a strong customer base in smaller urban and suburban areas doesn’t always support a full department store format.“With a smaller format we can extend our reach with a capsule version of our store, targeted to local customer dynamics,”he says. Another country that has become a key focus for many retailers is China. With liberal planning catalysing rapid development, and a system allowing international retailers full ownership, global retailers have flocked to metropolises such as Shanghai, Beijing and Hong Kong. Now that these are reaching saturation point, further-flung ‘second-tier’ cities such as Chong- qing, Tianjin, Shenyang and Chengdu, with populations of three to 15 million and a nascent middle class, are being primed for development. According to property consultancy CBRE, such Chinese cities will continue to dominate development activity. Tianjin heads the list with 25.8 million sq ft currently under construction, followed by Shenyang and Chengdu. Louis Vuitton has already opened stores in Urumqi, Kunming and Zhengzhou, while Ikea has outlets in Tianjin and Wuxi. Swedish clothing retailerH&Mhad64storesacrossmainlandChina in locations as diverse as Chengdu, Changsha and Harbin at the beginning of this year. While opportunity for growth in second-tier cities looks abundant, property and retail experts are sounding a note of caution. As Chinese retailers adapt,domestic competition is becoming fiercer. And while the line of retail developments brings ample choice, it also leads to a greater number of unsuccessful schemes. According to James Hawkey, executive director of retail services China for Cushman & Wakefield, the most concerning trend is that a wide range of local developers are going into retail for the first time, building shopping centres of massive proportions. China’s planning system, which allows land to be auctioned by the Planning Bureau in each city, and developers to decide for themselves the In association with: There’s only so much that the high-end destination malls can offer Kevin Rusling, George at Asda
  • 24. 28 RWP | September 2012 | commercial use, means rapid growth. Retailers, though, have to work harder to seek out projects with“strong fundamentals”, adds Hawkey. Franchise favoured Although international retailers can fully own as many retail sites as they want in China, the capital requirements for each location, the time and care needed to select the right development and bureaucratic challenges are prompting global retailers to consider franchise or hybrid models. In the case of a hybrid model, the retailer will own sites in the country’s key cities, with further expansion spearheaded by a franchise partner. Holland & Barrett, which opened its first two stores at the Hongyi Plaza in Shanghai, is one such retailer working with a franchise partner. It plans to open 322 stores by the end of 2016 with Chinese appliance manufacturer Changzhou Globe Company. According to Mark Stewart-Maunder, global franchise manager at Holland & Barrett owner NBTY Europe, so many new malls being built means “lots of choice” but also lots of unsuccessful projects. “We need to be very cautious when choosing retail space in mainland China,”he notes. Changzhou, he says, has “the necessary level of government contacts required to succeed in China and the necessary capital resources”. “The pace of change in China means we will need to adapt quickly to the changing space available as many parts of the market are yet to be developed. Our franchisee has a forecast capital requirement of £50m over the five-year launch plan,”he adds. Despite a shift in focus towards Chinese second-tier cities, as the gateway to China, Hong Kong’s popularity among global retailers continues to soar. According to Cushman & Wakefield, it attracted $6bn (£3.8bn) of global investment last year – six times that of Moscow. Its favour as a place to study buying habits before taking on the bureaucratic challenges across the mainland, has helped push rents in prime spots to an all-time record high, however. The average annual rent along Hong Kong’s Queen’s Road Central soared to HK$1,831 (£150) per sq ft in March, up 35% from a year earlier, according to real estate brokerage Colliers International. While some retailers are still willing to pay, others are weighing up alternatives. H&M, for example, decided in July to vacate its 30,000 sq ft flagship in the Central district after five years. In Causeway Bay, Leighton Road is emerging as an alternative to the district’s Kai Chiu Road. In February, G-Star opened its largest store to date there – at 7,319 sq ft, it is twice the size of its Tokyo, Los Angeles and Sydney flagships. An influx of mainland tourists “popping over the border” for better-quality pharmaceuticals, watches, jewellery and cosmetics has also helped to create a new “convenience” market, served by retail sites in malls near the border, says Simon Smith, senior director of research and consultancy at property group Savills Asia Pacific. Last year 28 million mainland tourists visited Hong Kong, and one such site is the New Town Plaza in Shatin. So, despite a marked shift in property priori- ties in regions such as China and the Middle East, retailers are still finding plenty of reasons to invest there. But keeping abreast of changing opportunities and consumer demand, and choosing partnerships wisely, is crucial in getting the store estate mix right overseas, no matter which territory retailers train their sights on. ■ The average annual rent along Hong Kong’s Queen’s Road Central rose to HK$1,831 (£150) per sq ft in March, up 35% from the previous year, driving some retailers to focus on alternatives. Leighton Road Rents in the area come in at about HK$100 to HK$150 (£8 to £12) per sq ft and are attracting “modern luxury” and young fashion retailers such as G-Star and Jack Wills. Wellington Street According to Simon Smith, senior director research and consultancy at property group Savills Asia Pacific, Wellington Street is emerging as an alternative to Queen’s Road Central. Rents here are about HK$200 to HK$350 per sq ft, and the area has attracted retailers including CK Jeans and Y-3. New Town Plaza, Shatin This shopping mall is becoming a destination for international brands including Burberry, Coach, Club Monaco, Zara and H&M. Rents are between HK$100 and HK$700 per sq ft, depending on the size, while leases are between two to six years. Thomson Cheng, managing director of franchise and retail group ImagineX, which has opened stores for Club Monaco, Apivita, Juicy Couture (above) and Aveda at New Town Plaza, says such stores are benefiting from increasing “domestic” traffic and mainland shoppers. Landmark North, Sheung Shui Popular with beauty retailers including The Body Shop, Skin Food and SK-II, this centre is being repositioned for one-day travellers interested in convenience products, electronics, watches and jewellery. Rents here are about HK$150 to HK$250 per sq ft per month or 12% to 16% of a retailer’s monthly turnover, whichever is the higher. Leases are between two and three years. Harbour City, Tsim Sha Tsui With the highest concentration of consumers from mainland China of any mall in Hong Kong, the shopping centre allows retailers to capture both the domestic and the travelling consumer in Causeway Bay. Hong Kong property – focus shift The pace of change in China means we will need to adapt quickly to the space available Mark Stewart-Maunder, Holland & Barrett In association with:
  • 25. BRITAIN’S NEW PORT OPENING Q4 2013 9.25 million sq ft available on 560 acre logistics park • Located in the UK’s largest consumer market • Integrated with Britain’s new hub port • Exceptional sea, road and rail connectivity • Increased speed to market at reduced cost • Plots ready for build to suit development Don’t miss out optimising your global supply chain, speak to us today… Re-draw your global supply chain map... Tim Johnson 0207 087 5300 Richard Evans 0207 399 5223 Chris Knight 0207 399 5402 Jeremy Cracknell 01375 648305 Peter Mitchell 01375 648357 Peter Ward 01375 648342 020 7493 4933
  • 26. UK | Europe | China | Middle East DELIVERY EXPERTISE CUSTOMER SERVICE PARTNERSHIP SUSTAINABILITY Our teams are some of the most experienced and technically proficient in the world Our customers can expect exceptional service and standards, irrespective of location We are trusted by some of the world’s leading brands and organisations to deliver the right product, in the right place, at the right time We follow our customers around the globe to provide flexible, cost-effective and sustainable logistics solutions We always deliver on the promises we make, as over 100 customers will testify
