Tim Hornor, partner at Edgerley Simpson Howe, argues that traditional in-town retailers have found out-of-town space relatively easy to adapt and stores cheap to downsize.

“Retailers such as John Lewis, Next and TK Maxx are all taking adapted bulky goods stores. It may not be the preferred option but at least it’s a new store rather than just dreaming about an in town opportunity”. He says. The fact is that out-of-town is there to be done, without lengthy planning battles. Its achievable, rather than waiting for planning to be granted on shopping centre developments and waiting for them to be built”.

Retail park space largely comprises location with bulky goods consent, which has allowed the mainly-furniture store formats offered by John Lewis and Next to grow out of town. For other in-town retailers, the tighter availability of open A1 consent could restrict ambitious growth plans.

And agents suggest that in-town retailers, which have been used to enviable rent concessions and packages over the past couple of years could find the comparatively expensive and competitive nature of the out-of-town market a challenge.

John Maddison, chairman of Accessible Retail, warns: “Some department store retailers have been used to {receiving} big chunks of money for anchoring schemes, but that has never been available out of town.”

So while appropriately sized in-town sites continue to evade the high street fashion giants, any significant move out of town could prove too costly.  But with retailers need to grow in an attempt to attract more of the spend from consumers’ ever dwindling cash piles the desire for spare space seems unstoppable.

Tim Hornor, Estates Gazette

Clients of Scottish Widows Investment Partnership (SWIP), advised by Edgerley Simpson Howe (ESH) have sold their Clifton Moor Retail Park (Phase 3) in York.

Clients of Scottish Widows Investment Partnership (SWIP), advised by Edgerley Simpson Howe (ESH) and Joiner Cummings have sold their Clifton Moor Retail Park (Phase 3), Hurricane Way in York to client’s of ING advised by CWM for £37.66 million, representing a net initial yield of 5.59%.

The 144,300 sq ft retail park is let to Toys R Us, Comet, JJB Sports, Mothercare, McDonalds, Argos, Currys, Maplin at rents ranging from £21 to £26 per sq ft and has been purchased by West Midlands Metropolitan Authority Pension Fund.

Jo Duffield of ESH said “The price achieved reflects the competition for this type of investment being an open consented park with a strong tenant line up. Clifton Moor is a significant out-of-town destination with two further retail parks, a VUE cinema and Tesco Extra adjacent.  The sale for SWIP’s client reflects their strategic investment criteria.”

Edgerley Simpson Howe advised Scottish Widows Investment Partnership..

(Sept 2010)

Last week it was reported that House of Fraser, the department store, is drawing up plans to open out-of-town stores in retail parks – usually the preserve of furniture and electricals retailers.

House of Fraser usually takes space in shopping centres or city high streets.

The reason for the change in strategy? The severe lack of new town centre and shopping centre developments in the UK.

Adam Patrick, partner at out-of-town retail experts Edgerley Simpson Howe, told Property Week magazine: “After years of being able to secure prime, good-quality shopping centre and town centre space, frequently on very favourable financial terms, many of the main department store chains have seen their pipeline of new space significantly reduce.

“It’s now often unviable for developers to make new department store-anchored developments available in the short-to-medium term, mainly due to funding shortages or poor returns. Many of the department stores are still trading very profitably and are keen to trial new formats. Equally, most of the main stores still lack comprehensive geographic coverage throughout the UK. The out-of-town market therefore offers an ideal alternative in which these chains can expand quickly and on a relatively large-format basis.”

The lack of mega-malls could also help drive some retailers back into town centres, which have been so battered by the growth of the edge-of-town shopping centre and supermarket. The economics of smaller stores are harder to make work. But retail observers believe that developers who target market towns could boost struggling economies and provide retailers looking for space with what they want.

Adam Patrick, Sunday Telegraph

Standard Life investments, advised by Edgerley Simpson Howe, has let the former Allied Carpets’ store on St Edmundsbury Retail Park, Bury St Edmunds to Pets At Home.

The pet store has taken the 10,345 sq ft unit on a new 15-year lease at a rent of £20 per sq ft.

St Edmundsbury Retail Park is the main out of town scheme in Bury St Edmunds and is fully let to Homebase, Dreams and Carpetright.

Green & Partners represented Pets At Home.

(Oct 2009)

Edgerley Simpson Howe has been retained by Standard Life Investments to manage its retail park portfolio in England and Wales.

The instruction covers 28 retail parks totalling 3.2 million sq ft and includes major schemes such as Ladymead Retail Park, Guildford;  Water Gardens, Harlow: Brookfield Retail Park, Cheshunt ; Central 6 Retail Park, Coventry; and Gallions Reach, Beckton, East London.

Lorcan Mooney, Retail Parks Fund Manager at Standard Life Investments, comments: ”We are delighted to award Edgerley Simpson Howe the management contract for our retail park portfolio for a further 5 years after a competitive re tender from a very strong field of candidates. They have consistently been one of our top performing managing agents over a number of years and we look forward to continuing the excellent service provided by them  to our retailers”

Simon Marshall, head of Edgerley Simpson Howe’s management team, says: “This appointment continues our excellent relationship with Standard Life for whom we have worked for over eight years. Effective property management has come to the fore in the current climate and as the only specialist retail park adviser with a dedicated management team we are well placed in the market.”

CGNU Life Assurance, advised by Edgerley Simpson Howe, has let a unit at Centaurus Retail Park, Cribbs Causeway, Bristol to Carpetright.

The retailer has taken Unit 1A comprising 10,000 sq ft on a new 15-year lease, with five yearly rent reviews, at £33.50 per sq ft.

Harvey Spack Field represented Carpetright.