GCW Newsletter September 2017 www.gcw.co.uk

Big in Retail

INNOVATIVE LANDLORDS ALTERNATIVES TEAM MOVES INTO BOOST TOWN CENTRES NEW MARKETS Vibrant shopping centres can help to transform towns p4 GCW’s Alternative Sectors team celebrates EALING SALES SECURED BARGATE QUARTER LAUNCH debut investment deal GCW completes successful GCW market Southampton’s and care home regeneration project p2 newest shopping scheme p2 purchase p3

GCW_Sept2017_all copy.indd 1 8/15/17 9:56 AM www.gcw.co.uk GCW secures duo of Ealing retail investment sales

investment short-term leases or leases station,” says Marc Mogull, ■ GCW has secured the sale with landlord redevelopment Managing Partner at Benson of two prime retail-led sites in breaks. GCW and Strutt & Elliot. Ealing town centre for Benson Parker acted jointly, marketing In a second deal in Ealing, Elliot. to a selected short-list of GCW acted for Benson Elliot In the first sale, British potential purchasers and to sell Central Buildings for £7 Land has purchased 10-40 subsequently agreeing terms million to Centrica Pension The Broadway, a freehold with British Land. Fund managed by LaSalle 70,000 sq ft site adjacent to Asset Management. Central the new Crossrail station, for “GCW has played Buildings is located next to £49 million. It comprises 21 10-40 The Broadway and high street retail units and a major role in the opposite Ealing Broadway borders British Land’s Ealing steady transformation station. GCW advised Benson Broadway W5 local retail Elliot on the purchase in involvement in the steady centre. The site was previously of Ealing town centre” 2014 and since then has transformation of Ealing town subject to a residential-led significantly improved the centre. planning application which “Having taken stewardship tenant line-up of the eight GCW was initially has now been withdrawn of the important Arcadia retail units with offices above. appointed by administrator enabling British Land to portfolio some four years ago, Lettings to retailers, including Grant Thornton to work on evaluate future opportunities. we’ve delivered a successful Five Guys, Starbucks and both the Arcadia Centre and GCW worked with Benson first phase of development Supercuts, have helped move 10-40 The Broadway alongside Elliot to prepare the parade of and identified the opportunity Zone A rents form £90 to London & Associated shops on 10-40 The Broadway on the Broadway site to create £175. Properties. Their brief as for redevelopment and at the a vibrant mixed use scheme These two significant sales letting agents and asset time of sale most are held on adjacent to the new Crossrail are the culmination of GCW’s managers was to add value so Southampton launches UBS sells in Swansea shopping centre revamp investment ■ GCW have sold a prime city Shopping centres centre retail block in Swansea ■ Bargate Quarter, a brand on behalf of UBS Asset new shopping scheme in Management’s Triton Fund. Southampton, has won the Edinburgh House go-ahead from planners and purchased the asset for £17.75 English Heritage. million, reflecting a net initial The redevelopment is yield of 9.5%. on the site of the former The 108,599 sq ft block sits Bargate Shopping Centre at the heart of Swansea city and GCW is now working centre’s prime retail pitch. It is with owner Tellon Capital to made up of 26 well-configured help deliver the 400,000 sq ft retail units with a hotel facing development which includes Oxford Street, Whitewalls and 70,000 sq ft of retail and Union Street. leisure space. With a current ground rent The design of the scheme of £200,618 pa, the retail involves opening up the retailing environment. positioned alongside the block will bring the new owner historic town walls and will GCW is marketing Bargate restored town wall. a net income of £1,803,006 include retail and restaurants Quarter and hopes to agree GCW acted for Tellon pa. Tenants include national at ground floor street level, as prelets in 2017 with the Capital on the purchase of the multiples and 17% of income well as apartments and student scheme due to open in Southampton site and also is secured to Lloyds TSB Bank accommodation at upper floor Summer 2019. It is aiming to acts as its letting agent on and Whitbread Properties for levels. A vibrant public realm attract aspirational brands Bedford’s Harper Centre. over 40 years. and retail pavilions will open focussed on fashion and up access to the town walls lifestyle to the 24 retail units MORE INFORMATION from MORE INFORMATION from [email protected] [email protected] creating an attractive including five retail pavilions

