American real estate group Realty is in has reached a deal with Ediston Property Investment Company to purchase its entire property estate for £200.8m. Ediston confirmed it had reached an agreement with RI UK 1 Limited, a subsidiary of Realty, over the sale of its 11 site-strong retail park estate.
The owner of Wagamama has said it is targeting between 200 and 220 restaurants in the long-term, up from its current estate of around 160 UK sites. The Restaurant Group said that strong returns from regional restaurants has given it confidence to accelerate its expansion plans, with the aim of
The owners of Asda are reportedly considering a £500m sale of some of the supermarket retailer’s property portfolio in an effort to reduce debts. The billionaire Issa brothers, Mohsin and Zuber, with the backing of TDR Capital, are said to be in negotiations with Australian firm Macquarie Asset Management regarding
Research by the debt advisory specialists, Sirius Property Finance, reveals that 42% of UK consumers rarely, if ever, take a trip to their local high street, as commercial developers are urged to find ways of tempting shoppers to return and, in doing so, help local communities and economies thrive. The
BrainBox AI has closed the acquisition of the retail energy management system integrator business of its global partner ABB, following its intent to acquire announcement on April 28th. This acquisition represents a crucial step for BrainBox AI in terms of scalability and capacity to better service its current and prospective retail
Wates is set to grow its retail project portfolio with the appointment to deliver three large-scale fit-out contracts on behalf of Marks and Spencer (M&S) in Dundee, Uckfield, and Guildford. With a combined area of over 80,000 sq ft, the three contracts form part of M&S’s major investment to transform
National commercial property and investment company LCP, part of M Core, has acquired a busy edge-of-town retail park in Kidderminster, Worcestershire. Weavers Wharf is a 220,000 sq ft retail park, just a few minutes’ walk from Kidderminster town centre, with anchor tenants Marks & Spencer, Next and TK Maxx, Café
The outlet, located in Wembley Park and now in its tenth year, has also recorded its sixth consecutive month of record-breaking trading as May figures topple over the £8m mark London Designer Outlet (LDO) today announces a bumper crop of upsizings at the capital’s leading fashion and lifestyle destination. Guess,
Landsec announced yesterday plans to invest significantly in its prime retail destinations to further enhance their positive growth outlook. The investment will be led by a £45m transformation plan for Gunwharf Quays, which will see the Portsmouth-based shopping outlet cement its position as the UK’s leading lifestyle waterfront destination. The
Work is underway on a new scheme in Long Eaton, Derbyshire, that will see the development of a new Lidl and Wickes store in the town. IMA Architects (IMA) is working with Clowes Developments to provide all architectural services and act as Principal Designer on the scheme. The company will
American real estate group Realty is in has reached a deal with Ediston Property Investment Company to purchase its entire property estate for £200.8m. Ediston confirmed it had reached an agreement with RI UK 1 Limited, a subsidiary of Realty, over the sale of its 11 site-strong retail park estate. Eidston currently invest in retail parks in Stirling, Haddington, Sunderland, Widnes, Barnsley, Prestatyn, Hull, Wrexham, Glasgow, Daventry, and Rhyl. The group said its portfolio has a value of £208.4m with a contracted rental income of £16.5m. William Hill, chairman of Ediston, said: “The board was very pleased with the interest shown in the company, with proposals being received from a number of potential counterparties. Having considered multiple options, and after detailed analysis, the board determined a sale of the property portfolio to Realty Income was the best means of maximising shareholder value. “The board unanimously considers the disposal to be in the best interests of the company and its shareholders as a whole and recommends that shareholders vote in favour of the resolution at the general meeting.” The group’s general meeting will be held on 26 September. If the acquisition is accepted unconditionally, Ediston’s board will look to seek shareholder approval to voluntarily liquidate the company and distribute all of its assets – which would consist entirely of cash – to shareholders. It was recently reported that Florida-based Realty is eyeing the purchase of Inverness Shopping Park, the Kingston Centre in Milton Keynes, and Serpentine Green in Peterborough from British Land. Also included in the deal is a portfolio of six data centres and offices based in London, which are currently leased to Vodafone. The New York-listed company entered the UK property market in 2019 when it formed a joint partnership with British Land to take ownership of 12 Sainsbury’s supermarkets, in a deal worth £429m. It now has a British portfolio worth over £2bn, having invested in a number of supermarkets, DIY stores, and retail parks. Realty previously told its investors that it sees the UK as an attractive investment hotspot. Building, Design & Construction Magazine | The Choice of Industry Professionals
