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RETAIL WAREHOUSING & FOODSTORES TRACK RECORD
DETAILED KNOWLEDGE. WEALTH OF EXPERIENCE. ALL RETAIL.
Formally established five years ago, Knight Frank’s Out of Town Retail Capital Markets team is led by Andrew McGregor & Dominic Walton.
Both individuals have more than 30 years’ experience in the sector, both in investment and crucially, occupational expertise. They oversee the team’s execution of one shared goal: to provide the best advice possible.
INTRODUCTION
ANDREW MCGREGORT +44 20 7861 1531
DOM WALTONT +44 20 7861 5191
Malvern Shopping Park - 135,658 sq ft
“AT LONDON METRIC OUR CUSTOMER FOCUS HELPS CREATE VALUE FOR ALL. THIS IS AN APPROACH THAT KNIGHT FRANK SHARE WITH US AND IT CREATES A REAL POINT OF DIFFERENCE!”
Andrew JonesLondon Metric
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OUR EXPERTISE
The Out of Town Retail Capital Markets team provides the following services:
• Purchase advice – backed up by full tenant audit, pricing and cash flow analysis, legal due diligence and a comprehensive purchase report.
• Competitive sales advice – a well-researched view on price, before embarking on the most effective and aggressive method of achieving best value.
• Asset review - our in-depth knowledge of the occupational market enables us to provide comprehensive and often speculative asset reviews. Unlike most investment teams, we have direct relationships with tenants, which enables us to fully understand their trade motives and requirements. Our advice is therefore able to give a true insight into the opportunities and/or threats posed by the occupational market and its likely impact on the scheme.
• Debt advisory - our dedicated debt advisory team enables us to provide best-in-class advice on matters around the cost and suitability of debt; from assessing the impact and suitability of leverage during the purchasing process to the merit of stapling a debt proposal as part of the sales process.
• Research - Stephen Springham leads our dedicated retail research capability. With 15 years’ experience in the sector, Stephen offers a unique insight into the macro and micro economic, demographic and consumer issues affecting tenants, and the overall impact on the investment market.
• Professional - our Out of Town Retail Valuation team is one of the most active and professional in the sector. Headed by Graham Spoor, the team counts UK Institutions, REITS and Propcos as core portfolio clients. Critically, the team works closely with the OOT Retail Capital Markets team to stay fully informed of market conditions while remaining within the confidential remits of its work.
• Lease advisory - as part of our role as comprehensive advisers to owners of Out of Town retail assets, we will always consider the value and merit of lease re-gear / re-structure. We are also able to advise and negotiate lease renewal / re-gear for the occupier and have undertaken several transactions for major clients, including the likes of Wickes.
Whilst the detailed knowledge and advice is predominately London based, we recognise the local expertise offered by our regional offices and also the increasing need to access new sources of global money. We therefore have a strong relationship with our Global Desk in London and the key investment hubs in the US, Europe, the Middle East and Asia.
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INVESTMENT TRANSACTIONS
OUT OF TOWN RETAIL PARKS
HOUGH RETAIL PARK,STAFFORD
DATE :: Sold March 2016
TENURE :: Freehold
CLIENT :: Albemarle Stafford LLP
SIZE :: 101,799 sq ft
PRICE :: £21,050,000
NET INITIAL YIELD :: 6.77%
MALVERN SHOPPING PARK,MALVERN
DATE :: Purchased October 2017
TENURE :: Freehold
CLIENT :: Halsey Garton Property Investments
SIZE :: 135,658 sq ft
PRICE :: £75,000,000
NET INITIAL YIELD :: 5.46%
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“WE WORKED WITH KNIGHT FRANK ON OUR ACQUISITION OF MALVERN SHOPPING PARK. WE WEREIMPRESSED WITH THEIR EXCELLENT SERVICE - THEIR EXPERIENCE, KNOWLEDGE AND DOGMATIC
