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, in , 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 . 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 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, 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 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]

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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. The 67,846 sq ft into the cinema. and this might vary from shops, four kiosks and an Hammersmith Broadway is “In Fulham we hope to IT services to ease online office building. The latest deal fully let with over 70 tenants introduce a new fashion ordering in store through to at the centre will see Metro including Tesco, Boots and anchor and to create one more flexible opening hours Bank move to Epsom. McDonald’s and generates or two new restaurants. In for returns and collections “The Ashley Centre offers an annual rental income of Hammersmith the initial focus of goods. The most-forward an exciting opportunity and £5.4 million. The 195,703 sq will be on reinvigorating the thinking landlords are we think there is lots of ft, Fulham Broadway has 43 look and feel and brightening already talking to tenants potential for the centre with tenants who are predominately up the environment,” adds and technology suppliers to pent up demand. The centre national multiple retailers Kite. innovate for the future. The is fully occupied but there are and food operators including GCW will also provide the internet can be the driver for obvious brands not present Sainsbury’s, Wilkinson, Boots professional services advice physical retailing success not and so the opportunity to and Starbucks. It boasts a on the three centres. the death knell that some attract new tenants in the multi-screen Vue cinema and continue to predict. future offers lots of potential a David Lloyd leisure centre. MORE INFORMATION FROM for rental growth,” says GCW Both centres have a [email protected] MORE INFORMATION FROM [email protected] GCW extends Orchard Street link

■ GCW takes on the role of Ernest Jones. Metro Bank has Duncan Kite. letting agent on the St Anns just signed a deal to open in This is the third scheme Shopping Centre in Harrow as the centre. Improvements to where GCW has been it expands its partnership with the look and feel of the centre appointed as letting agent Orchard Street Investment are also under consideration. for Orchard Street. It was Management. “This latest appointment is appointed on Old George St Anns is a 280,000 sq an endorsement of our work Mall in Salisbury in 2013 ft shopping centre adjacent for Orchard Street in Salisbury following its successful to the town’s main transport and . We have a on-going partnership with hub offering a mix of fashion strong understanding of the Orchard Street on the plus convenience retailing. London suburbs and look in It is anchored by Marks forward to helping to extend Portsmouth. & Spencer, Primark and the tenant mix in the centre BHS with other key tenants whilst enhancing the fashion MORE INFORMATION FROM including H&M, Clarks and offer,” says GCW director [email protected]

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GCW Jan 2015.indd 3 02/02/2015 15:35 Big in retail www.gcw.co.uk Maidstone signs up to GCW DEALS ■ Fremlin Walk in Maidstone is the fifth recent addition to ✱ GCW has agreed three GCW’s portfolio of shopping new deals for long-standing centre clients following the client JD Sport. The retailer centre’s purchase by M&G moves to a new 2,000 Real Estate from Legal & sq ft store on London’s General Property. Walworth Road at £85,000 The 350,000 sq ft open- pa and a 4,100 sq ft store in air scheme is anchored by a Palace Exchange, Enfield 100,000 sq ft House of Fraser at £155,000 pa, both on alongside H&M, Zara and Top 10 year leases. In St Ann’s Shop. It is the leading fashion Road, Harrow, JD Sport expands into the shop next destination in the town and GCW is working to secure a new fashion tenant for Maidstone door adding 1,400 sq ft to recent tenants moving to the its existing unit at £90,000 centre include Fat Face and “This is a very well working partnership we have pa on a 10 year lease. restaurant chains Bill’s and established 10 year old centre established in Cambridge’s Pret a Manger. with no physical room for Grafton Centre,” says Scott Retailer, Trespass moves to GCW’s immediate task is expansion. Our job is to make Linard M&G Real Estate a 1,800 sq ft unit in St Marks to secure a fashion tenant for sure we get all the ingredients leasing director. Place shopping centre in the scheme in a newly vacant just right to make it is as GCW will act as joint Newark-on-Trent on a 12,000 sq ft unit. In the longer successful as possible,” says letting agent with Cushman & five year lease at £41,250 term work will focus on further GCW director Duncan Kite. Wakefield who acted for M&G pa. This is GCW’s first deal improving the tenant mix, “We look forward to on the purchase of the centre. since being appointed letting expanding the catering offer working with GCW on a agent on the scheme by and improving the look and second scheme and to MORE INFORMATION FROM owner, the Topland Group feel of the centre. replicating the successful [email protected] earlier last year.