The owner of Wagamama has said it is targeting between 200 and 220 restaurants in the long-term, up from its current estate of around 160 UK sites. The Restaurant Group said that strong returns from regional restaurants has given it confidence to accelerate its expansion plans, with the aim of now opening between eight to 10 sites from the 2024 financial year onwards. This comes as the group, which also owns the Frankie & Benny’s chain and the Brunning & Price pub group, releases its interim results for the first half of the 2023 financial year. The group said it was also aiming to open between one to three “high quality” Brunning & Price pubs from the 2024 financial year onwards. During the 26 weeks ending 2 July 2023, the group’s total revenue increased by 10% to £467.4m, up from £423.4m the previous year. Whilst the group’s Wagamama, pubs, and concessions businesses had all seen year-on-year increases in like-for-like sales of 7%, 8%, and 29% respectively, its leisure business saw a fall in sales of 3%. The Restaurant Group said that despite more resilient trading in the third quarter, it has continued to rationalise its leisure estate. It now expects to reduce the size of this business to around 76 sites by the end of the financial year, down from 116 sites previous year. This would mean that the group’s two-year rationalisation programme would be delivered in 12 months. The group will hope to achieve this through: the exercising of lease expiries or break clauses on 14 sites; the sale of eight freehold sites; the conversion of three sites to Wagamama restaurants by the end of the 2024 financial year; and the acceleration of the disposal of between 12 and 17 sites through agreements with landlords or alternative tenants. The Restaurant Group expects to exit the vast majority of lease obligations on the circa 40 closed sites by the end of the 2024 financial year. Building, Design & Construction Magazine | The Choice of Industry Professionals
The owners of Asda are reportedly considering a £500m sale of some of the supermarket retailer’s property portfolio in an effort to reduce debts. The billionaire Issa brothers, Mohsin and Zuber, with the backing of TDR Capital, are said to be in negotiations with Australian firm Macquarie Asset Management regarding a sale. The deal would see Macquarie purchase the ground rent leases of around 50 Asda stores, with a clause allowing the supermarket retailer to reassume control of the sites at the end of the 50-year term. Asda would then be able to pay lower rents at these stores while raising higher amounts of equity. The Issa brothers acquired the Asda estate from Walmart in 2021 in a deal worth £6.8bn, however some £2.75bn of debt was included in the transaction. In March, it was reported that the billionaire brothers were eyeing the sale-and-leaseback of the entire Asda estate, worth £8.6bn. The supermarket retailer then disposed of 25 stores to American investor Realty Income in a sale-and-leaseback deal worth £650m. Asda recently reported an increase in sales during the second quarter, which the supermarket said reflected the “strength” of its customer proposition. Building, Design & Construction Magazine | The Choice of Industry Professionals
Research by the debt advisory specialists, Sirius Property Finance, reveals that 42% of UK consumers rarely, if ever, take a trip to their local high street, as commercial developers are urged to find ways of tempting shoppers to return and, in doing so, help local communities and economies thrive. The survey of over 1,000 UK consumers, commissioned by Sirius Property Finance, asked consumers about their shopping habits and how frequently they headed to their local high street. When asked how often they visit, 32% stated that they rarely head to their high street, while a further 10% don’t visit at all. This reluctance to visit their bricks and mortar high street is largely a result of online retail options, with 54% saying they are likely to look to purchase something online before heading to their local retail outlets. And while 21% say that the internet is simply more convenient, other common reasons for avoiding the high street include limited parking availability (24%), a poor variety of shops (22%), and high prices (14%). These factors mean that the most common reason to visit the high street is not general retail, but instead supermarkets and grocery shopping, which 27% say is their main reason for visiting. 