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GCW_Sept2017_all copy.indd 2 8/15/17 9:42 AM BIG IN RETAIL GCW delivers big store rent Deals rise in Brighton

professional ■ GCW has used its market expertise and local knowledge to achieve a rental increase at rent review on a big store in Brighton. The store on Weston Road is let to New Look and has seen a rent increase Steam Rock Capital has sold for a property let to Wilko £600,000 to £617,500 pa. GCW and Argos on Market Drayton’s Frogmore Road for £3.595 negotiated with the tenant, million with an initial yield of 9.75 %. The two retail units acting for Royal London Asset are let to Argos and Wilko with leases expiring in 2021 and Management in the rent review 2026 respectively. GCW achieved a strong sale by pricing that the sites could be sold. with 10 years left on the lease. the investment attractively and creating a competitive The sale of both properties to “The rental uplift was bidding situation. Benson Elliot were concluded achieved through our ongoing late in 2012. work in Brighton. The increase JoJo Maman Bebe continues its steady expansion with GCW then acted for Benson is important for the landlord the opening of a 1,000 sq ft ground floor store in Whitely. Elliot on the redevelopment in the long-term and delivered Other new openings for the GCW client include Lymington of the Arcadia Centre and its a significant uplift in capital in 1,000 sq ft ground floor at £33,000 pa; Wanstead High subsequent sale to Pramerica value,” says GCW director Street at £37,000 pa in 1,200 sq ft; and Morningside, for £37.4 million. Clive Gillingwater. Edinburgh at £21,500 pa in a 700 sq ft ground floor unit. MORE INFORMATION from MORE INFORMATION from All stores are on 10 year leases. [email protected] [email protected] The Cornish Bakery opens in three new tourist-focussed locations including Totnes in a 1,400 sq ft ground floor unit on a 10 year lease at £38,500 pa, in West Bay in a 1,300 sq ft store with the assignment of a new reversionary lease at £15,000 pa and in Bude where it takes the assignment of a lease in a 1,200 sq ft store at £20,000 pa.

GCW agreed the purchase of a prime retail investment in Bury St Edmunds for a private investor at £2.2 million reflecting a net initial yield of 7.05%. The property on Buttermarket is let to Holland & Barrett and Shoe Zone GCW secures healthcare site with a WAULT of 5 years. Alternative Sectors residential developers,” says A prime property in central Ashford, has been ■ GCW’s Alternative Sectors GCW associate director Tim purchased by a GCW client for £2.85 million reflecting a team has acquired its first Ashe. net initial yield of 6.60%. The well-configured 27,000 sq healthcare site for Hamberley GCW has also agreed ft store occupies a prominent corner position on the High Developments. terms on a second site for Street and is let to Boots the Chemist until October 2025 Hamberley acquired the Hamberley in Basingstoke. at a rebased rent. 0.9 acre site on the Orpington The deal is subject to Bypass in Sevenoaks. The planning consent for a care Sticky Sisters is the latest operator to open on the site was previously occupied home and retirement living leisure-focussed, first floor of the Harvey Centre in by a car showroom. It has scheme. Harlow. GCW agreed the letting of a 2,500 sq ft unit in a obtained consent to build a GCW is working with prime location opposite Cineworld at £50,000 pa on a 15 60 bed private care home at Hamberley Development year lease. the site. across the South East to “We are pleased to find sites of 0.9 to 3 acres in Long-standing GCW client Specsavers takes a new store complete this first acquisition affluent suburbs with road on Central Road, Worcester Park on a 10 year lease with for Hamberley. It is difficult frontages. a tenant break in the fifth year. The 1,500 sq ft ground to secure sites in the South floor unit is let at £25,000 pa with a capital contribution. East with a shortage of land MORE INFORMATION from [email protected] of £15,000. and stiff competition from

