CBRE Global Investors Turns to Shopping Centres
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BIG IN RETAIL www.gcw.co.uk Newsletter February 2015 CBRE Global Investors IN BRIEF... FIVE SIGN ON FOR turns to shopping centres SHOPPING CENTRE EXPERTISE ■ GCW has advised long- GCW has added five new standing client CBRE Global shopping centres to its Investors on the purchase portfolio of clients with of three shopping centres, Fremlin Walk in Maidstone, marking the fund manager’s and St Anns in Harrow entry into the UK shopping joining CBRE GI’s three new centre investment market. centres in Hammersmith, CBRE GI has bought the Fulham and Epsom. The five three centres in two separate set to benefit from the firm’s deals totalling £348.5 million. expertise in shopping centre It acquired Hammersmith asset management. Broadway and Fulham The Ashley Centre dominates and a loyal catchment,” says Read more on pages 3/4 Broadway centres in West Epsom’s town centre retailing Nichols. London for £270.5 million on The two other centres, ABERDEEN INVESTS behalf of its Malaysian pension German pension fund. We Hammersmith Broadway IN CHIPPENHAM fund client the Employees were able to combine our and Fulham Broadway GCW has secured a deal Provident Fund. It separately investment expertise with our were purchased from the for a client of Aberdeen purchased the Ashley Centre UK retail knowledge to show William Ewart Group in a deal Asset Management to buy in Epsom, Surrey for £78 why it was such an attractive reflecting a blended net initial Chippenham Retail Park million on behalf of a German deal,” says GCW director yield of 5%. They are both for £11.234 million. The pension fund from the Carlyle Fiona Nichols. flagship assets, located in deal offers good rental and Group at a net initial yield of “The Ashley Centre has affluent London areas above growth potential for the 6.1%. huge long-term potential key transport hubs and with investors. The Ashley Centre for growth. It had been held very strong footfalls. Find out more on page 2 dominates Epsom’s town in an investment vehicle “Both our clients were centre and is anchored by that had not been able to looking for long-term secure House of Fraser alongside a spend any money on the cashflow and all three assets raft of high profile retailers. centre so we have identified meet the return criteria. We are GCW introduced the centre numerous asset management pleased to have acquired three to CBRE GI, assessed the opportunities which we believe shopping centres with asset suitability for purchase, and will drive the rents forward. management opportunities, managed the bidding process There is obvious potential to strong occupational demand ON THE SCENT FOR against other UK institutional modernise the centre against and with on-going rental STORE EXPANSION investors. a back-drop of a strong retail growth potential,” says Chris The Fragrance Shop is the “We worked with CBRE offer, good demographics Gilchrist-Fisher, senior director latest leading retailer to GI to analyse the potential at CBRE Global Investors. appoint GCW to help drive investment and highlight Hammersmith Broadway ”We see the potential of its expansion plans. GCW the merits of the deal to the enjoys a very strong footfall investing in retail, particularly will be working to help the shopping centres at this point perfume retailer open stores in the cycle,” he adds. across the UK. GCW has been retained as Read more on page 6 sole agent, providing leasing, asset management and lease advisory services on all three LOOK OUT FOR... centres. 4 LATEST DEALS Read more on page 3 4 IPSWICH REBRAND MORE INFORMATION FROM 5 DREAMS OFFER [email protected] 6 NEW KFC CONCEPT GCW Jan 2015.indd 1 02/02/2015 15:32 Big in retail www.gcw.co.uk Landlords can help Simon Morris Director, GCW to keep shopping fun ■ The drum for the success Retailers are adapting well to the opportunities that online of online retailing is being banged so loudly it’s easy offers. Simon Morris argues that it’s time for landlords to do the to get overwhelmed by the same and respond to the demands of tenants by embracing the noise. But whilst the media relishes stories about the opportunities that multi-channel retailing offers. death of the high street the reality is much more complex. In the fevered debate, it’s instant experts in any product easy to forget that shopping so retailers can’t afford for is the most popular leisure their staff to know less. The activity in the UK. It’s a shared physical environment is activity for young and old. the opportunity for retailers There is undoubtedly a future to add value whether it is in physical retailing and for through service or upscaling a landlords who are concerned purchase. about the future of their Whilst high profile retailers assets, there’s a