Canada Life Prestigic invests in central goes off-market Wakefield location ■ GCW has completed an off- ■ GCW client Prestigic Centre in a prominent corner French bakery, Paul has market deal for Canada Life, Holdings has purchased position, with high volumes of opened its first store outside buying a prime high street two adjoining shops at 2/4 pedestrian footfall. London. In a deal agreed retail property on Southgate Kirkgate, Wakefield for £1.77 “This investment is in line by GCW, it takes the Street, Bath. million at a net initial yield of with our current policy of assignment of a lease at The deal saw Canada Life 8.4%. buying well-located high 138 High Street Oxford. The buy the 2,915 sq ft unit for The three-storey premises street retail units offering unit comprises 2,290 sq ft £2.885 million at a net initial provide 8,640 sq ft of retail yields in excess of 8% unit at £95,000 pa. GCW is yield of 5%. The property, in accommodation, currently and compliments recent working with Paul to help it Bath’s prime trading pitch and let to Santander and acquisitions we have expand in a variety of other opposite the new Southgate Waterstones with a weighted undertaken in Aberdeen, locations outside London. Shopping Centre, is let to O2 average unexpired lease term Torquay, Bristol and in a straight assignment of of 7.5 years. The current Hereford,” says Phil Dawes Jeweller Swarovski takes a lease from Phones 4u and rent roll is £157,700 pa. The director of Prestigic Holdings. a 515 sq ft unit at 35a King there are eight years left on units are well-located and Edward Court Windsor on a the lease. adjacent to the principal MORE INFORMATION FROM 10 year lease with a tenant “The prominent location entrance into The Ridings [email protected] break at five years at £45,000 offers strong rental growth pa. GCW acted for owner potential. We were pleased SWIPPT who purchased the to be able to use our market scheme last year. knowledge to complete Card retailer Clintons takes a successful off-market a 1,237 sq ft unit in The transaction,” says GCW Spires, Barnet at a headline surveyor Oli Horton. rent of £46,888 pa. Clintons returns to The Spires MORE INFORMATION FROM following administration. [email protected]

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GCW Jan 2015.indd 4 02/02/2015 15:36 Big in retail www.gcw.co.uk GCW expands Ipswich invests in major JoJo offering upgrade and rebranding ■ Long-standing client JoJo Maman Bebe has ■ Tower Ramparts Shopping appointed GCW to carry out Centre in Ipswich is the professional work on a embarking on a £4 million number of its stores. makeover as owner La Salle In the first tranche, GCW Investment Management has just been instructed to invests in a rebranding and handle the lease renewals refurbishment programme. on three stores in Kingston The centre will be upon Thames, London’s rebranded as Sailmakers to Westbourne Grove and reflect the town’s maritime Marlow. heritage and the shopping “We are pleased to be centre’s location in the town expanding the services we leading to the waterfront. The offer to JoJo Maman Bebe. redevelopment will include As rental growth comes back remodelling the centre’s two into the market, negotiations entrances, facing Tavern more mainstream fashion developments saw the with landlords will be more Street and the bus station. retailers. The redevelopment reconfiguration of the former complex and we are confident Tower Ramparts has and general refurbishment Littlewoods store to create we can use our expertise to made huge steps forwards will be the catalyst for further two large retail units paving create positive results,” says and footfall has increased to lettings and the recent deal the way for lettings to Iceland GCW director Lisa Manley. historic levels since La Salle with Top Shop will help to and Poundland last year. GCW has worked with purchased the centre in 2011. attract other leading fashion Work is scheduled JoJo Maman Bebe since Top Man/Top Shop is the operators,” says GCW to commence on the 2005. It actively manages latest leading retailer to show director Nick Warr. redevelopment in February the retailer’s portfolio of confidence in the scheme, GCW secured a deal with and is due to be completed stores across the UK which agreeing a regeared lease for fashion retailer River Island in in July. has grown from 2 to 61 10 years and committing to a 2013 to take a new flagship boutiques including stores refit of its 7,000 sq ft store. store on the entrance to MORE INFORMATION FROM in Ireland during the 10 year “We are looking to attract the shopping centre. Other [email protected] association.

MORE INFORMATION FROM Taunton sale achieves sharp yield [email protected] ■ The sale of a £3.12 million. The parade is but provides an attractive neighbourhood parade in anchored around a Co-op yield. The good demand Taunton suburb, Norton supermarket and a medical helped us to achieve one of Fitzwarren has broken the 7% centre both let for 14 years the strongest yields yet in this yield barrier. alongside some smaller retail sector,” says GCW director GCW agreed the deal to sell and residential units. James Pearson. the well-let parade to investor “There is clear demand for Evolve Estates on behalf of this type of asset which is MORE INFORMATION FROM vendors, Corum Advisors for perceived to be very secure [email protected] Dreams prepares to share space ■ Bed retailer Dreams concessions. GCW is now from 170 locations on retail is hoping to attract working with Dreams to parks and busy arterial routes complimentary retailers to extend the idea and source throughout the UK. Each of take space within its stores on suitable retailers to commit to these 170 sites is in the right short-term concessions. 12 month to 3 year terms on location for Dreams but many The principle of an all-inclusive basis in space of the stores have larger shop sharing space has from 500 to 5,000 sq ft. floor areas than it needs. worked successfully with Dreams has emerged from bedroom furniture retailer administration with venture MORE INFORMATION FROM Sharps operating from 10 capital backers and trades [email protected]