APPROACH ENSURED THAT ALL PARTIES WERE HAPPY WITH THE POSITIVE RESULT”
Peter HallHalsey Garton Property Investments
INVESTMENT TRANSACTIONS
OUT OF TOWN RETAIL PARKS
TYNE VALLEY RETAIL PARK,HEXHAM
LADYBAY RETAIL PARK,NOTTINGHAM
CENTRAL DRIVE,MORECOMBE
DATE :: Sold October 2016
TENURE :: Freehold
CLIENT :: Network Rail
SIZE :: 38,103 sq ft
PRICE :: £7,387,500
NET INITIAL YIELD :: 6.61%
DATE :: Sold March 2017
TENURE :: Freehold
CLIENT :: Columbia Threadneedle
SIZE :: 105,524 sq ft
PRICE :: £24,200,200
NET INITIAL YIELD :: 6.25%
DATE :: Sold January 2017
TENURE :: Freehold
CLIENT :: Wm Morrison plc
SIZE :: 82,629 sq ft
PRICE :: £12,000,000
NET INITIAL YIELD :: 7.37%
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INVESTMENT TRANSACTIONS
FOODSTORES
ASDA, LEWISHAM
WAITROSE, MENAI BRIDGE
TESCO, WELLING AND SAINSBURY’S,BISHOP AUCKLAND
DATE :: Sold July 2016
TENURE :: Freehold
CLIENT :: Aviva
TESCO, WELLING NET INITIAL YIELD :: 6.00%
SAINSBURY'S, BISHOP AUCKLAND NET INITIAL YIELD :: 6.50%
PRICE :: £57,500,000
DATE :: Sold December 2016
TENURE :: Long leasehold
CLIENT :: Ashford Developments
PRICE :: £13,711,000
DATE :: Sold January 2017
TENURE :: Freehold
CLIENT :: Blackrock Investment Management
PRICE :: £4,740,000
NET INITIAL YIELD :: 4.65%
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INVESTMENT TRANSACTIONS
STANDALONE RETAIL
THE RANGE,HALIFAX
B&M,LEEK
ALDI,BEDFORD
HOMEBASE,BEDFORD
DATE :: Purchased May 2017
TENURE :: Freehold
CLIENT :: AXA IM
PRICE :: £7,500,000
NET INITIAL YIELD :: 4.30%
DATE :: Sold December 2015
TENURE :: Freehold
CLIENT :: Knight Frank Investment Management
PRICE :: £6,400,000
NET INITIAL YIELD :: 6.81%
DATE :: Sold August 2016
TENURE :: Freehold
CLIENT :: M&G Real Estate
PRICE :: £4,620,000
NET INITIAL YIELD :: 8.50%
DATE :: Sold July 2017
TENURE :: Freehold
CLIENT :: DVS Property Limited
PRICE :: £5,050,000
NET INITIAL YIELD :: 6.25%
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INVESTMENT TRANSACTIONS
STANDALONE RETAIL
PC WORLD & CURRYS,HOVE
INTERCHANGE RETAIL PARK, IPSWICH
DATE :: Purchased April 2016
TENURE :: Freehold
CLIENT :: Aberdeen Asset Management
PRICE :: £13,600,000
NET INITIAL YIELD :: 5.40%
DATE :: Purchased August 2015
TENURE :: Freehold
CLIENT :: Teeside Pension Fund
SIZE:: 62,165 sq ft
PRICE :: £15,050,000
NET INITIAL YIELD :: 6.25%
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INVESTMENT TRANSACTIONS
STANDALONE RETAIL
BOUNDARY MILL,SHEFFIELD
MATALAN,LEEDS
MATALAN,BURY ST EDMUNDS
DATE :: Sold April 2016
TENURE :: Freehold
CLIENT :: Boundary Mill Stores
WAULT :: 25 years
SIZE :: 130,000 sq ft
PRICE :: £14,500,000
NET INITIAL YIELD :: 6.00%
DATE :: Purchased April 2016
TENURE :: Freehold
CLIENT :: SAKD Properties Limited
PRICE :: £3,900,000
NET INITIAL YIELD :: 7.70%
DATE :: Sold June 2017
TENURE :: Freehold
CLIENT :: CBRE Global Investors
PRICE :: £4,360,000
NET INITIAL YIELD :: 6.56%
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INVESTMENT TRANSACTIONS
SOLUS DIY
WICKES,DARTFORD
WICKES,CHATHAM
WICKES,HUDDERSFIELD
WICKES & KFC,SHIPLEY
DATE :: Sold October 2016
TENURE :: Freehold
CLIENT :: M&G Real Estate
PRICE :: £4,716,000
NET INITIAL YIELD :: 6.50%
DATE :: Purchased April 2015
TENURE :: Freehold
CLIENT :: Columbia Threadneedle
PRICE :: £4,750,000
NET INITIAL YIELD :: 6.74%
DATE :: Purchased December 2016
TENURE :: Freehold
CLIENT :: London Metric
PRICE :: £8,500,000
NET INITIAL YIELD :: 4.79%
DATE :: Sold April 2016
TENURE :: Freehold
CLIENT :: London Metric
PRICE :: £6,900,000
NET INITIAL YIELD :: 5.60%
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“I AM DELIGHTED WITH THE SERVICE I HAVE RECEIVED FROM KNIGHT FRANK OVER THE LAST 3 YEARS. THE TEAM ARE EXTREMELY PROACTIVE AND HAVE CONCLUDED SOME EXCELLENT TRANSACTIONS
ON BEHALF OF THE TRAVIS PERKINS PROPERTY TEAM IN CHALLENGING SITUATIONS”
Jo LordProperty Director, Wickes
INVESTMENT TRANSACTIONS
SOLUS DIY
B&Q,DERBY
B&Q,HULL