  • 27. | September 2012 | RWP 31In association with: It’s all go in the distribution centre property market, where dedicated and hybrid logistics models are altering the requirements of retailers, and internet fulfilment is rewriting the rules. Mark Faithfull reports W hile some plot national retail domination through swanky flagships and iconic statement architecture, others have a less high-profile view of how retailing nirvana might be accomplished in the UK. From Tesco’s futuristic collection of distribu- tion hubs around the M25 – known as‘dark stores’ – to the London Gateway project, a different type of retail future is being mapped. While the race for retail space might be shifting, the requirements for distribution centre locations are also developing apace. When Tesco opened its 115,000 sq ft online delivery facility in Enfield, north London last year, it was its fourth such dark store, created to meet online order demand in densely populated areas. The £30m Enfield premises provides the highest level of automation yet, with conveyor belts dispatching trays to pickers with hand-held devices strapped to their arms to fulfil orders from 178 stations. Bryan Lewis, senior asset manager at British Land, says: “What we are seeing is store portfolios being positioned to cope with the changing nature of sales.” Online giant Amazon has also adopted a strategy to get closer to its shoppers and opened a 700,000 sq ft fulfilment centre in Rugeley, Staffordshire and a 1 million sq ft site in Dunfermline in 2011, as the latest in a proposed 20-centre network. Expansion has been slowed by planning restric- tions but the growth ties in with Amazon Europe Marketplaces, which opened last year, enabling sellers to list products across all its European websites with one account. It improved its ‘Fulfil- ment by Amazon’ service by allowing those products to be stored in a fulfilment centre in one country and distributed across Europe. “Retailers are directly commissioning warehouse space in locations to suit their networks,” says Helen Bunch, managing director of Wates Retail. “This is a growing trend as retailers look to reduce expenditure on freight and speed up delivery times.” While ecommerce businesses have different location priorities to more traditional retailers, there are variations in demand within the ecommerce sector depending on the nature of the online business. Grocery distribution centres, for example, are usually located close to the populations they serve.However,consumer goods retailers,without the same constraints, tend to operate from large national distribution centres. Although these operators have to consider delivery costs, they have more flexibility. “Retailers dealing directly with the public through ecommerce are looking for large distri- bution buildings over 500,000 sq ft,” says Andrew Griffiths, managing director of Prologis UK, a distribution buildings provider. “There are very few buildings of this size currently available, but the main considerations for ecommerce We are seeing store portfolios being positioned to cope with the changing nature of sales Bryan Lewis, British Land Change of space InvestIng In the bestProviding for the long‑term future of our Global customers. UK | europe | China | Middle east
  • 28. 32 RWP | September 2012 | In association with: TRUSTEDby some of the world’s leading retailers for 25 years. UK | Europe | China | Middle East occupiers are cost and labour availability and they will look at non-traditional distribution locations if necessary.Asos,for example,has taken a 530,000 sq ft cross-docked warehouse [in Barnsley].” He says: “For the pure etailer, they need large buildings because they have no other stock holding capacity and they need these facilities to function as efficiently as possible. They tend to require a higher loading dock ratio and cross The main considerations for ecommerce occupiers are cost and labour availability Andrew Griffiths, Prologis UK London Gateway and the age of the train If sheds are enjoying a retail renaissance, then so too is rail distribution as the choice for product movement. Rail-connected buildings with multi- modal facilities are available in a limited number of locations, such as the Daventry International Rail Freight Terminal (DIRFT) in the East Midlands. Tesco, which has taken an 840,000 sq ft rail- connected warehouse at DIRFT, estimates that, when fully operational, the facility will handle up to eight trains a day, taking almost 100,000 lorry journeys off the road annually. Recently, logistics space developer Gazeley was given the go-ahead for its first rail-connected UK mega-shed along with Harworth Estates for an 850,000 sq ft rail-connected shed at G Park Ashby- de-la-Zouch, Leicestershire. The site was previously used for the distribution of coal from local surface mines and is in a prime East Midlands location. But the potential catalyst for greater change is DP World’s £1.5bn London Gateway development, which involves a new port built in the Thames using reclaimed land. The port, which is scheduled to open in the final quarter of 2013, will become one of the world’s most advanced deep-water container ports allowing the biggest ships to import directly to the UK, instead of via rival European cities. Alongside the port there is planning consent for one of the UK’s largest logistics parks, which will include 9.3 million sq ft of rail-connected sheds, and Britain’s largest privately owned freight and logistics company, Uniserve, is in advanced talks to take a 1 million sq ft shed. Marks & Spencer is also considering a 1 million sq ft shed at the site, while Tesco has looked at the location for a potential rail-connected mega-shed. But the park is not only about large occupiers, several multi-let sheds of up to 500,000 sq ft are to be located there as well. distribution operations into fewer, larger regional hubs to increase efficiency. Marks & Spencer, for example, has taken a 1.1 million sq ft distribution centre at Prologis Park Bradford to service its stores in the North. It seems that, while there is plenty of supply, much of it is not what retailers are looking for or is it in the right location. Andrew Schofield, director of research, property at Henderson Global Inves- tors, says: “E-fulfilment is increasing the demand for edge-of-town sites, while proximity to the stores’ portfolios remains more important for national distribution centres. We’re also seeing distribution become more port-centric.” Schofield believes that after 12 months dominated by food retail demand, the advent of more bespoke sheds and greater investment in the picking and sorting technology within them will mean the landscape changes over the next few years, especially as some premises can be picked up at a very low per sq ft rate.“Non-food retailers have been relatively quiet when it comes to the mega-sheds but there are signs that this is changing,” he says. “There is no doubt that logis- tics is becoming more and more important.” ■ Rail distribution is becoming a favoured choice Requirements for distribution centre space are changing LEFT The proposed London Gateway port will house one of the UK’s largest logistics parks docks because parcels are smaller and the volume of reverse logistics is high.” Retailers are also starting to consider delivering goods directly to the customer rather than through Royal Mail and are, therefore, looking for parcel hubs between 50,000 sq ft to 100,000 sq ft located close to urban centres, usually highly bespoke with doors on all four sides. In contrast, retailers are consolidating their GETTY
  • 29. M6 M5 M1 A1 M1 M40 M25 1 3 2 5 4 6 9 8 10 11 1213 14 1516 17 18 7 Current UK Portfolio: Gazeley, a global developer of logistics warehouses For the latest portfolio news search online at The North 1 G.Park Skelmersdale UP TO 738,000 ft2 68,563 m2 2 G.Park Liverpool UP TO 450,000 ft2 41,806 m2 3 G.Park Doncaster UP TO 1.5m ft2 139,355 m2 4 G.Park Newark UP TO 768,000 ft2 71,410 m2 5 G.Park Stoke UP TO 462,000 ft2 42,921 m2 The Midlands 6 G.Park Ashby-de-la-Zouch UP TO 850,000 ft2 78,967 m2 7 G.Park Blue Planet TO LET 383,000 ft2 35,595 m2 8 G.Park Tamworth UP TO 83,000 ft2 7,711 m2 9 Plot 2110 Magna Park Lutterworth UP TO 104,000 ft2 9,662 m2 10 G. Park Crick UP TO 1.1m ft2 102,193 m2 The South 11 G.Park Bedford UP TO 260,000 ft2 24,155 m2 12 G.Park Biggleswade UP TO 538,000 ft2 49,982 m2 13 Magna Park Milton Keynes UP TO 4.4m ft2 409,000 m2 14 G.Park Enfield UP TO 120,000 ft2 11,148 m2 15 G.Park Sittingbourne UP TO 779,000 ft2 72,370 m2 16 G.Park Newbury UP TO 145,000 ft2 13,470 m2 17 G.Park Swindon UP TO 572,644 ft2 53,200 m2 18 G.Park Western Approach, Bristol UP TO 349,000 ft2 32,423 m2 UK | Europe | China | Middle East
  • 30. Richard Sullivan Robert Cleeves Charles Binks Russell Crofts Misrepresentation Act 1967: The particulars are not to be considered a formal offer; they are for information only and give a general idea of the property. They are not to be taken as forming part of a resulting contract nor be relied upon as statements or representations of fact. Whilst every care is taken in their preparation no liability can be accepted for their accuracy. Intending purchasers must satisfy themselves by personal inspection or otherwise as to the correctness of these particulars which are issued on the understanding that all negotiations are conducted through, Savills and Knight Frank. May 2012. CROSS FLOW WAREHOUSE/DISTRIBUTION FACILITY CABOT PARK BRISTOL NEW CROSS-DOCKED 549,626 SQ FT (51,062 SQ M) CROSSFLOW550.CO.UK The only cross-docked warehouse facility of over half a million sq ft in the South of England available now. SUB DIVISION OPTIONS AVAILABLE • CROSFLOW550 is immediately available and depending upon your specific requirements, could be fully operational within 3 months. • Zero CapEx - The Landlord, GE Capital Real Estate is offering very attractive incentive packages tailored to meet your business needs. • GE Capital Real Estate has a team of experts on hand to guide you through all aspects of the fit-out process, at no cost to you. For more information: A CHOICE MADEEASY Modern Distr TO LET www.royalbow Modern D TO LE www.roya
