AUTUMN 2015 | ISSUE 6 | THE MAGAZINE OF THE COMPLETELY GROUP
BREWDOG Barking up the right tree
THE RISE OF THE SHED SHOP CHARLIE MAUDSLEY BIG DATA WITH BRITISH LAND A DRINK WITH MARK BOURGEOIS
£20,000 fee for drive thr u’s
KFC IS ALL ABOUT GREAT FOOD, GREAT TEAMS AND GREAT PARTNERSHIPS AND WE’RE ON THE LOOKOUT FOR OVER 400 NEW SITES.
OUR APPETITE EXTENDS ACROSS A VARIETY OF LOCATIONS INCLUDING OUT OF TOWN, RETAIL AND LEISURE PARKS, URBAN AND TRANSPORT HUBS. TAKE A FRESH LOOK AT:
WWW.KFCDEVELOPMENT.CO.UK
A Different Message // 3 ISSUE #6 | AUTUMN 2015 EDITORIAL Editor: Duncan Lamb ART Creative Director: Ben Parer Design: Andy Fleetwood, Yunus Shaikh, Stuart Meades PHOTOGRAPHY Photographers: Paul Harmer, Murray Scott, Sebastian Bednarski, BrewDog and Huw Williams PRODUCTION Production Editor: Mark Bailey Printer: Hardings Print Solutions MECHANICAL INFORMATION Cover Paper: Antalis Curious Soft Touch Milk 300gsm Cover Treatment: UV Printing 4 colour process with Specials PMS Fluro 801 and PMS Fluro 805 Binding: Perfect Bound Body Paper: Conqueror CX22 Diamond White 120gsm and 4pp of Yupo Blue 150gsm Fonts: Body text – Avenir Headlines & Specials – Aachen BT, Aldine 721 BT, Archer, Baskerville, Big Caslon, Bodoni Oldface 72, Bookerly, Brandon Grotesque, Calibri, Calvert, Clarendon, Dharma Punk, Dharma Punk 2, Duke, FS Lola, FaciSide Caps, Georgia, Helvetica Neue, Impact, Input Sans, Lobster 1.3, Mary Ann, Meta Plus, Minion Pro, Phantasm, Pluto, Punkland, Verdana and Zapf Dingbats Apps Used: Adobe CC PROPERTY LISTING & ADVERTISING SALES Phone: 0844 6626600 Email: sales@completelygroup.com CREATIVE & MARKETING SERVICES Phone: 01483 238 920 Email: info@completelygroup.com EVENTS Phone: 01483 238 924 Email: events@completelygroup.com
DOM MILLAR Managing Director The Completely Group
HAPPY COINCIDENCES & HARD WORK
I was reading through the articles in this issue and noticed that two of them quite separately reference the process of taxidermy. Which is not something you’d expect in a magazine which is focused primarily on property and marketing. Coincidence is indeed a strange phenomenon. That thought put me in mind of a quote about coincidence which has been attributed to everyone from golf legend, Gary Player, through to Thomas Jefferson: “I’ve noticed that the harder I work; the luckier I get”. In business, it often seems that it is coincidence which opens up opportunity. However, if you look beneath the surface of what’s happening, it rarely – if ever – is pure coincidence.
ACCOUNTS Phone: 01483 238 931 Email: accounts@completelygroup.com
We go through our careers meeting people, working together and building contacts. Sometimes years can elapse before you do business with someone again but it is amazing – especially in property – how often you will eventually re-connect.
COVER Subject: BrewDog founders, Martin Dickie and James Watt.
So networking – which is basically the process of finding out what you don’t know – is now an essential part of business development.
The Completely Group, Parklands, Railton Road, Guildford, Surrey, GU2 9JX Phone: 01483 238 920 Email: info@completelygroup.com Web: www.completelygroup.com To keep up-to-date with all our news follow us on Twitter: @completelygrp
You can do it over a drink with someone after work or through an organisation like the Monopoly Network (see p36) or at events like Completely Retail & Leisure Marketplace, but the bottom line is that you have to do it. Perhaps the new version of that old quote should be: “I’ve noticed that the more I network; the more business I get”. Enjoy this issue and we hope to see you at Completely Retail & Leisure Marketplace.