19% say they make the trip to take advantage of cafes, bars, and restaurants, while 15% say it’s for health and beauty services such as hairdressers and nail salons. A further 15% say they’re looking to make clothing and fashion purchases, 12% are in the hunt for home and decor outlets, 6% are visiting for entertainment such as cinemas, and 4% are shopping for electronics and technology products. This means that, in total, just 32% are visiting the local high street for retail purposes, while services and experiences account for the remaining 68%. When asked what would tempt them to visit the high street more often, general retail is once again trumped by other priorities. 21% say that more free parking areas would be a significant draw, while 17% say they’d like to see more local and artisan markets and craft stalls. 10% want more green spaces and gardens, and another 10% are looking for more in-store incentives and experiences. Other things that could tempt people to spend more time on their local high street include pop-up shops and temporary exhibitions (9%), outdoor seating and communal areas (9%), regular events like concerts or festivals (9%), pedestrian-only zones (8%), and interactive technology installations (1%). Head of Corporate Partnerships at Sirius Property Finance, Kimberley Gates, commented: “We’ve seen a substantial shift in consumer behaviour in recent times and so the decline of the high street is by no means the fault of property developers, nor is it exclusively their responsibility to try and breathe life back into physical, local retail districts, but they certainly have an important role to play in the rejuvenation. When looking to ensure the future good health of the high street, commercial developers can look towards the things that people say they want – improved infrastructure, attractive outdoor areas and a more diverse range of outlets. When the high street was born, it had no direct competition. But with the arrival of shopping centres and online shopping, the high street must now find a way to offer something that the internet cannot This means experiences, community, socialising, pride in the local area, and an understanding that today’s consumers have plenty of options. They need to be given a reason to frequently visit the high street and our commercial developers can play a big part in achieving this. When they do, the benefits for local communities and economies will be enormous.” Survey results Full survey results can be viewed online, here Building, Design & Construction Magazine | The Choice of Industry Professionals
BrainBox AI has closed the acquisition of the retail energy management system integrator business of its global partner ABB, following its intent to acquire announcement on April 28th. This acquisition represents a crucial step for BrainBox AI in terms of scalability and capacity to better service its current and prospective retail clients. With complementary solutions, both BrainBox AI and the EMS retail business team share the mission of decarbonising and optimising the commercial real estate sector, with multi-site retail at the core. By merging its deep-learning driven expertise with a native integration to legacy systems, BrainBox AI is setting the stage to further advance its position within the retail sector. This acquisition marks a significant development for the company, ushering in another mode of connectivity to its technology. BrainBox AI delivers its AI-tech with the capabilities of energy management optimisation, carbon footprint reduction, customer and employee comfort improvement, and targeted “on-demand” predictive maintenance for HVAC systems. Furthermore, this augmented offering is already gaining momentum with BrainBox AI securing a multi-store contract with a top-tier American retailer with deployment slated for late-summer, early fall of this year. To date, BrainBox AI has decreased its clients’ HVAC electricity spend by an average 16% and gas spend by an average 18%. Additionally, building owners experience significant reductions in maintenance costs, extension of equipment service life, and dramatic improvements in comfort level for customers and associates. As noted by Frank Sullivan, Chief Commercial Officer at BrainBox AI; “Today is an exciting day for us. We are officially welcoming the EMS team into the BrainBox AI family. This event signifies a great step change for us as we continue to scale our business. BrainBox AI’s solution can empower building owners and facilities managers to dramatically reduce their buildings energy spend and carbon emissions. Now, its delivery to customers has been expanded by way of the technology platform that the EMS team brings. With more than 10,000 EMS enabled locations the opportunity to enhance client sustainability outcomes with our AI controls is colossal. We celebrate this moment as we continue to make positive changes in the fight against climate change.” About BrainBox AI Founded in 2017, BrainBox AI was created to address the dilemma currently facing the built environment, its energy consumption and significant contribution to climate change. As innovators of the global energy transition, BrainBox AI’s