WICKES,SHREWSBURY
B&Q,SUNDERLAND
DATE :: Purchased February 2015
TENURE :: Freehold
CLIENT :: M&G Real Estate
PRICE :: £4,050,000
NET INITIAL YIELD :: 8.56%
DATE :: Purchased August 2017
TENURE :: Freehold
CLIENT :: The Hanro Group
PRICE :: £8,676,000
NET INITIAL YIELD :: 6.75%
DATE :: Sold June 2015
TENURE :: Freehold
CLIENT :: Ares Management, L.P
PRICE :: £20,600,000
NET INITIAL YIELD :: 6.65%
DATE :: Purchased December 2016
TENURE :: Freehold
CLIENT :: London Metric Plc
PRICE :: £9,373,000
NET INITIAL YIELD :: 7.45%
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ALEX MUNROT: +44 20 7861 1116
DOM WALTONT +44 20 7861 1591
We are able to advise on the complex nature of development, including scheme appraisals, pre-let negotiations & lease structure, land purchase and development agreements, leading ultimately to the funding and delivery of the project.
DEVELOPMENT
“KNIGHT FRANK SOURCED AND DELIVERED AN OFF MARKET TRANSACTION FOR US SHOWING A KEEN UNDERSTANDING OF OUR REQUIREMENTS AND A STRONG ABILITY TO ADVISE ON AND DELIVER THE ASSET.”
James DunneAberdeen Asset Management
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DEVELOPMENT TRACK RECORD
THE CRESCENT,HINCKLEY
HOWARD ROAD,ST NEOTS
ASDA, SOUTH QUAY,HAYLE
WEALDSTONE,LONDON
CLIENT :: Peveril Securities Ltd
OUTLINE :: Site acquisition of a harbour, the pre-letting of the supermarket to ASDA stores and then the forward funding of the development
ACTIVITY :: Sold to LSIM for NILGOSC for £23.7m reflecting a NIY of 4.4%.
CLIENT :: Ashford Developments / Pears Property
OUTLINE :: New Asda foodstore comprising 16,000 sq ft and The Gym Group of 17,000 sq ft
ACTIVITY :: Purchased on behalf of the client and agreed a new lease term to Asda and The Gym Group, and advised the JV on the sale to Aberdeen Asset Management.
CLIENT :: Osprey Equity Partners
OUTLINE :: Forward funding of a 100,000 sq ft Sainsbury superstore as part of a redevelopment of Hinckley town centre by the Tin Hat Partnership, which completed in October 2015
ACTIVITY :: Purchased by Osprey Equity Partners for £39.5 million, representing a net initial yield of 5.025%.
CLIENT :: Quora Developments Ltd
OUTLINE :: 50,000 sq ft of retail plus 10,000 sq ft industrial starter units. Primary tenants include Aldi, B&M and Pets at Home
ACTIVITY :: Site identification, site acquisition, leasing agreements and development consultancy.
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PROFESSIONALThe valuation team have a dedicated Out of Town Retail capability run by Graham Spoor. They currently value across a broad spectrum of institutional / REIT & Propco portfolios, approximately £4.5 billion Out of Town assets equating to 18 million sq ft.
GRAHAM SPOOR MRICST: +44 20 7861 1539
GAVIN SPREYER MRICST +44 20 7861 1585
Service Lead & SignatoryPartner, Valuations, RICS Registered Valuer
Graham has over 30 years’ professional valuation experience across all sectors. He is a shopping centre specialist. He was, for many years, sole signatory to British Land, latterly joint signatory to Land Securities (retail & leisure assets) and, until 2014, signatory to MEPC, covering their portfolio of Business Parks across the UK. Other ‘mixed’ funds include work for TIAA, Lothbury and Ellandi. He is also involved with a wide number of bank instructions for a range of lenders and borrowers.
Principal Supporting PartnerPartner, Valuations, RICS Registered Valuer
Gavin joined as a Partner at Knight Frank in 2016 and has over 20 years’ valuation experience and over 30 years' of property expertise. Prior to joining, Gavin was primarily responsible for the valuation of a number of institutional and property company clients that included the Standard Life Shopping Centre Jersey Property Unit Trust, Aberdeen Investors, the Coal Pension Funds, the Grosvenor Estate, the Crown Estate and Hansteen plc. Gavin also has a number of relationships within the banking community including Barclays, Barings, JP Morgan, RBS and Aviva Finance.