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Opinion

mproving town centres is all about creating a sense of place so that the community has ownership over where CREATING it lives, works and spends its leisure time. It’s all based on the simple dynamic that if a town centre is more VIBRANT TOWN attractiveI and vibrant then people will visit more, hang around more and shop more. GCW is working with a range of clients who understand that shopping centres can and CENTRES OFFERS should have a central role in helping to create that sense of place. The schemes are often the dominant part of the town centre and what KEY TO SUCCESS they do has a huge influence on the wider town. Shopping centre landlords have a clear opportunity to help “Creating a sense of place can involve pulling in things that used to be there such as cinemas, rejuvenate town centres through innovative ideas and restaurants and gyms plus hotels, creches and health facilities. But it’s about much more than partnerships with local authorities. GCW’s shopping centre adding facilities to increase footfall,” says GCW team is helping owners to capitalise on the possibilities director Duncan Kite. “Shopping centre owners need to pay as much attention to attracting people and creating vibrancy as they do to focusing on the underlying financial performance. It’s about taking the blinkers off and thinking outside what you would expect a shopping centre to be,” he adds.

vibrancy is key Kite argues that too many shopping centre investors concentrate solely on the spreadsheet and where numbers will show growth. They should be equally driven by softer issues that will create vibrancy. “At GCW we believe that we can be the promoter and agitator of ideas enabling owners and landlords to create the opportunity to improve and enhance their centres; attracting the wider community to regularly visit town centres. We know that working with them on a broader picture will pay real dividends,” adds Kite. Edmonton Green is a great example of this approach where GCW client St Modwen has worked steadily on a major mixed-use The transformed Market Place It was created with the local community in redevelopment project with a firm eye on the shopping centre helped to mind. Another shining example can be seen in community. revitalise Bolton Altrincham where the local authority put the “Edmonton Green has been transformed running of the town’s market out to tender. since we acquired the centre in 1999. The The resulting refurbishment of the traditional progressive redevelopment has meant the market has played a huge role in breathing life centre has become the heart of the town. back into the town centre. The performance of the centre has improved significantly and has had a “We can be the Innovative ideas really positive impact on the local “You can recycle all these kinds of ideas into a community,” said Rupert Wood, promoter and agitator shopping centre environment. We are about property director at St Modwen. of ideas enabling owners to follow that lead in one London shopping Kite points to the example of centre with the creation of a 15,000 sq ft food Roof East, a council initiative at and landlords to create the market, providing a dynamic and diverse food Stratford Centre where GCW acts offer for shoppers and users of the transport as letting agent. It runs a seasonal opportunity to improve hub adjacent . This is based on the success leisure park on the top deck of the and enhance their of continental markets such as Mercato Centre car park with an urban park, Metropolitano in Elephant & Castle as well rooftop bar and an open-air cinema. centres“ as experiences further afield like San Anton,