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GCW Jan 2015.indd 5 02/02/2015 15:36 Big in retail www.gcw.co.uk GCW signs The Fragrance Shop

■ GCW has been appointed “We’re really pleased to and annual sales climbed by by leading UK perfume retailer have been appointed to work 11.2% to £90.1 million in the The Fragrance Shop to help with The Fragrance Shop. It is year to end March 2014. it expand further with a raft of a growing, acquisitive retailer “We are continually looking new stores opening this year. with a well-known brand at sites across the UK to The fast-expanding retailer and a great concept. We are expand our store portfolio has 171 stores across the well placed to help it find a and have seen this provide Regeneration UK. It opened 18 stores last range of new stores in key a growth in sales,” says The year and this year will look locations,” says GCW director Fragrance Shop managing skills in for up to 25 new properties Simon Morris. director, Pete King. across the UK, ideally 500- The retailer enjoyed a Greenwich 1,000 sq ft units in covered positive Christmas sales MORE INFORMATION FROM ■ GCW has been appointed shopping centres. period with sales up 11.8% [email protected] by developer Hadley Mace to help deliver the commercial element of a major mixed-use FUN ON THE BUS development underway in Greenwich. ■ Celebrating 25 years Greenwich Square is an in business proved too exciting new residential area much for some of GCW’s created around a vibrant surveyors on their trip to public square, including Chamonix before Christmas. leisure facilities and a range of GCW’s 28 surveyors and retail amenities. support staff enjoyed two The development includes days in the snow to mark the a leisure centre, library and birthday in style. language school on site and commercial tenants include a pharmacist, dentist, hairdresser and a Sainsbury’s KFC trials new urban dining concept Local. ■ GCW has teamed up with testing the concept with a main thoroughfares. GCW will use its fast-food retailer KFC to help store in Bracknell and has KFC hopes to have four established skills in mixed- find suitable sites to trial a appointed GCW as preferred or five new-style outlets up use urban regeneration to new up-market urban dining agents to help it find more and running this year to be help attract a range of new concept. suitable sites within central able to effectively trial a new tenants. This will include KFC hopes to use a new London. menu and assess customer more service tenants to interior design and refined GCW will search for response to the new compliment the existing line- menu to step into the casual properties of 850 to 1,500 concept. up plus a food offer including dining market alongside its sq ft and has completed restaurants and a coffee shop successful operations as a a canvassing exercise of MORE INFORMATION FROM with outside seating around fast-food retailer. It is already suitable locations just off [email protected] the public space. “We know how to find the Our People Big in Retail right commercial tenants to fit in with residential schemes. GCW is a market-leading David Gooch 020 7647 4808 Simon Morris 020 7647 4802 This project is about creating [email protected] retail property consultancy, [email protected] a whole new neighbourhood Jocelyn Holmes 020 7647 4814 Fiona Nichols 020 7647 4809 offering a nationwide [email protected] [email protected] and there is a real opportunity service. Simon Horner 020 7647 4807 James Pearson 020 7647 4817 here for retailers to access a [email protected] [email protected] huge local catchment,” says Tim Ashe 020 7647 4828 Oliver Horton 020 7647 4806 Alan Rawlins 020 7647 4820 GCW director Simon Horner. [email protected] [email protected] [email protected] GCW builds on its previous Harry Barnett 020 7647 4827 Chris Hovington 020 7647 4805 Rupert Rudkin 020 7647 4826 [email protected] [email protected] [email protected] work with the regeneration Patrick Bates 020 7647 4810 Duncan Kite 020 7647 4804 Gareth Storer 020 7647 4825 and residential developer the [email protected] [email protected] [email protected] Hadley Group, who is working Steve Brown 020 7647 4823 Lisa Manley 020 7647 4803 Nick Warr 020 7647 4818 with builder Mace on this [email protected] [email protected] [email protected] James Crittenden 020 7647 4816 Philippe Micheal 020 7647 4815 Harry Wildsmith 020 7647 4822 project. [email protected] [email protected] [email protected] Clive Gillingwater 020 7647 4801 Ruth Miley 020 7647 4819 Keith Whale 020 7647 4800 MORE INFORMATION FROM [email protected] [email protected] [email protected] [email protected]

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