game-changing HVAC technology leverages autonomous AI to make buildings smarter, greener, and more efficient. Working together with our trusted global partners, BrainBox AI supports real estate clients in various sectors, including office buildings, hotels, commercial retail, grocery stores, airports, and more. Headquartered in Montreal, Canada, a global AI hub, our workforce of over 150 employees, bring with them talent from all sectors with the common thread of being in business to heal our planet. BrainBox AI works in collaboration with research partners including MILA – Quebec AI Institute, the Institute for Data Valorisation (IVADO) as well as educational institutions including McGill University. For more information visit: www.brainboxai.com Building, Design & Construction Magazine | The Choice of Industry Professionals
Wates is set to grow its retail project portfolio with the appointment to deliver three large-scale fit-out contracts on behalf of Marks and Spencer (M&S) in Dundee, Uckfield, and Guildford. With a combined area of over 80,000 sq ft, the three contracts form part of M&S’s major investment to transform its estate in response to changing retail trends, a move that is set to create 3,400 jobs across the UK. The largest of Wates’ contracts, in Dundee, will include the fit-out of a 52,467 sq ft sales floor split across two levels to create a larger full-line store. This will replace the current M&S Foodhall at the Gallagher Retail Park – a project previously delivered by Wates. Work on the new Dundee store will include the creation of a new Simply Food store and cafe as well as home and clothing departments, becoming one of eight new full-line M&S stores. Alongside Dundee, Wates will also complete fit-out projects for two new Foodhalls in Uckfield in East Sussex, and at Guildford Ladymead Retail Park, both approximately 15,000 sq ft, forming part of the retailer’s plans to expand its grocery trade. The M&S Uckfield project starts this summer with completion scheduled in time for Christmas and M&S Guildford Ladymead Retail Park will begin in January next year. All three contracts will be delivered to a fast-tracked schedule in line with M&S’s three-year store transformation programme. Each project is designed to bring more theatre to the shopping experience with new illuminated signage, bespoke wall finishes, new fridge cases and local wall messages. The projects will incorporate a range of energy efficiency measures to support M&S’s sustainability strategy. These contracts build on Wates’ long relationship with M&S, which spans two decades and includes the delivery of nearly 300 fit-out projects across the UK. This includes 50 projects through the retailer’s Foodhall Framework, established in 2014. Recent M&S projects delivered by Wates include the 25,440 sq ft Foodhall at Bluewater, Kent and a full-line fit-out in Colchester. Scott Camp, Managing Director of Wates fit-out and refurbishment business, said: “Retail trends are constantly evolving and working with M&S for the past 20 years, our business has seen how agile they are in their response to consumer needs. Understanding their strategy is absolutely vital to the work we do and enables us to not only bring their vision to life but do so at the pace required. We’re very proud to have worked across some of M&S’s flagship stores, and we look forward to making Dundee, Uckfield and Guildford as exceptional as all of our previous projects on behalf of M&S.” Building, Design & Construction Magazine | The Choice of Industry Professionals
National commercial property and investment company LCP, part of M Core, has acquired a busy edge-of-town retail park in Kidderminster, Worcestershire. Weavers Wharf is a 220,000 sq ft retail park, just a few minutes’ walk from Kidderminster town centre, with anchor tenants Marks & Spencer, Next and TK Maxx, Café Nero, Boots, Sport Direct, McDonalds and TruGym. Premier Inn is also on the site. LCP acquired the centre for an undisclosed sum from Nuveen Estate as part of its proactive acquisition drive in shopping parades, centres and retail parks across the country. James Buchanan, LCP group managing director, said “This significant investment demonstrates our appetite for acquisition and our focus on intensive asset management, where we want to realise opportunities for adding value. “As well as achieving a good return on our investment, we’re committed to improving our retail estate, providing better value for money for tenants and, where there are voids, attracting good-quality brands, ensuring a better shopping experience, and, of course, helping to bring jobs. “It is thanks to the hard work by our team, who identify the sites for us to acquire, then use their considerable expertise and extensive contacts to attract tenants, that our strategy is working.” Simon Eatough, director of landlord and tenant at LCP, will lead the asset management team. Situated on the edge of the West Midlands bordering Worcestershire, 17 miles south-west of