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Opinion BIG IN RETAIL

Madrid,” says Kite. Although local authorities rarely get involved Alternatives team CREATING in shopping centre development, GCW director David Gooch argues that they will when encouraged. He points to GCW’s work in secures investment Windsor, King’s Lynn, Feltham and Edmonton Alternative sectors Day Nursery and Pre-school VIBRANT TOWN ■ where partnerships with local authorities have GCW’s Alternative Sectors this month. It is located on produced tangible benefits. team has secured its first Wilkinson Way. “Our work in Windsor on the King Edwards investment transaction The sale marks the first CENTRES OFFERS Court redevelopment was based on a advising Stax Nurseries on alternative sector investment partnership with the local council and included the sale of a purpose built deal since GCW’s dedicated a hotel, expanded retail and improved public nursery in Farnham, . team was formally launched KEY TO SUCCESS realm. It was ground breaking at the time and The sale sees Stax earlier in the year. The there’s no doubt that the partnership had a Nurseries agree the sale of the team works with a range of lasting impact on the how the local community 6,100 sq ft nursery to Alpha specialist operators such view Windsor,” says Gooch. Real Capital for £2.11 million, as gyms, nurseries and care reflecting a net initial yield homes which vie for retail council partnerships of 5.02%. The investment sites throughout the UK. More recently in another GCW project in provides a rent of £112,500 The team acts for nursery King’s Lynn, a partnership between the local pa on a 25 year lease, with a operator Busy Bees finding authority and the owners of the Vancouver tenant break clause at year 15. and securing potential sites Centre is enabling a major redevelopment of The nursey was purpose across the UK. part of the town centre. built for tenant Bright MORE INFORMATION from “We are excited to be supporting the Horizons Family Solutions, [email protected] development of the Vancouver Quarter. It will which opened its Farnham be the catalyst to regenerate this part of the town centre, building on our investments in the bus station, car parks and heritage assets. An improved shopping offer will make a real difference to King’s Lynn in terms of its vibrancy,” says Borough Council of King’s Lynn and West Norfolk Councillor Alistair Beales GCW’s work in Bolton on Market Place for Moorgarth Group is one example of a partnership between a council and shopping centre owner that has revitalised a struggling town. Moorgarth is now bringing the same approach to Reading’s Broad Street Mall. It plans a major investment to add residential units and to open up the basement to include a Waitrose backs Epsom street-food focused market. “Our plans for Broad Street Mall will help centre performance to create a sense of place for the residents of Reading. They already shop at the centre but Shopping centres Vodafone, Thomas Cook has we want them to do more when they come ■ GCW has agreed terms with also been completed and the here and stay for longer,” says Gary Lewis, Waitrose to regear its lease centre is now fully let. Pret a Moorgarth Group, Managing Director. at Epsom’s Ashley Centre on Manger is due to open later In one of GCW’s newest projects in Barking, behalf of owners CBRE GI. this year. client Benson Elliot has won planning consent In the latest illustration “Tenants are keen to stay for a redevelopment of Vicarage Fields of the strong trading even though rents are rising, shopping centre and its immediate vicinity performance at the centre, which demonstrates that including retail, restaurants, a cinema, a Waitrose has agreed a lease is a highly new primary school and health centre. It for a further 10 years from sustainable location. We are understands that the development can be a September 2018. The deal very pleased that our asset real catalyst for change in Barking. sees the rent rise to £375,000 management programme “It provides a fantastic opportunity to pa on the 29,500 sq ft store. has driven results, ahead of transform the town centre. We value the Waitrose will also undertake the original forecast. Other support of the local authority in creating a £3 million refurbishment of exciting developments will see deliverable plans and believe that these can the store. the asset’s performance kick enable the town to make the most of its A comprehensive lease on further in due course,” says excellent location,” says Benson Elliot director renewal programme GCW director Duncan Kite. of retail Peter Cornforth. undertaken by GCW director Lisa Manley including MORE INFORMATION from MORE INFORMATION from d [email protected] [email protected] Starbucks, Body Shop,

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GCW_Sept2017_all copy.indd 5 8/15/17 9:45 AM www.gcw.co.uk New brands travel to Hammersmith

Leisure retailer, currently trading from “POD is yet another ■ GCW has agreed a number 25 stores. POD took a new exciting brand that we of new lettings to food 10 year lease on the newly know will be a huge and beverage retailers at created unit which is now success in Hammersmith, Hammersmith Broadway open and trading. replacing some tired out shopping centre. This follows lettings to dated brands that had been Acting on behalf of the Leon, Barburrito, Hema, Cafe underperforming in the landlord, CBRE GI, GCW De Nata and Pocket Shop scheme,” says GCW director agreed to let Units 10B and and continues the trend of Chris Hovington. 11 which will be combined to attracting new modern fascias create a new 1,100 sq ft unit into one of London’s busiest MORE INFORMATION from [email protected] for POD, the healthy food transport hubs. Plymouth attracts competitive bidders investment ■ GCW has agreed a retail warehouse investment sale in Plymouth for CBRE GI to cluster of out-of-town retail thru unit let to McDonalds within a week had six offers. Custodian Capital, at £7.487 warehouses, situated on the until 2031. It ensured we achieved a million showing a net initial principle route into Plymouth “We knew that the strong sales prices,” says yield of 6.73%. city centre. It includes underlying fundamentals GCW director Fiona Nichols. The property forms part warehouses held on new were strong and that there of Coypod Retail Park, a first leases and let to ScS and Oak would be significant interest. MORE INFORMATION from [email protected] generation retail park with a Furniture Land and a drive We went to best bids and