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  • 33. | September 2012 | RWP 37 View the digital edition online at RetailWeek PROPERTY A new generation of shopping centre is emerging, with food and leisure at its heart. But while the extra footfall this brings is always welcome, Ben Cooper asks if it is all good news for retailers? At your leisure D ance schools, roller discos and craft fairs aren’t the first things that come to mind when you picture the typical shopping centre experience. But the retail property development game has changed. Initiatives like these, at Bluewater’s new experiential events venue, are a sign of the lengths developers are going to now to attract and retain consumers. “For the industry as a whole, there has to be a far greater awareness that shopping and leisure are fundamentally linked,”says Nigel Gillingham, directoratretailagencyBruceGillinghamPollard. “The bad old days of developers appearing to be tacking on a leisure offer in locations where they can’t let shops, and sometimes more of an after- thought, have to be consigned to history.” Necessity is the mother of invention, and it’s the new threats to shopping centres and retail parks that have bred the latest trends. The internet has cut out the need for people to even leave their homes to shop. Combined with the poor consumer spend of the last few years, retailers are revising their property acquisition programmes accordingly. But people do still like to shop, and socialise. Even if they don’t plan to splash out as much as they would have four years ago. “Despite its popularity, the internet is not a leisure experience,” says Tesco head of leasing and investment management Jane McFarland. “People still enjoy spending quality time relaxing with friends and enjoying the little free time they have to socialise. “We expect developers to be increasingly focusedoncreatinganenvironmentthatsupports and facilitates this consumer need and to recog- nise that a strong leisure offer is key to this.” So what can be done to make developers’ centres – and retailers’ stores – the place to be? Matthew Allen, principal of investment and asset management company Addington Capital, which is about to carry out a major cinema and leisure-driven refurbishment of the Harvey Centre in Harlow, explains how important a move like this is, especially in the less heavily populated areas. He says: “A sub-regional town centre without a strong leisure or heritage offer will have shorter trading hours and most likely appeal to a narrower socio-economic consumer group. “The key anchor is a cinema because national casual dining restaurants need evening trade to be viable which, in turn, needs adjacency to a multiplex cinema. “On the back of a cinema and restaurant cluster there is potential to build related There has to be a far greater awareness that shopping and leisure are fundamentally linked Nigel Gillingham, Bruce Gillingham Pollard The Wavehouse, shown here, at the Gateway shopping mall in Durban, South Africa could open in the UK In association with:
  • 34. 38 RWP | September 2012 | View the digital edition online at RetailWeek PROPERTY Westfield Stratford City Westfield has pushed the boundaries with its latest UK centre at Stratford City on the site of London’s Olympic Games. As well as a host of restaurants, cafes and a 17-screen Vue cinema, it has some interesting additions in the food and leisure offer. They are: ■ All Star Lanes Westfield is the first shopping centre site for the luxury bowling and dining operator, which opened its largest venue to date there, finding an ideal home for its food and leisure combination at Stratford City. ■ Aspers Casino Billed as the UK’s first ‘super- casino’, Aspers (pictured) is on the third floor at Westfield Stratford City is open 24 hours a day. ■ Great Eastern Market A homage to a market of the same name that operated nearby some 100 years ago, the Great Eastern Market provides space for a cluster of food delis, luxury food and coffee operators in a quirky setting in the centre. leisureusessuchasbowling,swimming,climbing and extreme sports.” In 2008, two big schemes opened in the UK, Liverpool One and Westfield London, and both had cinemas as their anchors. The benefits of having a popular non-retail offering in schemes are huge. The continued strength of leisure means that empty units are being taken over by, in particular, food providers. This means that schemes are generally healthier and better equipped to prevent shopper leakage. Tracey Mills, director of development leasing at leisure property consultancy Davis Coffer Lyons, says things have moved on so far that shopping has become a secondary activity for some, and developers need to keep this in mind. She says: “It is now necessary to provide the right, tailored leisure offer for increasing dwell times in centres at either end and throughout the day and evening. The leisure facilities within any centre provide an important part of that experi- ence, so much so that in some instances it can be the sole motivation for the visit. For example, dinner coupled with a cinema visit.” Citing the examples of Meadowhall and Merry Hill, Mills says keeping schemes up to date and investing in non-retail activities is a marked trend, which has attracted a new type of tenant. “Operators have been reviewing their acquisi- tion policy and while some of the more eclectic a wider leisure offer to include ice skating rinks, bowling alleys and even bingo, particularly for larger scale shopping developments where there is a much wider catchment available.” Westfield went all out at its latest UK opening in Stratford City,adding a bowling alley and the UK’s largest casino into the mix. At Bluewater, the 55,974 sq ft Glow events space, completed last year, marked a big step for the centre, which has had to keep evolving, particularly since the opening of both Westfield centres in London. brands have not considered centres in the past, their views are changing ,”she adds.“The big devel- opments deliver huge guaranteed footflow. It may ebb and flow but it’s normally quite consistent.” Putting food in shopping centres is hardly a new phenomenon, although it’s become more sophisticated recently. But what is emerging as a genuinely new trend are the more quirky leisure activities. Gillingham says: “Developers need to make leisure more innovative and certainly beyond just the food and beverage offer. There also needs to be It is now necessary to provide the right, tailored leisure offer for increasing dwell times Tracey Mills, Davis Coffer Lyons Hosting events including trade shows, wedding fairs, BBC Good Food Live and a one-off experience last winter, Christmas in New York, has allowed owner Lend Lease to offer multiple reasons to visit its centre. In the case of the New York-themed Christmas, more than 35,000 visitors came to see the show. Lend Lease says it’s also a plus for retailers, not just for the extra traffic. Sponsorship opportuni- ties allow tenants in the centre to tie their brands to various events taking place at Glow. Bal Nahal, operations manager of John Lewis’ Bluewater store, points out that the dedicated events and exhibition space at Bluewater has helped attract new visitors as well as Bluewater’s Glow space hosts events such as wedding fairs In association with:
  • 35. 40 RWP | September 2012 | View the digital edition online at RetailWeek PROPERTY However, figures from the International Council of Shopping Centres suggest that more than half of the people brought into a scheme by a cinema will do some shopping too. McFarland believes there are tangible benefits to retailers in a successful food and leisure strategy, particularly in town because of the complex symbiotic relationship that exists between shopping and the wider community. Using the example of the New Square scheme extension in West Bromwich, which Tesco is anchoring and funding development work on, she explains:“The centre will effectively create a new leisure quarter in West Bromwich and will include a cinema, restaurants and cafes, all the elements needed to increase dwell time and encourage shoppers to return. “New Square will also be an extension of The Public, a community and cultural space located beside the scheme. Developers must recognise that feeding into the existing leisure facilities of a town, as we have done in West Bromwich, is vital for a retail development’s success.” To look at the shopping centres of even 10 years ago compared with present – and future – designs is a reminder of how far things have come. Thomas Rose, associate for leisure and restaurants at Cushman & Wakefield, says the die is now set in terms of how the future will look, and a half-way house just won’t do. “We have seen many proposed schemes where leisure is viewed as secondary to the retail units and going forward this just won’t work,” he says. “Restaurants must form a key component within schemes, not be an afterthought or add-on. Without footfall retail tills aren’t ringing and by adding leisure and restaurants landlords are seeing footfall retention or even growth.” With the need to innovate now greater than ever, the next decade in retail property is going to be one of the most interesting periods of all. A new type of shopping, and a new type of shopping space, is emerging. ■ Capital Shopping Centres (CSC), owner of Braehead Shopping Centre in Glasgow, has revealed its intention to submit a planning appli- cation to build new facilities. It is the first step of a £200m investment at the mall. There are also plans for a new arena for ice and dry sports events, concerts, exhibitions and conferences, as well as a hotel, cafes, restaurants and a new civic square. According to Mike Butterworth, chief operating officer of CSC, “innovation is key to providing entertainment”. British Land’s Whiteley Shopping Centre, due to open in Hampshire in May 2013, comprises 320,000 sq ft with Tesco and Marks & Spencer confirmed as anchors. Smaller units on the outside will be available to independent local retailers around a market square area. The London Designer Outlet, next to Wembley Stadium and Arena and being developed by Quintain, will include a nine-screen cinema and 15 bars and restaurants. Part of the centre is integrated into the new four-star Hilton hotel on the site. Phil Cottingham, managing director of Quintain Estates & Development, believes a strong leisure offer is crucial in maxim- ising potential capital spend at shopping centres. Beyond food and drink Ambitious leisure schemes in shopping centres include the arena at Braehead Shopping Centre in Glasgow (top) and The Circle 360 champagne bar at Manchester’s Trafford Centre (left) Restaurants must form a key component within schemes, not be an afterthought Thomas Rose, Cushman & Wakefield providing regular customers with more reasons to return.“John Lewis Bluewater has participated in a number of events and exhibitions, which have proved useful to our business,”he adds. There are many examples of ambitious, new concepts emerging in the UK, such as the Legoland Discovery Centre at the Trafford Centre. Wavehouse, an indoor surfing experi- ence, has also arrived in the UK and could open in shopping centres soon – in Durban, South Africa, for example, shoppers can visit Wavehouse at the Gateway shopping mall. Hammerson portfolio director Martin Plocica believes that every new build is going to have leisure at its core. “The prominence of catering and leisure within schemes will continue and will be clearly tailored and targeted for the individual catchments,” he says. “What works in Brent Cross doesn’t necessarily work for a Union Square shopper. The leisure element will go beyond catering and will focus more on offers that provide consumers with an experience.” Nobody would deny that bringing people in and keeping them in a centre is good for a retailer’s business, but only if they actually shop. Dwell time and centre loyalty are great, but they are conceptual ideas. In association with:
  • 36. Love Coffee is a modern, fresh concept. Family-run and solidly financed, it is already making its mark. Established in 2009 by café entrepreneur, Shashi Patel, it now boasts 26 cafes and stretches from Manchester to London. There will be 32 stores by Christmas! Its success comes from attention to detail, superb customer service and, above all, a vibrant brand which delivers customers expectations of great coffee and a range of quality, good value, freshly made food. Love Coffee is in a position to expand rapidly and is keen to discuss new sites with shopping centre operators, developers and landlords. Love Coffee is run by a family team with over 20 years of experience in running food focused coffee cafes in prestige centres. Growth is not dependent on outside investors. The brand is young, fresh and hungry for success! Going places fast! If you have a great location please contact Harper Dennis Hobbs on 0207 462 9100 or visit
  • 37. Manchester * 0161 638 8740 London * 020 7484 5086 Follow @foundationrec Foundation Recruitment * General Practice Surveying * Shopping Centre Management * Facilities Management * Retail & Leisure Estates * Property & Retail Marketing THE onE SToP SHoP FoR RETaiL ESTaTES RECRuiTMEnT How well does your retail property management software measure up? Meet us at the BCSC, Stand H8, to find out how our integrated technology can be tailored to meet your organisation’s specific needs. From site selection, to projects, to lease admin & turnover rent, to maintenance, to sales analysis, the Manhattan suite has the entire retail property lifecycle covered. Arrange a meeting To pre-arrange a meeting with our team, please contact us on +44 (0)20 7269 8500 or BCSC | Stand H8 BCSC Diploma in Shopping Centre management Designed in partnership with the British Council of Shopping Centres and widely recognised by leading employers in the UK and internationally, this newly updated course has been specifically designed for those ready to take the next step in their career development within the retail industry. Why study this course? • improve the management of shopping centres for the benefit of customers, retailers and owners • Develop business skills and gain a wider understanding of shopping centre management • Build on personal and practical experience in the workplace • Benefit from on-site presentations and tours of leading UK shopping centres and a broad range of innovative online learning activities To further your career call 0800 019 9697, email or visit our website. Follow us on Twitter @CEM1919
  • 38. | September 2012 | RWP 43 Events and highlights from this year’s BCSC conference and exhibition at ACC Liverpool Embracing retail property at BCSC MONDAY SEPTEMBER 10 09.00 - 16.00 Golf competition 10.30 - 14.45 Study tour to Liverpool One and Forever 21 retail unit 12.00 - 20.00 Registration and exhibition open, Liverpool ACC 14.30 - 15.30 Concurrent seminars, Liverpool ACC Demolition – the new leasing strategy? With vacancy rates rising and retailers more demanding about the space they acquire, this session explores whether some locations will have to be demolished to facilitate provision of the modern formats to allow occupancy. Utilisation of retail floor space Proactive use of floor space does not stop at shop fronts and involves a lot more than ‘routine’ commercialisation. The panel discusses the most effective and creative ideas for the best use of space. Fit out or switch off? Low carbon futures – behaviours or technologies? It is estimated that there are 820 shopping centres with 140 million sq ft of lettable area in the UK, with 500,000 car spaces. The seminar looks at ways to reduce energy consumption through sensible shop fit-outs and better local behaviour. 16.00 - 17.00 Concurrent seminars, Liverpool ACC All is not lost – retail-led regeneration is alive This year sees the lowest level of new retail development being delivered for decades. Using Guildford as an illustrative example of positive development, the session shares a public sector, investor and retail perspective on what the future holds for retail-led regeneration. Multichannel retailing – where are we heading? The panellists explore the challenges multichannel retailing presents and their implications for future demand for floor space. Debt, deleveraging and new lending – the biggest threat we now face? The session examines the lending intentions of some of the major banks and lenders to the retail property market, and what those mean for the sector. Supermarkets – the must-have anchor tenant Supermarkets have always played an important role in the success of a shopping centre. The panel explores whether they are in fact indispensable 18.00 - 20.00 Opening show party, Liverpool ACC In association with: ACC Liverpool adjoins the Echo Arena making it suitable for large events
  • 39. 44 RWP | September 2012 | WEDNESDAY SEPTEMBER 12 09.00 - 15.00 Exhibition and registration open, Liverpool ACC 10.30 - 11.30 Concurrent seminars, Liverpool ACC Retail futurescape – what will the retail sector look like in 10 years’ time? Technology and consumer demand are shaping the retail sector. This session explores what changes the industry should expect in the future. What do retailers want from new centres? With the new wave of retail developments being planned, the panel asks what retailers are looking for from a new style of shopping centre. Re-tuning consumer trends – what do shoppers really think about the latest market trends? Retailers are used to listening to customers, but how well does the retail property market respond? The session presents consumer insight that will indicate some key retail developments. Are you being served? Examining the RICS The RICS Service Charge Code has recently been updated, recognising how the industry has moved on since its previous iteration in 1996. The panel explores the main changes and how far the industry has come towards measuring service charge ‘value’. 13.00 Lunch and afternoon networking in the exhibition, Liverpool ACC 15.00 Exhibition and event close TUESDAY SEPTEMBER 11 07.30 – 09.30 Place North West and Liverpool One, Academy One, Stanley Building, Hanover Street Business Breakfast – Liverpool, Making it Happen 08.00 - 19.00 Registration desks open, Liverpool ACC 08.00 - 09.00 Tea and coffee served in the exhibition 09.15 - 10.30 Conference sessions, Liverpool ACC Opening and welcome from BCSC president Peter Drummond, urban planner and designer, chief executive of BDP and president, BCSC Keynote session: Luke Johnson, chairman, Risk Capital Partners LLP 10.30 - 11.00 Refreshments served in the exhibition 11.00 - 12.00 Concurrent seminars, Liverpool ACC Can town centres fight back? This session imagines the town centre of the future, and how retailers can adapt to changing consumer shopping trends. Managing your overseas shopping centre assets Panellists present the key principles and the potential pitfalls of managing property assets abroad. Food and beverage – the new anchor This session gives an overview of the food service industry in the UK and the trends that retailers need to be aware of. Happy returns – measuring marketing impact and return on investment Panellists explore how measuring the effectiveness of marketing strategy has become central to shopping centre management. 12.00 - 14.00 Lunch, Liverpool ACC 14.15 - 15.15 Keynote Session: Mary Portas 15.30 - 16.30 Concurrent seminars, Liverpool ACC Consistently delivering differentiated customer experience in your centre – how the BCSC and ACE Awards can support you This session will focus on the key areas that BCSC is encouraging centres to develop to enhance the customer experience. Liverpool One – a blueprint for city centre regeneration? Insiders share the lessons learnt from the Liverpool development. The changing retail and commercial construction market – a client, consultant and contractor perspective The panellists present development opportunities and market conditions in the commercial construction sector; how clients are approaching large-scale development, and the construction team’s role in building retail value. Fresh retail – what is the retail sector doing to stay competitive? The panel looks at what retailers are doing to stay fresh and relevant to customers, exploring areas such as rebrands, new lines and technology. 16.45 - 18.00 ACE Awards Presentation and drinks reception, Liverpool ACC 19.00 Exhibition close Richard White director, Estates Consultancy Company, former group property director, New Look Susan Aubrey-Cound former new channel director, Marks & Spencer Sue Willcox head of planning and property communications, Sainsbury’s Luke Johnson chairman, Risk Capital Partners LLP Mary Portas retail expert Rob Hadfield property director, Debenhams Chris Harris group property director, Arcadia Adrian Trotter regional estates manager, Next Key retail speakers In association with:
  • 40. Outgrowing your warehousing? To become a Tenens’ tenant call Simon Emms, Estates Manager, on 08702 415640 visit us at or email us at Howard Tenens Associates Ltd, Kingfisher Business Park, London Road, Thrupp, Stroud, Gloucestershire GL5 2BY. Maybe it’s time to become a Tenens’ tenant. Because we own 3,000,000 ft2 (278,700m2 ) of high quality storage space across the UK, you’ll find Howard Tenens can always offer you a tailored solution in your ideal location. l Warehouses available from 5,000 ft2 (465m2 ) up to over 200,000 ft2 (18,580m2 ). l Locations include Andover, Ashby de la Zouch, Boston, Felixstowe, Sharpness, South Ockendon and Swindon. l Excellent transport links to all UK delivery points and beyond. l Modern warehouse facilities in a contemporary business environment. The space is flexible and scalable, perfect for expanding businesses or those with seasonal peaks and troughs and, since we have complete control over our own costs, our rates are highly competitive.