Birmingham and 15 miles north of Worcester, Weavers Wharf Shopping Park is accessed via the A456 Park Butts Ringway. There is a pedestrian link to the high street and the adjacent Tesco Superstore. M Core is on a strong acquisition drive, investing in all commercial sectors throughout the UK and Europe. Major UK acquisitions include Cwmbran Centre, Cwmbran; The Galleries, Washington, Sunderland; and Three Spires in Lichfield. It has £300 million available to invest for assets ranging from £500,000 to £30 million and portfolios up to £150 million, and is actively seeking sites for acquisition. LCP’s solicitor was Catherine Gunz at Osborne Clarke and Simon Lewis at Lewis Ellis acted as agent. For the vendor, agent was Paul Williams at Morgan Williams and solicitor was Chris Swallow at K&L Gates. Weavers Wharf has five units available, from 1,256 sq ft to 30,000 sq ft, for more information about availability, contact Simon Eatough: SEatough@lcpproperties.co.uk, or agents for the scheme; Chris Linnel, of McMullen Real Estate and Camilla Clifton of Morgan Williams. Building, Design & Construction Magazine | The Choice of Industry Professionals
The outlet, located in Wembley Park and now in its tenth year, has also recorded its sixth consecutive month of record-breaking trading as May figures topple over the £8m mark London Designer Outlet (LDO) today announces a bumper crop of upsizings at the capital’s leading fashion and lifestyle destination. Guess, Levi’s, The North Face and Lindt have all invested further into their commitment to the LDO following successful trading, with Timberland joining the centre. This latest swathe of store upsizes comes as the centre announces its sixth consecutive record-breaking month of trading. Now in its tenth year, the outlet destination has smashed all previous records set for the months of December through to May, exceeding performance expectations. Trading figures recorded in May have surpassed £8m and beat the previous May record (2019) by 5%. Guess, which has been at the centre for over nine years, will increase its store size by 40% from 3,576 sq ft to 5,016 sq ft in order to introduce a new flagship concept and expand its offer to include menswear and childrenswear. After over seven years of successful trading at the centre, Levi’s will also increase its brand offering by 51% as it upsizes from 2,476 sq ft to 3,744 sq ft. The North Face has committed to a 30% upsizing, increasing its footprint at the centre from 2,770 sq ft to 3,606 sq ft. Timberland will also be joining the LDO having signed a lease to occupy The North Face’s previous unit. Following Lindt’s stellar success at the LDO – the store is the brand’s best performing in the UK without an onsite café – the Swiss chocolatier and confectionary company is investing over half a million pounds in a new fitout, to introduce a leisure offer with a café, incorporating both gelato and hot chocolate counters. Matt Slade, Retail Director at Quintain, said: “These brands’ commitment to further investment in the LDO demonstrates how compelling the centre is as a retail destination to some of the world’s best brands, as well as its longstanding excellent centre performance. “Brands are aware that consumers today expect more from their physical shopping experience, and outlets are no different. The LDO is a testbed for brands launching experimental stores and upsizes following the reassurance of years of successful trading and proven track record of brand performance at the centre. “These upsizings and store upgrades demonstrate the strength of the outlet proposition, which provides customers with greater perceived value through a premium shopping experience that ultimately boost sales.” These latest deals follow a number of new flagship roll-outs by existing brands at the centre, with 20,612 sq ft of additional space being taken by long-standing stores at the LDO since 2020, including global sportswear giants Nike and adidas, as well as fashion behemoths Tommy Hilfiger and Calvin Klein. The LDO, managed by Realm, the UK’s specialist outlet operator, is one of only a few outlets that blends retail, F&B, leisure and events in an easy-to-reach urban setting. It features 265,000 sq ft of retail and leisure space, including 70 outlet stores, and offers guests year-round discounts of up to 70%. Daniel Tomkinson, General Manager, London Designer Outlet said: “It is with great pride that we welcome these new store upgrades from Guess, Levi’s, North Face, Timberland and Lindt, as it demonstrates unyielding confidence in the centre. “Whilst footfall at the centre is boosted by a varied programme of global sporting and music events, it is the LDO’s appeal amongst an extensive local catchment that are choosing to visit often and spend more, which has enabled the centre and its brands to go from strength to strength. “This is evidenced the by the consecutive record-breaking trading months that the centre has recorded over the past six months. These upsizing decisions are a clear indication of how compelling the business case for destinations like London Designer Outlet is.” London Designer Outlet is at the heart of Wembley Park, which features plentiful transport links. Minutes from central London, Wembley Park is easily reached by three tube lines, two train lines, eight bus routes plus ample car parking. Building, Design & Construction Magazine | The Choice of Industry Professionals