GCW bags two charity triumphs ■ GCW emerged triumphant from physical and mental challenges and Pike at 978m and Snowdon at 1,085m. the annual retail property charity teams of seven property professionals GCW’s team completed the Three event, the Elifar Challenge, just weeks battle it out all day for the top prize. Peaks in under 24 hours helped hugely before setting off on an even tougher Three weeks later a team of nine by driver Iain Coxon of BLB Surveyors. challenge raising money for the same surveyors from GCW raised a fantastic Thanks to sponsorship from friends, charity. £17,500 for Elifar taking on the Three clients and industry peers they raised GCW won the Elifar Challenge for Peaks Challenge, trekking the highest a huge sum of money which will go the second time in the past three years, mountains in Scotland, and directly to Elifar to buy much needed competing against 24 teams of industry Wales. The climbs took the team to the equipment for disabled children and peers. The Elifar Challenge is a mix of peak of Ben Nevis at 1,345m, Scafell young adults.

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GCW_Sept2017_all copy.indd 6 8/15/17 9:46 AM BIG IN RETAIL Deals GCW has agreed the first letting at The Orchards, Haywards Heath since the shopping centre was purchased by Mid Sussex District Council late last year. Cards Direct opens a 1,600 sq ft unit on a 10 year lease at £43,000 pa.

Maidenhead’s Nicholsons Shopping Centre has added a new brand to its tenant line-up. Outdoor store, Trespass takes King’s Lynn signs fashion a five year lease on a turnover rent of 15% of sales over flagship for retail unit £250,000 for a 1,331 sq ft unit. shopping centres store for H&M on a 15 year In a GCW deal, Shoe Zone ■ Fashion retailer H&M will lease plus four other retail opens in Preston’s Fishergate open a flagship store in King’s units. Centre on a five year lease on Lynn’s Vancouver Centre The redevelopment will a 1,746 sq ft unit at a stepped following agreement with the provide a boost to both the rent rising to £45,000 pa Council to regear the head centre and the town and with 12 months’ rent free. lease on the centre. GCW has begun marketing Elsewhere in the centre, Work started last month the four new units. Glamour Forever takes a 10 year lease on a 1,494 sq ft unit on the redevelopment of the at £35,000 pa with six months rent free. former Beales department MORE INFORMATION from [email protected] store to create a 20,000 sq ft GCW has agreed a significant letting at the Quedam Centre in Yeovil for owner Benson Elliot. Plus size, women’s clothing store, Yours opens in a 2,107 sq ft unit on a five year lease at £65,000 pa with three months rent free.