  • 41. Tuesday 18th December Radisson Portman Square, London W1 7pm to 2am • Three course dinner Live Band • Guest Speaker Casino • Black Tie Price £95.00 pp plus VAT (£114.00 inc VAT) Tables of 10 £950.00 per table plus VAT (£1,140.00 inc VAT) We have numerous sponsorship opportunities available. Please contact Louise Oliver for more information on: 01799 544902 or by Email: Limited tickets available. Please book early! Bookings confirmed on receipt of payment. No refunds available. Call 01799 544902 to book your places Supporting
  • 42. Top tier shopping centres sign up for GCW expertise Primark plans Milton Keynes move Look out for... 2 Latest DeaLs 3 OLYMPIC HOMes 4 GIRL POWeR Newsletter september 2012 BIG IN RetaIL In brIef... FOOD kNOW-HOW DeLIveRs tOP saLe ✱ GCW has successfully disposed of 92-100 High Street, West Wickham for London & Capital Properties. Aberdeen Asset Management acquired the freehold food store investment let to Marks & Spencer for £7.91m, an initial yield of 4.3 per cent. PRaxIs aDDs LeeDs tO GCW LIst ✱ Praxis has appointed GCW as letting agent on Leeds Crossgates shopping centre. The strong district centre is anchored by Wilkinsons and Tesco Metro. GCW also acts for Praxis on Salford and Castle Dean shopping centres. RetaILeRs eNJOY WINDsOR OPeNING Cotswold Outdoor and Superdry are enjoying strong trading from their new stores in Windsor. Both leading retailers have opened in a recently redeveloped section of King Edward Court shopping centre. More on page 3 ■ Castle Mall in Norwich and The Galleries in Bristol have joined the ever-growing list of shopping centres to make use of GCW’s retail property expertise. GCW will work with owners InfraRed and asset managers Hark Group on reinvigorating the newly acquired Castle Mall in Norwich which sits within the UK top 10 regional shopping destinations. InfraRed bought the 330,000 sq ft centre from The Mall Fund for £77.3m. It spans more than 80 shops and tenants include TK Maxx, New Look, Boots and an eight-screen Vue Cinema. InfraRed re-entered the UK shopping centre market in 2011 after five years’ absence, acquiring The Galleries in Bristol and the St Johns centre in Liverpool. “We have directed our investment into the top tier retailing cities and into large centres that are characterised by high footfall, affordable rents and strong retailer performance. We plan to add considerable value to the centres through additional investment,” says InfraRed director Chris Huxtable. GCW has recently been appointed by InfraRed as agents on The Galleries - a 322,000 sq ft shopping centre in the heart of Bristol. The centre’s tenant list includes Argos, Boots, Gap and TK Maxx. InfraRed has made significant improvements to The Galleries in the 12 months since its purchase, relocating the existing food court to the middle level of the centre and reconfiguring space on the upper level to create a large anchor store for 99p Stores. These latest appointments boost GCW’s portfolio of shopping centres to 33, its highest total ever. MORE INFORMATION FROM ■ Leading retailer, Primark has agreed a deal to move to thecentre:mk, taking a newly developed 80,000 sq ft store over three floors. A planning application for the new store has been submitted and the redevelopment will also create a 17,500 sq ft retail unit and an improved market site. Subject to planning, work is expected to start on the Grade II Listed building in spring 2013 with Primark due to open in 2015. “Milton Keynes was one of Primark’s main requirements so we are delighted to have secured the deal to bring the store to thecentre:mk. The retailer is one of the biggest generators of footfall on the high street and so will have a dramatic impact on this part of the centre, extending the prime pitch,” says GCW director David Gooch. The deal is part of a wider investment plan for thecentre:mk which includes a £27m extension and refurbishment currently underway at John Lewis and a £6m extension and refit to Next following a £4.5m refurbishment at House of Fraser, which completed at the end of last year. MORE INFORMATION FROM InfraRed’s purchase will boost Norwich’s Castle Mall GCW September 1 14/8/12 12:50:49
  • 43. DeaLs Big in retail 2 sePteMBeR 2012 ✱ In Mell Square, Solihull, Hotter Shoes takes a 1,730 sq ft unit on a 10 year lease at £115,000 pa; Trespass takes a 2,800 sq ft unit at Mill Lane on a five year lease at a base rent of £40,000 pa or 15 per cent of turnover; and Oxfam opens a 650 sq ft books and music store at Drury Lane on a five year lease at £25,000 pa. GCW acts for owner Aviva Life and Pensions. ✱ GCW client Fat Face has taken a number of new stores all on a 10 year lease. It moves to a 2,296 sq ft unit in Ye Olde Vaults at Nantwich High Street at £57,500 pa; at Broad Street Ludlow takes a 1,650 sq ft unit for £48,000 pa; takes a 2,600 sq ft unit at The Square, Stow on the Wold and opens a 1,360 sq ft store at Bridge Gate, Hebden Bridge at £25,000 pa. ✱ Tesco Express takes a new 5,100 sq ft store at Ashford High Street on a 20 year lease for £50,000 pa. GCW acts regularly for Tesco completing more than 10 deals a year over the past five years. ✱ GCW has agreed two deals for LaSalle Investment Management at Lion Walk in Colchester. Card Factory takes a 2,000 sq ft unit adjacent to Bhs on a 10 year lease at £150,000 pa. The new owner of Game, OpCapita has closed its other two stores in the town and takes a new five year lease at £80,000 pa. Bishop’s Stortford woos leading fashion retailers ■ GCW has won its first shopping centre appointment from Legal & General following the investor’s £58.25m purchase of Jackson Square shopping centre in Bishop’s Stortford. The centre was re- developed and extended in 2007 and provides 250,000 sq ft of retail units anchored by a 74,000 sq ft Sainsbury’s. Other leading retailers in the centre include Argos and Wilkinsons. GCW sees plenty of opportunities for the centre, based in an historic market town with an affluent catchment area. “Several aspirational retailers are currently located on the edges of the town and could be attracted to the centre. We plan to broaden the type of retailers in Jackson Square and attract some leading fashion brands,” says GCW director Duncan Kite. “Legal & General has owned the scheme for a year and is now well placed to understand exactly what it can achieve and we look forward to helping put those plans into action,” adds Kite. MORE INFORMATION FROM ■ GCW has secured its first leisure deal at The Swan Centre in Eastleigh following the broadening of its remit at the centre earlier this year. Restaurant Chimichanga moves to Eastleigh on the back of the success of its sister restaurant Prezzo, already a tenant in the scheme. It takes a 4,700 sq ft unit on a 25 year lease at a base rent of £55,000 pa or 10 per cent of turnover with 12 months rent free. The deal is the first of three restaurant units being let by GCW as part of the existing leisure offer that includes AMF Bowl, Vue Cinema, and a suite of restaurants including Frankie & Benny’s, Nando’s and Harvester. GCW has also agreed deals with a number of retailers on behalf of Prudential’s Scottish Amicable Fund. Strong trading has encouraged Card Factory to upsize and relocate to a 3,000 sq ft unit on a 10 year lease at £62,500 pa. Mobile phone retailer O2 moves into Card Factory’s old 1,300 sq ft unit on a 10 year lease at £36,000 pa with 12 months rent free. Sports Direct also moves to the centre taking a 11,500 sq ft unit on the upper level on a 10 year lease at £70,000 pa with 12 months rent free. MORE INFORMATION FROM Eastleigh turns in strong trading Jackson Square offers an affluent catchment area GCW September 2 14/8/12 12:50:50