Landsec announced yesterday plans to invest significantly in its prime retail destinations to further enhance their positive growth outlook. The investment will be led by a £45m transformation plan for Gunwharf Quays, which will see the Portsmouth-based shopping outlet cement its position as the UK’s leading lifestyle waterfront destination. The targeted investment plan, which will also include investments in Trinity Leeds and St David’s in Cardiff, will be accretive to overall returns, further strengthening Landsec’s portfolio of catchment dominant retail destinations. Landsec’s investment plans, unveiled at a retail-focused Capital Markets Day to be held in Gunwharf Quays today, will see: Speaking ahead of the Capital Markets Day, Bruce Findlay, Managing Director, Retail at Landsec said: “We’re focusing our strategic investment on where we can drive growth and deliver attractive returns. Our prime, catchment-dominant retail destinations have recovered strongly since Covid and, through targeted investment, we’re ensuring they will remain in demand in the future for consumers and brands alike. We’re confident that best-in-class retail property can deliver high single digit to low double digit total returns in the current macro-economic environment.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Work is underway on a new scheme in Long Eaton, Derbyshire, that will see the development of a new Lidl and Wickes store in the town. IMA Architects (IMA) is working with Clowes Developments to provide all architectural services and act as Principal Designer on the scheme. The company will work alongside Millward Consulting Engineers and Roe Developments to deliver the site, known as Stadium Trade Park. The 1.68-hectare Stadium Trade Park will be built on a brownfield former industrial site that has been derelict since 2014, located just off Nottingham Road. Completion is expected next year and once finished, the site will feature a new Lidl and Wickes stores, car parking for 157 vehicles, a service yard and all associated boundary treatments and landscaping. The site will also bring new employment opportunities to the area. Marc Freeman, Director at Clowes Developments said: “We are delighted to welcome both Wickes and Lidl GB to Stadium Trade Park. The site has been in the planning stage since 2018, so it’s great that we are now up and running on the build. We expect both the new Lidl and Wickes stores to be very popular with the local community once they are complete and bring economic benefits to the town.” Joe Travers, Associate Director at IMA Architects said: “This is our latest project with Clowes, and we are enjoying regenerating this site which has been derelict for so long. Given the close proximity of residents, we have been considerate to their needs and our plans include additional landscaping, boundary treatments and acoustic mitigation measures to improve aesthetics and to ensure the scheme does not adversely impact local people.” Sarah Tait, Property Director at Wickes said: “We’re thrilled to be expanding our Wickes store in Long Eaton, Stadium Trade Park. The masterplan of the site and the fact that we can be involved in the design stage meant we could develop a location that perfectly suited our needs, and we are looking forward to opening the store in early 2024.” Lidl GB’s Regional Head of Property, Dominic Bryan, commented: “We are delighted to be part of this development and looking forward to bringing our high-quality produce at the best possible value to those in the local community.” Clowes Developments is one of the UK’s largest and strongest privately-owned property investment and development organisations. Headquartered in Ednaston, Derbyshire, the company are experts in land acquisition and promotion, property development and asset management, with 18,000 consented residential plots and 3,000 acres of development pipeline across the UK. IMA is an award-winning firm of architects based in Blaby, Leicestershire. The firm has completed more than 200 projects nationally and is actively working on 75 large-scale projects across the UK, Ireland and further afield. IMA works across all sectors and with a range of FTSE 100 companies – such as Marks & Spencer – as well as global brands including an international discount supermarket retailer. The company is a proud Community Partner of Leicester City Football Club and a sponsorship partner of both Leicester Tigers RFC and Leicestershire County Cricket Club. Building, Design & Construction Magazine | The Choice of Industry Professionals