VAT no. GB 770788879 Company no.4321497 [different] [different]Autumn Spring 2015
4 // Contents
06
THE NUMBERS GAME Charlie Maudsley tells us how British Land is using ‘Big Data’ to shape strategy for its £7.6bn retail portfolio
FEATURES 16 A new model for homes
A ground-breaking development by Countryside in East London is creating a new blueprint for private-public development partnership.
20 Population Boom What the number of people living in the Capital will do to the housing market.
24 Feel the buzz at Completely Retail & Leisure Marketplace There’s something special about the September show.
16
31 An Amazing Bike Ride We counted them all out…
32 The rise of the shed shop Why investors are increasingly turning their attention to the sheds that service the shops.
36 Getting network coverage Should you be a member of the Monopoly Network?
38 The making of a magazine How The Completely Group created a new magazine for the Design Business Association.
32
// 5
12
BARKING UP THE RIGHT TREE BrewDog has changed the face of British brewing and is now expanding its bar network here and abroad
31
REGULARS 22 Keeping it Brief All the news that fits!
27 What type are you? Our latest Cheat Sheet looks at the best typefaces to use in the digital age.
38
40 A drink with… Mark Bourgeois. The Capital & Regional man talks to us about shopping centres, his upcoming BCSC presidency and taxidermy.
42 Portfolio 43 Secret Agent Our mole is back from holiday and trying to turn ‘vacation visions’ into reality.
6 // The Numbers Game
[different] Autumn 2015
// 7
THE
NUMBERS GAME The days when the property business used the backs of fag packets for calculations are long gone. In today’s market – and in particular in the retail property sector – data is king. British Land is the biggest retail landlord in the UK and is at the forefront of using ‘Big Data’ to guide strategy. We spoke to its Head of Retail & Leisure, Charlie Maudsley, about how to play the numbers game. Photography by Paul Harmer
[different] Autumn 2015
8 // The Numbers Game
“We’re obsessed by data,” says Charlie Maudsley when asked how British Land shapes strategy for its £7.6bn UK retail property portfolio. “With regard to consumers, we’ve got four main sources: we’re conducting 50,000 consumer surveys a year, building on the 125,000 that we’ve completed since 2012. We get footfall data from all our multi-let assets. We’re collecting sales data on 1,000 of our 1,500 leases and we use CACI data to understand local demographics and catchments. We cross-reference this data with other sources such as Wi-Fi sign-ups to supplement our understanding. “In terms of retailers, we’ve got detailed news tracking to keep abreast of new store requirements and evolving formats. We invest in data to understand the demographic profile of our target retailers. We know website usage for every retailer in every postal area regardless of whether or not we have them on our schemes. And we know which retailers trade well together. “So we’ve got a huge amount of data about both our consumers and our retailers and this has given us a much better understanding of the quality and the potential of our portfolio.”
The focus for today’s retailer is: ‘Have I got enough distribution channels to cover the spend in the postcodes I’m targeting?’
[different] Autumn 2015
He emphasises that access to this level and granularity of detail is now more essential ever because consumer ‘journeys’ have become so varied that retailers are not thinking in terms of being in shopping centres or in-town versus out-of-town; instead they are targeting ‘postcode penetration’. Maudsley observes: “The focus for today’s retailer is: ‘Have I got enough distribution channels to cover the spend in the postcodes I’m targeting?’” Even though British Land is the biggest provider of shopping space in the UK, it still sees huge future potential in its sector. “Each year at our sites, we have footfall equating to 340m visits: that’s around 7m people spending almost £6bn. But there’s huge scope for future growth: 40m people live in our asset catchments, but we currently capture just 4% of their available spend. “Five years ago, less than 2% of our portfolio income came from food & beverage trade. We’ve quadrupled that in the intervening period but we think there’s still a long way to go.” The figures are compelling but at the heart of the British Land strategy is meeting the – very human – needs of shoppers.
Glasgow Fort Shopping Park, Glasgow.
// 9
Maudsley notes: “Today, our expectations as shoppers are higher: we’re fussier, we expect more, we demand better value and greater convenience. The traditional property business categorisation between shopping centres and retail parks is not particularly relevant to consumers and retailers. It’s the range and quality of the offer and the environment that really matters and how effectively they satisfy different consumer needs.”
space. The most successful retailers now have well-developed omni-channel strategies with physical space at the heart of their offer.”
Despite the growth of online retailing, he believes that the physical environment will remain at the centre of the shopping environment.