  • 44. Big in retail sePteMBeR 2012 3 Windsor transforms outlook ■ Leading retailers Cotswold Outdoor and Superdry are trading well above expectations from their newly opened stores within a recently redeveloped section of Windsor’s King Edward Court shopping centre. London and Associated Properties has reconfigured and subdivided a former Boots store to create three new units. The work has transformed the appearance of the building and includes full height glazed frontages to King Edward Court. GCW negotiated a surrender of the Boots’ lease and pre-let two of the new units. Superdry has taken a 3,650 sq ft store on Peascod Street at £185,000 pa on a 10 year lease and Cotswold Outdoor has taken one of the two units fronting King Edward Court on a 10 year lease at £120,000 pa increasing to £140,000 pa in the fifth year. It trades from 1,240 sq ft on the ground floor and 7,500 sq ft on the first floor. Retailers across Windsor are trading well, buoyed by the tourist spend and an affluent catchment area. Robert Gatwood has expanded to create a Rolex shop-within-a-shop, Timberland has regeared its lease for a further 10 years at £88,000 pa on the back of good trading, and Baskin Robbins has taken a kiosk within the centre at a rent of £20,000 pa. MORE INFORMATION FROM ■ Student accommodation provider Unite has acquired a development site adjacent to the Olympic Park and Westfield Stratford City in a deal agreed by GCW. Unite plans to develop a 950-bed student accommodation tower ranging in height from 12 to 25 storeys and providing 891 single-study bedrooms and 60 studios with communal areas. The scheme has planning approval and Unite will take possession following the Paralympic Games. The site fits well with Unite’s strategy for development being both close to a major transport interchange, Stratford International, and leading educational facilities, the University of East London and Birkbeck College. Westfield Stratford City has 1.9 million sq ft of retail and leisure space and planning approval for 1.1 million sq ft of office space in the next phase. MORE INFORMATION FROM ■ One of the latest deals by GCW’s investment team sees CBREi purchase a portfolio of properties from Threadneedle for £30m. The portfolio includes properties in Truro, Reading, Worcester and Leeds and was previously managed by Liverpool Victoria. The deal includes a property on Truro’s Pydar Street let to Boots and a unit on Reading’s Broad Street let to Phones 4 U, both showing initial yields of 7 per cent. A third property is on Worcester’s High Street and let to Barclays Bank, reflecting an initial yield of 6.2 per cent; and another on Leeds’ Commercial Street is let to Lush and showing a yield of 9 per cent. “Investors still have an appetite for good quality well- priced assets and those with available funds can exploit excellent opportunities in the high street,” says GCW director Fiona Nichols. MORE INFORMATION FROM Unite settles in Olympic home Phones 4 U trades from Reading’s Broad Street GCW’s team secures top deal DeaLs ✱ GCW client JoJo Maman Bebe has opened four new stores. In Glasgow it has taken a 1,300 sq ft unit at £48,000 pa at Great George Street; at Bridge Street, Chester a 1,700 sq ft unit at £50,000 pa; and at South Road, Haywards Heath a 1,100 sq ft store at £35,000, all on 10 year leases. The retailer has also opened a 1,200 sq ft unit at Market Harborough’s Adam and Eve Street on a 15 year lease at £25,000 pa. It also has five stores in solicitors’ hands. ✱ In a GCW deal for the landlord at Heath Road in Twickenham, Sue Ryder takes a 10 year lease with a five year break on a 2,500 sq ft unit at £54,000 pa. ✱ GCW’s latest deal for Farrow & Ball sees the paint and wallpaper retailer take a 1,323 sq ft store at Tranquil Vale in London’s Blackheath on a 10 year lease at £31,500 pa. GCW September 3 14/8/12 12:50:50
  • 45. Big in retail 4 sePteMBeR 2012 Girls Can Win ■ GCW’s female triathlon team took gold at the Jones lang lasalle Property Triathlon in the relay event beating off strong competition from 30 other women’s teams. The trio of Beatrice Fairley, Fiona nichols and Emma lucas swam, cycled and ran the course in a total time of 1hr 25 minutes. not only did they beat all the other women’s teams but GCW’s male relay team too. Over 2,200 competitors took part in the event which is now firmly established as one of the UK’s largest triathlons. it has raised over £1 million so far for charities including Macmillan Cancer. GCW is a market-leading retail property consultancy, offering a nationwide service. Chris Baker 020 7647 4819 steve Brown 020 7647 4823 James Crittenden 020 7647 4816 Jonathan Daniels 020 7647 4822 Beatrice Fairley 020 7647 4815 Clive Gillingwater 020 7647 4801 David Gooch 020 7647 4808 Jocelyn Holmes 020 7647 4814 simon Horner 020 7647 4807 Oliver Horton 020 7647 4806 Chris Hovington 020 7647 4805 Duncan Kite 020 7647 4804 Emma lucas 020 7647 4810 lisa Manley 020 7647 4803 simon Morris 020 7647 4802 Fiona nichols 020 7647 4809 James Pearson 020 7647 4817 Harry Polhill 020 7647 4826 alan rawlins 020 7647 4820 Gareth storer 020 7647 4825 nick Warr 020 7647 4818 Keith Whale 020 7647 4800 Our People Big in retail ■ Leading fashion retailer, Top Shop has moved to the Nicholson Centre in Maidenhead, giving the centre a boost in an increasingly competitive market. In a deal by GCW for landlords Irish Life, Top Shop has committed to a 10 year lease on a 6,000 sq ft store at a rent of £125,000 pa. “Maidenhead faces tough competition from nearby towns such as Windsor and Reading. We expect the Top Shop move to help attract other fashion retailers to the scheme,” says GCW director Duncan Kite. MORE INFORMATION FROM ■ Footwear specialist Shoon has joined GCW’s expanding portfolio of retailer clients, following investment in the business by GA Europe, the retail restructuring specialist. The footwear chain has been bought-out by Shoon’s management team led by managing director Stephen Sanders, after going into administration in February 2012. GA Europe is supplying funding as well as taking a direct stake in the business. Shoon will continue to operate 11 stores in Bath, Brighton, Cheltenham, Epsom, Guildford, Kingston- upon-Thames, Reading, Salisbury, St Albans, Tunbridge Wells and Winchester. GCW has been retained to deal with the existing estate, in the first instance agreeing terms to assign sustainable properties to the new company. The retailer plans to acquire new stores from 2013. “We look forward to working with Shoon. As a secure business it will be well set-up for future expansion,” says GCW director Simon Morris. MORE INFORMATION FROM Local focus pays off in Stratford Maidenhead wins Top Shop Shoon makes future plans ■ Investment in an innovative and modern exterior for The Stratford Centre has given a fillip to the already successful shopping location – attracting more shoppers and pushing the footfall to well in excess of 500,000 people a week, up from 420,000. The centre which is focussed on providing a convenience offer for local residents is well placed between transport hubs and local homes. Recent deals by GCW in Stratford include a letting to Lituanica – a Lithuanian convenience store. It takes 1,900 sq ft on a 10 year lease at £87,500 pa. HSBC has relocated to a 6,500 sq ft unit on a 10 year lease at £152,000 pa and Costa Coffee moved to the heart of the centre to a 2,000 sq ft unit at £85,000 pa. The new management of fashion store Peacocks has committed to the centre, taking a new lease on its existing 17,000 sq ft retail unit at a rent of £200,000 pa. “Like many London suburbs, the centre has proved to be very resilient because the local community values the convenience offer. It has absolutely gained from Olympic investment in the local area,” says GCW director Duncan Kite. MORE INFORMATION FROM GCW September 4 14/8/12 12:50:51
