What was The Buzz in August?
Our monthly roundup of real estate industry news.
Here are a few of the stories that caught our attention in August. With large investments happening within the retail sector, and Central London office lettings on the rise, the commercial property sector is looking up. Plus a UK-first and huge hit for sustainability, with Nova, Oxford scoring a 100% BREEAM rating (the highest ever on record!)
Landsec reveals plans to revamp two of its major shopping centres in a £32m investment drive
Landsec has submitted two planning applications to enhance its prime retail destinations as it gathers pace with its retail investment plans. The applications form part of a targeted strategy of investment which seeks to further strengthen Landsec’s portfolio of catchment dominant retail destinations.
At St David’s in Cardiff, Landsec is investing £17m to transform a former Debenhams unit into a vibrant outdoor space that will bring life and value back to this part of the centre. Plans for the 102,000 sq ft square – the equivalent of almost one and a half football pitches – will create new opportunities for brands, while enhancing access to nature and play space to meet the demand for quality family space in the city centre.
The square’s proposals were designed in collaboration with over 5,000 people living and working in Cardiff that Landsec engaged during consultation. It will feature two new restaurants with terraces and smaller kiosk-style units that open out onto the square for food and beverage brands to grow their businesses. The plans also include a leisure space to meet continued consumer demand for best-in-class leisure experiences across the UK. If approved, the square is expected to build on St David’s 30m annual footfall while boosting local job opportunities.
In Leeds, Landsec will invest £15m into the expansion of its popular food court concept, Trinity Kitchen. With a rotating line-up of food trucks and permanent eateries, Trinty Kitchen transformed the idea of traditional food courts when it opened in 2013 and has since welcomed over 800,000 visitors annually. The plans will build on this success, repurposing under-utilised retail space and delivering a 72,000 sq ft multi-dimensional hospitality destination complete with a new outdoor terrace offering views overlooking the city.
Nik Porter, Head of Retail Asset Management at Landsec said: “These submissions mark the next step in our investment in our major retail destinations. Trinity Leeds and St David’s Cardiff both continually outperform industry benchmarks for footfall and have occupancy rates over 94%. By enhancing the guest experience, we’ll increase footfall and dwell time which in turn will bring more brands to the centres, whilst also strengthening the performance of brands already in occupation.
These new spaces will create even more opportunities for both new and existing brands to benefit from the attraction of new F&B and leisure experiences, quality outdoor space, and the increasing demand for leisure.”
Oxford science scheme scores UK’s first ever 100% BREEAM rating
The Nova scheme has become the first UK project to receive a 100% BREEAM score, in recognition of its unfailing commitment to sustainability across every aspect of the site.
Developed in collaboration between UK based property companies, Wrenbridge and Buccleuch, Nova encompasses 43,745 sq ft of mid-tech, research and development (R&D) and lab facilities. It’s strategically situated in close proximity to the Oxford Science Park and Arc Oxford and will further boost the UK’s rapid growth within the life sciences sector.
Scoring an EPC A+ rating for steps taken to increase energy efficiency, the facility includes roof mounted solar panels and air source heat pumps, delivering on-site renewable energy generation and low-cost heating and cooling of the building. The interior also prioritises the use of natural light, with an integrated solar shading system installed to further reduce energy consumption and enhance comfort. The wider site includes landscaped gardens and a wildlife pond to enhance biodiversity across the development. For users of the facility, there are 46 cycle spaces and 50 car park spaces – 25% of which have electric charging.
British Land in £45m swoop for trio of retail parks
British Land has acquired a portfolio of three UK retail warehouse assets from M7 Box+ II, a fund managed by M7 Real Estate, for over £45m.
St David’s Retail Park in Bangor, Queens Drive Retail Park in Kilmarnock and Enham Arch Retail Park in Andover, comprise a total of over 270,000 sq ft of retail warehouse space, with strong occupancy levels and a blended weighted average lease term (WALT) of over five years.
John Pow, managing director at M7 Real Estate, said: “This transaction marks the conclusion of our asset management strategy for these assets and generates a solid return for our investors. The sale allows the fund to return equity back to investors whilst we continue to work through the asset management strategy for the remaining four assets. The retail warehousing sector continues to perform well and remains highly attractive to investors and occupiers. The sector plays an integral role in the ecosystem for retailers, including increasingly for last mile delivery and click-and-collect. We are now focused on recycling capital into high growth assets within our preferred sectors of logistics and retail warehouses.”
Central London office lettings increased noticeably in Q2 of 2024, says Savills
Runway East to open next flex location in second deal with Soho Estates
Flexible workspace operator has signed 7,000 sq ft at 58 Wardour Street in a 10 year partnership deal with Soho Estates. The property, the company’s 11th, will be home to managed offices for teams of between 20 and 100 people, and is scheduled to open in November 2024.
This is Runway East’s second deal with Soho Estates, which becomes the third landlord with which Runway East has multiple sites – the others being L&G and GPE. The new site is just 50 metres from its other Soho location. Each office comes with its own meeting room(s) and a kitchen, along with dual-aspect views, with customised fit outs available. Members will also be able to benefit from separate meeting rooms and a rooftop event space at Runway East’s neighbouring site.
Natasha Guerra, CEO of Runway East, said: “Soho has got to be one of the best places in London to work, and we’re creating a hub for our members here too. We’re beyond thrilled to sign our second site in Soho, and with Soho Estates, who are a great partner. I’m biased but I think we’ll offer the best managed office space it’s size in Soho. It’s a prime corner aspect building, with exposed brickwork and feature windows, excellent transport links, and iconic views of the bustle of Soho – it could not be more ‘London’.”
Soho has seen the greatest levels of leasing activity this year according to Savills.
“We’re delighted to strengthen our partnership with Runway East through a second site,” said Philip Thompson, director of Soho Estates, “There is huge demand for flexible workspaces in Soho, and we’re committed to diversifying our portfolio to meet demand, support the diversification of businesses here to aid the long term success of Soho – which is thriving.”