This immediately begs the question as to the supply of the most effective physical space for successful retailing. It’s clear that the UK already has a lot of shops but it’s less clear as to whether they are what we need for the new demands of retailing.
“Even in today’s technology-enabled world around nine out of every 10 shopping transactions still touch physical
Maudsley is emphatic: “There isn’t enough of the right quality space.
Above Right: Nugent Shopping Park, Orpington. Above Left: Ealing Broadway Shopping Centre, London.
Take three centres To the right is an outline comparative data analysis of three of British Land’s assets: Glasgow Fort, Orpington Nugent and Ealing Broadway. Maudsley comments: “The statistics show that each of the assets is doing a different job, but they’ve all got very good rent affordability and they’ve all got very good annualised spend per consumer. “Glasgow benefits from high spending and longer dwell time while Ealing shoppers visit on average twice a week. Orpington has a shorter dwell time but higher conversion. It is only a quarter of the size of Glasgow but still commands £2,700 per visitor group per year and does this with a rent-to-sales ratio of just 7%. “Each asset succeeds by meeting differing needs. There’s no one-size-fits-all solution. That’s important because it demonstrates how we make money from the convenience and functional missions as well as the destination ones. The data gives us actionable insights as to how to realise these opportunities.”
Off-peak 2014
Glasgow Fort
Ealing Broadway
Orpington Nugent
Size (sq ft)
510,000
460,000
135,000
Dwell Time
81 mins
61 mins
48 mins
Frequency of visit
55 pa
104 pa
52 pa
Retail spend
£90
£44
£56
Retail conversion
79%
67%
91%
Catering spend
£17
£12
£9
Catering conversion
34%
29%
20%
Annualised spend
£4,239
£3,398
£2,713
Rent: sales
10%
11%
7%
Source: 2014 off-peak exit surveys, Verdict, Springboard and British Land
[different] Autumn 2015
10 // The Numbers Game
Meadowhall Sheffield: Soon to undergo a £50m refurbishment.
“Supply has been limited for the last five years and that looks set to continue. The average amount of development currently committed for the next four years is only about a million square feet per year. That’s less than half the annual average rate during the previous 20 years. “And bear in mind that it’s estimated that 25-30% of UK shopping space is now functionally obsolete. So, you’ve got that going nowhere at one end of the market, and not enough of the right space coming in at the other end. “Schemes have to be the right size for the catchment that you’re going for. A few years ago everybody said the market was just about the big destination shopping centres, but that’s not now the case.” Asked what does constitute ‘right-size’ development for today’s environment, he cites the company’s Old Market scheme in Hereford as an example. “It’s been tremendously successful – the performance has been strong, the rent-to-sales ratios are great. Previously, the town didn’t have the right quality of space and wasn’t getting much of the catchment spend. It’s not a big scheme – it’s 305,000 sq ft – but by creating the right environment for fashion and with a focus on eating and drinking, it has enabled leisure-driven visits which have attracted great footfall.” He also cites the Mayflower Centre in Basildon which is performing exceptionally well after a recent refurbishment even though it is only a few miles from a potential ‘category killer’ in the form of Bluewater. “It’s thriving because it’s satisfying a different consumer journey: ultra-convenience,” he concludes. At the other end of the scale, Maudsley and his team have been working on one of its flagship assets: the Meadowhall Centre in Sheffield.
[different] Autumn 2015
“We’ve transformed the food and beverage hall at Meadowhall and have significantly improved spend and dwell time. Catering spend is up 95% and dwell time for the scheme is up 16% since we improved the mix with offers such as Carluccio’s, Wagamama and Five Guys.” A comprehensive £50m refurbishment is also planned for the centre but in the meantime, an imaginative approach is reaping rewards. A recent ‘lock-in’ discount evening aimed at students
Old Market, Hereford: A ‘right-size’ development.
// 11
“We’ve now got a bigger, better and more balanced portfolio. Multi-let assets account for around 70% and our average scheme size is up from about £80m to £140m. During the next few years we’ll probably sell up to 10% of the portfolio, with about £200m to £300m of that happening this year.”
increased footfall by 25,000 people on the night and spend by £625,000. The main interface between the physical and online shopping worlds is click-and-collect. In this respect, British Land has the advantage that more than 90% of the parking facilities at its shopping environments are free. This gives it a clear competitive edge over retail centres where parking is paid for, and explains why the company has 50% more click-and-collect activity than the national average.