  • 46. | September 2012 | RWP 47 At the Centre of Retail Some of the key retail property deals that have been completed in the UK in recent months Dealsdigest 1 Type Retail warehouse Date Jul 30, 2012 Location Westside Retail Park, Guiseley Tenant Asda Living Landlord British Land Size 20,000 sq ft, plus 18,000 sq ft mezzanine Lease length 15 years Description British Land now has 11 Asda Living stores across its portfolio Landlord agents Wilkinson Williams and BNP Paribas Tenant agents Cushman & Wakefield and Eric Young & Co 2 Type Shopping centre Date Aug 27, 2012 Location Meadowhall, Sheffield Tenants Lego / Armani Exchange / Cath Kidston Landlord British Land and London & Stamford Size 2,162 sq ft / 3,550 sq ft / 3,574 sq ft Lease length 10 years / 10 years / 13 years Description This is Lego’s first store in Yorkshire Landlord agents Smith Young and CBRE Tenant agents Cushman & Wakefield and CBRE 3 Type Supermarket Date June 2012 Location Meadowbank Quay, Strand Road, London- derry, Northern Ireland Tenant Sainsbury’s Landlord A client of LaSalle Investment Management Size circa 70,000 sq ft Description The property is let in its entirety to Sains- bury’s on a full repairing and insuring lease for a term of 25 years The lease is subject to five yearly upward-only rent reviews 4 Type Retail warehouse Date April 2012 Location Whistleberry Retail Park, Hamilton Tenant B&M Landlord Edgemore (Whistleberry) Size 30,000 sq ft Lease length 10 years Landlord agents Eric Young & Co and Montagu Evans Tenant agent Cushman & Wakefield 5 Type Retail warehouse Date May 2012 Location Unit 6A, Braid- furte Retail Park, Lanark Tenant Brantano UK Landlord County Properties (Northern) Size 5,000 sq ft Lease length 10 years Landlord agents Eric Young & Co and Appleton Craig Tenant agents Cushman & Wakefield 6 Type Shopping centre Date June 2012 Location Unit 2, 23 Unicorn Way, The Kingdom Shopping Centre, Glenrothes Tenant Poundworld Landlord CIS Size 9,160 sq ft Lease length 10 years Landlord agents Eric Young & Co and Kennedy & Co Tenant agent Francis & Company 7 Type High street Date July 2012 Location Unit 2, 53-57 High Street, Inverness Tenant Hotter Shoes Landlord Marjorie H Walker Retirement Trust c/o Cowiesburn Asset Managers Size 1,043 sq ft of ground floor sales space with 906 sq ft of storage space Lease length 10 years Landlord agent Eric Young & Co Tenant agent Savills 8 Type High street Location 201/202 Sloane Street, London SW1 Tenant Tom Ford Size 8,000 sq ft Description Cushman & Wakefield advised Tom Ford on the acquisition of its first UK store and flagship. One of the most important luxury transactions in London in the last five years Landlord agent Savills Tenant agent Cushman & Wakefield 9 Type Letting Location 527 Oxford Street, London Tenant Asics Landlord Korine Property Partners Size 7,000 sq ft Landlord agent Cushman & Wakefield 10 Type Retail park Date Opening sched- uled for October 2012 Location Bedford Interchange Retail Park Tenant Next Landlord Standard life Investments UK Retail Park Trust Size 15,000 sq ft, plus 15,000 sq ft mezzanine Lease length 15 years Description Next was under sized in its existing location at the retail park and wished to expand into larger premises Landlord agents Edgerley Simpson Howe and Morgan Williams Tenant agent McMullen Wilson 11 Type Retail park Date Opening sched- uled for Christmas 2012 Location Bedford Inter- change Retail Park Tenant Arcadia Data by: 8 2
  • 47. At the Centre of Retail Landlord Standard life Investments UK Retail Park Trust Size 13,000 sq ft, plus 10,000 sq ft mezzanine Lease length 10 years Description This is a new letting in the former Next unit and will introduce new brands (Topshop and Topman) to the retail park Landlord agents Edgerley Simpson Howe and Morgan Williams Tenant agent CBRE 12 Type Retail warehouse Date July 2012 Location Beach Boulevard Retail Park, Aberdeen Tenant Iceland Foods Landlord Standard Life Investments Size 9,982 sq ft Lease length 10 years Description Unit is adjacent to DW Sports and 85,000 sq ft Asda, which anchors the scheme Landlord agent Coates & Co Tenant agent Mason & Partners 13 Type Retail warehouse Date May 2012 Location Brotherhood Shopping Park, Peterborough Tenant Asda Living Landlord Aberdeen Asset Management Size 37,000 sq ft Lease length 10 years Landlord agents Harvey Spackfield and Savills Tenant agent Cushman & Wakefield 14 Type Shopping centre Date April 2012 Location Unit 8, The Exchange Shopping Centre, Putney, London Tenant Butlers Trading Landlord BlackRock UK Property Fund Size 3,022 sq ft Lease length 10 years Landlord agent Savills Tenant agent Harper Dennis Hobbs 15 Type Retail warehouse Date June 2012 Location Unit F10, Fort Kinnaird Shopping Park, Edinburgh Tenant Mamas & Papas Landlord Gibraltar Limited Partnership c/o British Land Company Size 4,750 sq ft Lease length 10 years Landlord agent Morgan Williams Tenant agent Thompson Heaney 16 Type Retail warehouse Date June 2012 Location Unit 4, Corton- wood Retail Park, Dearne Valley Tenant Smyths Toys Landlord Cortonwood Size 15,000 sq ft Lease length 15 years Landlord agent BNP Paribas Real Estate Tenant agent Thompson Heaney 17 Type Shopping centre Date June 2012 Location Unit 4.14, Trinity, Leeds Tenants Mamas & Papas Landlord Land Securities Size 4,745 sq ft Lease length 10 years Landlord agents Jones Lang LaSalle Tenant agent Thompson Heaney 18 Type Retail warehouse Date June 2012 Location Pitwines, Poole Tenant Go Outdoors Landlord Sainsbury’s Size 36,500 sq ft Lease length 20 years Description Combination of three units to create a unit of 36,500 sq ft Landlord agent Anger- mann Goddard Loyd Tenant agent Thompson Heaney 19 Type Retail warehouse Date July 2012 Location Unit 3B, Crown Point Shopping Park, Leeds Tenant Poundland Landlords Aviva Life & Pensions UK and The Crown Estate Size 8,000 sq ft, plus 2,000 sq ft mezzanine Lease length 10 years Description Former Peacocks unit Landlord agents Wilkinson Williams Tenant agent Thompson Heaney 20 Type Retail park Date May 2012 Location Cyfarthfa Retail Park, Merthyr Tydfil Tenant Marks & Spencer Landlord Hammerson Size 50,000 sq ft Lease length 25 years Description M&S will anchor the 150,000 sq ft extension of the retail park. The full-line store is the first pre-let for the scheme Landlord agents Cushman & Wakefield and Morgan Williams Tenant agent McMullen Wilson 21 Type Shopping centre Date May 2012 Location Brent Cross Shopping Centre Tenant Arsenal Football Club Landlord Hammerson and Standard Life Investments Size 2,270 sq ft Lease length 10 years Description The new store is the first Arsenal space to incorporate the Club’s new retail concept, benchmarked against leading sports brands Landlord agents Cushman & Wakefield and Lunson Mitchenall Tenant agent Harper Dennis Hobbs 22 Type Shopping centre Date June 2012 Location Union Square, Aberdeen Tenant River Island Boutique Landlord Hammerson Size 2,900 sq ft Lease length 10 years Description Union Square has secured the first River Island Boutique, the brand’s dedicated accessories store Landlord agents CBRE and Culverwell Tenant agent Keenan & Co 23 Type Shopping centre Date July 2012 Location Queensgate, Peterborough Tenant Office Landlord Hammerson Size 3,200 sq ft Lease length 10 years Description The new store is the first Office store in Peterborough and continues to strengthen the fashion mix in advance of Primark’s arrival this autumn Landlord agent Lunson Mitchenall Tenant agent CBRE 24 Type Pre-let Date July 2012 Location The Centre:MK, Milton Keynes Tenant Primark Landlord Hermes Real Estate Investment Manage- ment and Prupim 48 RWP | September 2012 | Data supplied by: 14 22