GCW has agreed two new high street stores for KFC in London boroughs both on 20 year leases. KFC relocates to larger premises in Hounslow in a 3,200 sq ft unit at £100,000 pa with a landlord contribution to the fit out costs; and opens on Clarence Street, Kingston in a 1,906 sq ft unit at £75,000 pa with 9 months rent free. Moxy goes to Birmingham Fashion retailers sign up Alternative Sectors deal is subject to planning. ■ Hotel developer, Vastint The proposed development to Reading opportunities has agreed the purchase of a will accommodate a 225-bed site in Birmingham to build Moxy hotel which hopes to shopping centres unit. Plus size women’s fashion its latest Moxy hotel. open in 2019. ■ Two new fashion retailers store, Yours Clothing moves to GCW identified the site, This is the forth site are moving to Reading’s Reading to open a 1,800 sq ft outside one of the main acquired for the hotel Broad Street Mall as GCW unit on ground floor on a five entrances to the NEC in developer by GCW following continues its successful year lease at £75,000 pa. Birmingham and opposite the those in Heathrow, Bristol role as letting agents on the GCW has advised Genting Arena, and agreed and Southampton. It is shopping centre. Moorgarth on Broad Street the acquisition on behalf of Moxy’s 12th hotel as the Men’s fashion store Brother Mall since it purchased the Vastint. The 125 year lease brand continues its steady to Brother relocates from centre in 2015. was acquired for £3.5 million expansion. elsewhere in Reading on a five with a peppercorn rent. year lease at £62,500 pa plus a MORE INFORMATION from The site has outline MORE INFORMATION from [email protected] [email protected] turnover top up in a 2,300 sq ft consent for a hotel and the

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Q&A Chris Gilchrist-Fisher is a senior director at CBRE Global Investors. He talks about his role as a fund manager and his work with GCW’s investment and shopping centre teams. Big in Retail How did you arrive at CBRE GI? And the hardest part? KE Y CONTACTS ■ A conventional route, training at Kings ■ When an investment doesn’t perform in Sturge and moving on to BNP Paribas, has the way you anticipated for reasons you Shopping Centre served me well. My move to CBRE GI was couldn’t have foreseen. Fortunately this about being closer to the property assets and doesn’t happen very often but clients do Duncan Kite staying involved in a project for the long-term. put their trust in us so we need to get the David Gooch decisions right. Describe your current role? Nick Warr ■ I look after international capital wanting What’s your link with GCW? Chris Hovington to buy assets in the UK. I’ve done it for four GCW director Fiona Nichols has advised CBRE Phil Micheal years following six years at CBRE GI acting for GI for a long time but the new relationship Phil Fishwick domestic investors. The international on shopping centres has really clients are looking at larger lot moved the partnership forward. Rupert Rudkin sizes and often complete We purchased Epsom, Archie Morris one-off deals so it’s a Hammersmith and Fulham Lisa Manley different dynamic. centre on the same day and GCW now act as What’s the best thing letting agents on all High Street about your current three. Simon Morris role? Gareth Storer ■ Travel is definitely Why do you work a highlight with with GCW? Patrick Bates regular trips to Europe ■ Duncan Kite and the Adam Cohen and Malaysia and Kuala shopping centre team Lumpur is a favourite. It’s bring lots of fun to what we Investment fascinating dealing with people do and they do a fabulous job. Fiona Nichols who don’t know much about the UK We value the overview and services market and need a lot of guidance. on offer and they act and think as asset James Pearson managers. Oli Horton And the toughest part? Alex Matthews ■ Jet lag. What’s your favourite property on the Monopoly board? What’s the most satisfying deal you’ve ■ I always buy the stations and our success Lease Advisory done? in Hammersmith Broadway shows how well Clive Gillingwater ■ Our purchase of Hammersmith Broadway that works in real life. Alex Ash and Fulham Broadway shopping centres in 2015. GCW advised us on the off-market Tell us something people might not Alternative Sectors deal. It is one area of retail where supply is know limited and demand has been phenomenal. ■ I once had a drink with Clint Eastwood. He Simon Horner It’s turned out well with rental growth far was sitting alone at the bar in the Red Lion Tim Ashe outstripping expectations. on Waverton Street and joined us for a few pints. Consultant What’s the best thing about being a fund manager? What do you have on your desk? Keith Whale ■ Seeing a project through to completion. ■ Virtually nothing, we now hot desk with a It’s satisfying to find assets that you know clear desk policy every evening. www.gcw.uk will meet a client’s criteria, assemble a team, 020 7408 0030 manage the process all the way through and What’s your favourite saying? then see the assets perform. It’s much more ■ The journey is equally as important as the complex than agreeing straightforward deals. destination.

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