Click-and-collect shoppers have about the same dwell time as regular shoppers but, on average, spend twice as much
This becomes even more pertinent when you realise that CACI data shows that click-and-collect shoppers have about the same dwell time as regular shoppers but, on average, spend twice as much. Against a backdrop where so many factors are feeding into the retail environment, it makes the selection and management of physical assets an increasingly precise process.
Although data and analysis may underpin the British Land approach to retailing, Maudsley acknowledges that one of the primary strengths of the business is its people and their skills and experience.
“This is a very asset-specific market,” Maudsley observes. “So we can’t say to you that we’ve sold retail parks to invest in shopping centres, or vice versa, what we can say is we’re investing in sites with great potential. “During the last five years we’ve sold £1.5bn of assets: those were 85 properties where we felt our ability to influence the environment and the offer was limited.
“The final pillar of our strategy is expert people. We’ve refined how we structure the business, particularly in the asset management and the customer-focused area. We now manage our portfolio along regional lines, reflecting how retailers operate their businesses.”
“But we’ve also invested £2.4bn and we’ve completed new developments such as Hereford and Whiteley, together with extensions and other capital projects. And we’ve bought new assets such as Drake Circus in Plymouth, SouthGate in Bath plus Eden Walk and Ealing Broadway in London.
Who’s who The British Land Retail Executive Committee shapes strategy across the company’s £7.6bn shopping portfolio.
Customer Orientation
Charlie Maudsley Executive Director Head of Retail & Leisure
Right Places
Capital Efficiency
Ben Dimson
Richard Wise
Darren Richards
Bryan Lewis
Jon Rae
Head of Retail Business Development
Head of Retail Development
Head of Retail Asset Management
Head of Retail Investment
Head of Retail Finance
David Pollock
Claire Barber
Matthew Reed
Ben Grose
Retail Development
Head of Retail Assets London, South East & Meadowhall
Head of Retail Assets Midlands & South West
Head of Retail Assets North
[different] Autumn 2015
12 // BrewDog
Eight years ago, two friends embarked on a mission to change the face of brewing. The result was the phenomenal success that today is BrewDog. We caught up with founder James Watt to find out how the world domination plan is going‌
[different] Autumn 2015
// 13
In 2007, BrewDog was, in the words of James Watt, just two men and a dog in a derelict old garage. Today, the brewing business that Watt and his business partner, Martin Dickie, brought to life in that garage exports beer to 55 countries, has 32 bars, 400 staff and 30,000 shareholders.
Watt reflects: “Did we set out thinking this would happen? Probably not. Did we hope it would? Yes. Changing the landscape for beer was always our intention”.
[different] Autumn 2015
14 // BrewDog
ShuffleDog: the bar’s opening in Leeds saw the launching of a BrewDog campaign to make Shuffleboard a sport at the Tokyo 2020 Olympics
When Dickie and Watt set out on their mission to change a market dominated by “industrially brewed lagers and stuffy ales” they financed the business by finding small investors – fellow ‘punks’ in the vernacular of the business – who shared the duo’s passion and were prepared to put their money in. BrewDog had started crowdfunding their business long before the term had become as common as it is today.
“We have upcoming launches including Dog Eat Dog in Islington, DogHouse in Glasgow and BrewDog Soho in London. We’re also diversifying some of our bar concepts: ShuffleDog launched last month in Leeds, and features shuffleboard tables downstairs. We’re launching a coffee & beer house, more BottleDogs, a craft beer hotel, a sour beer facility and a craft beer distillery. We’re not exactly taking it slow…”.
“Our 30,000 shareholders are as passionate about beer as we are, and ultimately our Equity for Punks model is about community and shared interests in craft beer. “We recently partnered with finance platform, Crowdcube, to offer a UK-first in finance – bonds in tandem with equity. The Crowdcube launch led to £500,000 raised in 24 hours. Equity for Punks IV launched in April and racked up £5m in three weeks, smashing a world record. “It’s these successful rounds of crowdfunding that allow us to keep scaling up without relying on faceless suits who don’t care about the beer. Our number one goal when we set up BrewDog was to make other people as passionate about great craft beer as we are, and that is still our biggest mission today. It was never about the financial gains, it was always, and will always be, about the beer.” In 2010, the success of the brewing operation led to the business opening its own bars across the UK and then abroad. Watt reports: “We’ve got loads coming up: we’ve got new bar launches in Brussels, Rome, Germany, Glasgow and London, and a new brewery to open in Ohio”. Turnover has increased by 63% from £18m in 2013 to £29.6m last year making BrewDog one of the UK’s fastest-growing food & drinks brands. Shareholders have invested more than £14m through four rounds of Equity for Punks fundraising which is more money taken through crowdfunding than any other business on record. “The money raised will fund new bar openings across the globe,” says Watt.