  • 48. MAPIC gAthers thousAnds of InternAtIonAl CoMPAnIes, develoPers, Investors And PublIC AuthorItIes under one roof. loCAte PrIMe retAIl sItes, PArtner wIth leAdIng reAl estAte PlAyers And strIke deAls thAt oPen new terrItorIes And MArkets. MAPIC MOVES RETAIL FORWARD the international market for retail real estate - 18th edition « In one word: networking. unique opportunity, excellent location, one place, and three days during which you can meet everyone you want to meet » rafal fabisiak, Managing director, diva (Poland) register now until october 11th : € 1 290 special price for retailers by september 14 : € 549 190-134 RETAIL EB3 EN.indd 1 24/07/12 11:55 To find out more and meet The Property Team, visit us on Stand H45 at the British Council of Shopping Centres Exhibition (from 10th to 12th September) or email With a guaranteed footfall of over 1 billion a year, city centre locations countrywide and a real understanding of what our passengers want – we can give you and your brand incredible commercial opportunities. Our stations are fast becoming prime shopping destinations in their own right. C50603 Retail Week ad 190x134mm.indd 1 24/08/2012 15:21
  • 49. 50 RWP | September 2012 | At the Centre of Retail Size 90,000 sq ft Description Purpose built, 90,000 sq ft flagship store featuring a premium shop-fit, across three levels Landlord agents CBRE and GCW Tenant agent Macarthur Wilson 25 Type Retail warehouse Date August 3, 2012 Location Phoenix Retail Park, Swansea Tenant Iceland Foods Landlord Barberry Developments Size 6,585 sq ft Lease length 15 years Description A letting to Iceland at an initial rent of £82,312 on the recently refurbished Phoenix Retail Park where other lettings include B&M, Poundworld and Home Bargains. The final unit is available for immediate occupation. Landlord agents Fletcher Morgan and Morgan Williams Tenant agent Mason Owen 26 Type High street Location 121-123 Princes Street, Edinburgh Tenant New Look Landlord LaSalle Invest- ment Managers Size 30,000 sq ft Description The property occupies a prominent position on Edinburgh’s world renowned Princes Street. New Look benefits from a distinctive double height, glazed retailing frontage alongside a new 97 bedroom Premier Inn hotel Tenant agent MMX 27 Type Shopping centre Location Westfield London Tenant Angelica Landlord Westfield Size 750 sq ft Lease length 10 years Description The 750 sq ft store at Westfield London, adjacent to Rituals and Gilly Hicks, has been secured on a 10-year lease. Landlord agent CBRE Tenant agent MMX 28 Type Retail warehouse Location Unit 5, St Andrew’s Retail Park, Birmingham Tenant Iceland Landlord BMW (UK) Trustees Size 8,799 sq ft Lease length 15 years Landlord agent Thompson Heaney Tenant agent Mason & Partners 29 Type Shopping centre Date March 2012 Location Liverpool One Tenant Harvey Nichols Beauty Bazaar Landlord Grosvenor Size 22,000 sq ft Description Cushman & Wakefield completed the letting of the Harvey Nichols Beauty Bazaar at Liverpool One Landlord agent Cushman & Wakefield 30 Type High street Date January 2012 Location 52 Regent Street, London Tenant Lotus Originals Landlord Barco Invest- ments BV Size 4,800 sq ft Description Cushman & Wakefield advised Lotus Originals on the acquisition of 52 Regent Street for its new global flagship store Landlord agent CBRE Tenant agent Cushman & Wakefield 31 Type High street Date May 2012 Location 37a George Street, Edinburgh Tenant The Kooples Size The ground floor is 1,099 sq ft and the basement is 1,445 sq ft Tenant agent Cushman & Wakefield 32 Type High street Location 119 New Bond Street, London Tenant Tara Jarmon Size 3,000 sq ft Description Cushman & Wakefield advised Tara Jarmon on its first London store. The luxury French retailer will open a flagship store at 119 New Bond Street Tenant agent Cushman & Wakefield 33 Type High street Date March 2012 Location 18 Princes Street, Edinburgh and 253 Byres Road, Glasgow Tenant Holland & Barrett Size The Edinburgh is 4,739 sq ft across two floors; the Glasgow store is 1,410 sq ft Lease length Both 10 years Description Cushman & Wakefield has concluded two deals on behalf of Holland & Barrett, a Scottish flagship store in Edinburgh and a new store in Glasgow Tenant agent Cushman & Wakefield 34 Type Shopping centre Date September 17, 2012 Location Unit 8b, St Marks Shopping Centre, Lincoln Tenant The Entertainer Landlord Standard Life Investments Size 5,000 sq ft Lease length 10 years Description This is new letting in a split of the former M&Co unit, the other unit (8a) has been let to Gap Landlord agents Strutt & Parker and Wilkinson Williams Tenant agent Reid Rose Gregory 35 Type Retail warehouse Date July 18, 2012 Location Mayflower Retail Park, Basildon Tenant M&S Simply Food Landlord British Land Size 14,000 sq ft Lease length 15 years Landlord agents Harvey Spack Field and Edgerley Simpson Howe 36 Type Retail warehouse Date May 4, 2012 Location Fort Kinnaird, Edinburgh Tenant Debenhams / Smyths Toys / Mamas & Papas Landlord Gibraltar Limited Partnership, the joint venture between Hercules Unit Trust (HUT) and The Crown Estate Size 60,000 sq ft / 15,000 sq ft / 8,400 sq ft Lease length 20 years / 15 years / 10 years Description The Gibraltar Limited Partnership has agreed a 60,000 sq ft pre-let with Debenhams for a store at Fort Kinnaird in Edinburgh, as part of the reconfiguration and modernisation of the existing shopping and leisure park. Smyths Toys and Mamas & Papas have also signed for new stores Landlord agents Morgan Williams, Montagu Evans and Eric Young and Co Tenant agents Unrepre- sented / Thompson Heaney / Thompson Heaney Data supplied by: 34 30
  • 50. For more information please phone 0844 662 6600 or email Dominic Millar // Matthew O’Halloran The UK’s leading property marketing agency with 12 years specialising in retail. Innovative products from an experienced team. The UK’s leading retail property database. Property information and leasing contacts for ALL shopping centres and retail parks, plus high street availability. The leasing focused retail property event. There’s very limited space remaining for our next event on 30th April 2013 at London’s Old Spitalfields Market. Retail MarketplaceLONDON 2013 c   mpletely changing the way y   u do Business
  • 51. -1897- Retail At the heart of who we are and what we do John Burnside Investment +44 (0)20 7544 2041 Ray Dowse Occupier Advisory +44 (0)20 7544 2013 Chris Borton Property Management +44 (0)20 7544 2115 Capita Symonds Real Estate has a heritage in retail property consultancy, investment and property management while the wider Capita business is known for transforming the built environment and driving business efficiency. This breadth of offer makes us excited about the changing retail environment and the opportunities it presents.