TOM WITHEY MRICST: +44 20 7861 1585
AssociateRetail Warehouse, Valuations, RICS Registered Valuer
Tom provides portfolio valuation advice to investors on a monthly, quarterly and annual reporting basis. His leisure specialism includes advising Legal & General’s Leisure Fund and he also values the iconic Madame Tussauds, London on behalf of Fubon Life. His extensive knowledge of the Out of Town Retail sector ranges from valuing prime and secondary retail warehouse schemes across the UK primarily for institutional investors, UK REITs and banks. His most recent Out of Town Retail instruction undertaken for secured lending purposes included the re-finance of a leading REIT’s Out of Town portfolio on behalf of a major lender. Tom would focus on retail warehouse valuations in respect of this mandate.
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THE FORT SHOPPING PARK,BIRMINGHAM
ST ANDREW'S QUAY RETAIL PARK,HULL
PARC TROSTRE,LLANELLI
SIZE :: 326,913 sq ft
OUTLINE :: A bulky goods park comprising two retail warehouse terraces together with two solus restaurant units and a pod unit. Tenants include B&Q, Next, Wren Living, DSG, Pets at Home, Pizza Hut and The Restaurant Group.
INSTRUCTION :: Orchard Street Investment Management
CLIENT :: 264,734 sq ft
OUTLINE :: A prime Open A1 (including food) uncovered retail park arranged in three main terraces providing 34 units. Occupiers include Marks and Spencer, Arcadia, Debenhams, Next, Boots, H&M and WH Smith.
INSTRUCTION :: M&G Real Estate
CLIENT :: 261,569 sq ft
OUTLINE :: Open A1 (food and non-food) retail park. It is regarded as the leading out of town retailing location in the West Midlands and it is one of the top five shopping parks in the UK.
INSTRUCTION :: West Midlands MAPF (12.5% stake)
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PROFESSIONAL TRACK RECORD
VALUATION
LOMBARDY RETAIL PARK,HAYES
NEXT, CHARLES WAY,HEDGE END, SOUTHAMPTON
SPRINGVALE RETAIL PARK,ORPINGTON
STOCKTON TEESIDE RETAIL PARK,STOCKTON-ON-TEES
THE BREWERY,ROMFORD
SIZE :: 514,386 sq ft
OUTLINE :: Open A1 (food and non-food) retail park including leisure. It is regarded as Britain’s 7th largest retail park. Occupiers include Sainsbury’s, TK Maxx, Gap, Virgin Active and Vue Cinema.
INSTRUCTION :: M&G Real Estate (25% stake)
SIZE :: 100,223 sq ft
OUTLINE :: Comprising nine Open A1 retail units over two terraces, constructed in the late 1990’s. The tenant line up is Argos, Harveys, Paul Simon, Currys, Halfords and Furniture Village.
INSTRUCTION :: BlackRock UK Property Fund
SIZE :: 201,921 sq ft
OUTLINE :: A retail warehouse park consisting of two opposing terraces, four pod units, a petrol filling station and a fast food unit. Open A1 and part bulky goods planning consent. Occupiers include Next, JD Sports, Mothercare, TJX UK and Costa Coffee.
INSTRUCTION :: Aviva Investors
SIZE :: 29,321 sq ft
OUTLINE :: Comprising an open A1 Solus unit let to Next for 20 years from June 2013, with 5 yearly minimum fixed uplifts.
INSTRUCTION :: ReAssure
SIZE :: 342,931 sq ft
OUTLINE :: Open A1 retail park constructed in the 1980’s. Comprises three phases and provides supermarkets, home improvement, lifestyle and entertainment stores, a fitness centre and restaurants.
INSTRUCTION :: British Land
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PROFESSIONAL TRACK RECORD
VALUATION
Stephen has been involved in many key projects over the past few years, a selection of which are listed below:
Morrisons
Independent advisor to the Competition Commission (now Competition and Markets Authority) on the Wm. Morrison Supermarkets plc acquisition of Safeway.
Waitrose
Advised Waitrose on initial roll-out of Little Waitrose convenience store business, providing extensive geo-demographic analysis.