clear and such as John Lewis and obvious message. Customers Next make regular headlines will come to the shops if it for successfully linking continues to be fun, easy, and online and store sales, many useful. Retailers have moved retailers are following suit. on from a panic about the One of our newest clients, threat of the web to seeing JD Sport reports a clear link Many retailers already The Fragrance Shop is its potential and are looking between store openings and have a well-established clear that its approach to at the opportunities to create online sales multi-channel business and multichannel retailing fuels a thriving multi-channel are focussing on making the sales, with strong growth business in which physical to stay longer. It’s all about experience in store as good from customers using its click shops play a central role. getting the mix of retail and as possible. For them, it’s and collect service to place At a simple level it’s about leisure right for the modern not about competing with orders online and collect getting the basics right – a consumer. Retail landlords online sales, it’s about building in-store. It sees innovations pleasant environment in which need to put their efforts into on the possibilities opened for online shoppers as parallel to shop; good inexpensive creating environments that up by an online channel. to an expansion of its store parking or transport, easy provide a more positive overall Successful retailers know that portfolio. JD Sport can also access to collect deliveries experience than cannot be their environment needs to be clearly track a rise in online or return goods, a vibrant found online. Retailers are dynamic and engaging and sales when a new store opens leisure or food and beverage adapting and landlords need staff energised and focused. and the uplift is significantly element to encourage people to follow suit. Consumers can become higher in locations where the Aberdeen invests in Chippenham Retail Park ■ GCW bought Chippenham benefits from its location in surveyor Oli Horton. Retail Park for a client of Chippenham, a strong market “Chippenham Retail Park Aberdeen Asset Management town. The investment has an offers superb rental and from private development average weighted unexpired capital growth potential and company Foinavon for lease term of 8.5 years. The is located prominently in an £11.234 million. rent roll is £691,463 pa and area earmarked for future The 43,315 sq ft scheme the purchase reflects a net housing development,” comprises three retail initial yield of 5.82%. says Matthew Cunliffe, fund warehouses let to Wickes, “We are very pleased to be manager of Aberdeen Asset Pets At Home and B&M able to secure the purchase of Management. Bargains in a well-let, Chippenham for our client in prominent and well-configured what was a very competitive MORE INFORMATION FROM retail park. The park bidding situation,” says GCW [email protected] 2 FEBRUARY 2015 GCW Jan 2015.indd 2 02/02/2015 15:34 Big in retail www.gcw.co.uk coverage of JD stores is not as widespread. GCW scores shopping centre Landlords should also start to think about affordability of occupational costs, hatrick with investment deals understanding what retailers can afford and recognising ■ GCW takes on the letting that this differs by category agent responsibilities at three and by factors such as shopping centres recently whether they trade own brand acquired by CBRE Global or third party products. We Investors, following its work know that increasingly retailers advising the investor on the will not focus on simply where purchase of all three centres. a purchase is ultimately The appointments see made and that creates a GCW take on two centres complicated assessment of a based around London shop’s turnover in a multi- transport hubs, Fulham channel world. Broadway and Hammersmith Our message to landlords Broadway and a third, The Fulham Broadway boasts a strong food offer but serve is to understand and respond Ashley Centre in the affluent cinema and leisure centre slightly different markets. to the new world in which Surrey commuter town of alongside its retail offer Hammersmith Broadway is their retail tenants operate. Epsom. based around a ‘grab and go’ It is not about defending The 376,449 sq ft Ashley director Duncan Kite. food offer serving customers physical retailing from the Centre is anchored by House Both Fulham Broadway using the transport hub threat of the Internet but of Fraser alongside Marks & and Hammersmith Broadway and local offices. Fulham more about working with it. Spencer, H&M, Top Shop, are very busy, well-let Broadway has a more mature Retailers will start to expect Waitrose and New Look shopping centres with high offer with family dining linked landlords to offer more together with a further 56 occupancy.