Stephen has also contributed to numerous retail publications:
“THE RETAIL INVESTMENT TEAM AT KNIGHT FRANK WAS HIGHLY PROFESSIONAL AND MADE THE SALE OF OUR ASSET IN PUTNEY AS SEAMLESS AS POSSIBLE FROM INITIAL REPORTING RIGHT THROUGH TO COMPLETION. THE DEPTH OF EXPERIENCE AND BREADTH OF CONTACTS WITHIN THE TEAM WAS IMPRESSIVE AND WAS KEY TO ACHIEVING A SALES PRICE SIGNIFICANTLY AHEAD OF QUOTING”
Emma JohnstoneRetail Investment Executive, British Land
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Knight Frank benefit from a tremendous retail research capability headed by Stephen Springham who works within the foodstore team.Stephen has nearly 25 years’ experience specifically within the retail sector, gained across an array of high profile research, analysis and consultancy roles. He was initially employed as a retail analyst within two of the UK’s leading retail consultancies, Management Horizons Europe and Verdict Research. This retail knowledge was developed further at the leading accounting practice PricewaterhouseCoopers, which proved a bridgehead into both in-depth financial analysis and client-facing consulting.
For the last 15 years, he has specialised in retail property, initially working as a retail consultant for Experian and subsequently as Head of Retail Research for the property advisor King Sturge (transferring to the role of Director of Retail Research at Jones Lang LaSalle following the two companies’ merger in 2011).
He joined Knight Frank as Head of Retail Research in 2015.
A significant proportion of his career has been dedicated to the UK foodstore sector and he has a deep understanding of macro issues that drive the grocery industry generally, as well as micro-level GIS-based factors (e.g. demographics) that influence individual store performance.
Stephen regularly writes articles and thought leadership pieces on these issues and presents to key stakeholders within the foodstore industry. He is often quoted in the media on both retail and foodstore-specific matters.
RESEARCH CAPABILITY
STEPHEN SPRINGHAMT +44 20 7861 1236
OUR TEAM
ANDREW MCGREGORT: +44 20 7861 1531E: [email protected]
DOMINIC WALTONT: +44 20 7861 1591E: [email protected]
ALEX MUNROT: +44 20 7861 1116E: [email protected]
STEPHEN SPRINGHAMT: +44 20 7861 1236E: [email protected]
DAVID LEGATT: +44 20 7861 5119E: [email protected]
LISA ATTENBOROUGHDebt AdvisoryT: +44 20 3909 6846E: [email protected]
STEPHANIE BAIGENTT: +44 20 7861 1209E: [email protected]
OLIVER PETCHT: +44 20 7861 1107E: [email protected]
DANIEL SERFONTEINT: +44 20 3640 7037E: [email protected]
SOPHIE TIERNEYT: +44 20 7861 1525E: [email protected]
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12 COMMERCIAL OFFICES
Cardiff
Bristol
Birmingham
Manchester
Sheffield
Leeds
Newcastle
GlasgowEdinburgh
Aberdeen
Central London & West End
RETAIL CLIENTS
35
60 COUNTRIES15,020 PEOPLE
PEOPLE
2,14585
OFFICES
1,035 80
OFFICES
PEOPLE
70023
OFFICES
PEOPLE
503
OFFICES
PEOPLE
5,61558
OFFICES
PEOPLE
OFFICES
5,475169
Continental Europe
16 Countries Austria / Belgium / Cyprus Czech Republic / FranceGermany / Ireland / Italy / Monaco The Netherlands / Poland / Portugal Romania / Russia / Spain Switzerland
The Middle East
2 CountriesThe Kingdom of Saudi ArabiaThe United Arab Emirates
Asia Pacific
14 Countries Australia / Cambodia
China / Hong KongIndia / Indonesia Japan / Malaysia
New Zealand / PhilippinesSingapore / South Korea
Taiwan / Thailand
United Kingdom
Africa
10 CountriesBotswana / Kenya / Malawi Nigeria / Rwanda / South AfricaTanzania / Uganda / Zambia Zimbabwe
The Americas
15 CountriesArgentina / Brazil
Canada / Chile / Colombia Costa Rica / Dominican
Republic Mexico / PeruPuerto Rico / The Caribbean (4)
Usa
PEOPLE
418 OFFICES 37
UK GLOBAL DESK PROVIDING ACCESS TO GLOBAL CAPITAL
DEBORAH WATTT: +44 20 7861 1678E: [email protected]
QUENNIE HOT: +44 20 3826 0612 E: [email protected]
© Knight Frank LLP 2017 – This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no responsibility or liability whatsoever can be accepted by Knight Frank LLP for any loss or damage resultant from any use of, reliance on or reference to the contents of this document. As a general report, this material does not necessarily represent the view of Knight Frank LLP in relation to particular properties or projects. Reproduction of this report in whole or in part is not allowed without prior written approval of Knight Frank LLP to the form and content within which it appears. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names.
@KFRetail
KnightFrank.co.uk/commercial/retail