[different] Autumn 2015
Bar openings are rarely conventional affairs. The company has a penchant for inexplicably linking taxidermy with craft beer. The Brighton bar was launched with the help of a stuffed donkey ‘taxi ‘ while other taxidermic stunts have seen fat cats thrown from helicopters over the city of London, beer poured out of a stuffed deer’s head and bottles of the world’s strongest beer secreted inside squirrels.
It was never about the Financial gains, it was always, and will always be, about the beer.” Can this sense of fun and eccentricity survive rapid corporate expansion? Will BrewDog lose its soul and spirit as it goes global? Watt is emphatic that it will not. “We still only make up less than 1% of the overall beer market. We rely on the people who drink our beer to help grow the business as opposed to seeking venture capitalist investment or turning to the fat cats. This adds massive value to us as we have a committed, craft beer loving community of 30,000 people with us every step of the way. “Beer is our passion and always will be, and that’s why every decision we make is based on one question: will this be good for the beer? If the answer is no, we just don’t do it. Our beer will never be compromised, and neither will our values.” As an example of this egalitarian approach to product development he cites the #MashTag project: “Every year, we essentially hand over the keys to our brewery to our social
// 15
Punk IPA: the most successful of BrewDog’s beers accounts for 50% of turnover
WHAT IS A CERTIFIED CICERONE? When you get an email from some members of the BrewDog team, their job title is accompanied by the qualification ‘Certified Cicerone’.
James Watt explains: “The Cicerone qualifications are the best-respected beer sommelier exams in the world; a process that tests an individual’s overall understanding of beer. The qualification requires knowledge across all areas of beer making, from the ingredients to glassware, to brewing and tasting. Internally, we support this endeavour by funding BrewDog team members to sit the Cicerone Certification Program exams. “Certified Cicerone is the second level of the exam, and it’s tough! We are proud that we now have more Certified Cicerones at BrewDog than any other business in Europe.” Unmasked: BrewDog founders, Martin Dickie and James Watt.
communities and invite them to vote on every element of a beer’s design from the style, the hops, the malt bill and the special twist. They even design the bottle label. “We then launch the beer once it’s brewed, and people can try a beer they had an active hand in making.” The UK is experiencing an explosion in craft beer brewing. There are now more than 800 breweries in the UK – the highest level since the 1940s. However, Watt welcomes the trend rather than worrying about the possible competition. “People are starting to realise that the big mega-corp breweries are making rubbish beer with no soul, flavour or character. They’re turning instead to independent breweries, and that demand leads to more opportunity for our brewing peers. “We love beer and we want everyone to discover how great beer can be. Whether it’s ours or another artisanal brewer, we don’t mind as long as people enjoy the beer and expand their own beery horizons, which is why we host guest beer in all our bars, celebrating a wide range of crafty goodness. “The most popular BrewDog beer is our Punk IPA which accounts for 50% of our sales and is the top selling craft beer in supermarkets. “ What would Watt recommend? “Try Dead Pony Club, Five AM Red Ale, This.Is.Lager or, if you’re not fond of the gluten, try our Vagabond Pale Ale. Beyond that, give anything that takes your fancy a whirl.” We’ll drink to that. [different] Autumn 2015
16 // A New Model For Homes
A NEW MODEL FOR HOMES If the UK is going to meet the ever increasing demand for homes, partnership between the public and private sectors has to play a vital role. We looked at a new scheme in East London which emphatically shows how the alliance can deliver much more than just homes.
[different] Autumn 2015
// 17
During the next 15 years, the programme will create more than 10,000 new and refurbished homes across all tenures
The recent history of public housing development in this country is somewhat chequered. It may be easy to look back with some scorn on the post-war development of tower blocks but it should be remembered that these new developments did liberate families from unsanitary and unhealthy warrens of Victorian terraces. In east London, post-war housing problems were exacerbated by the fact that a quarter of the housing in West Ham alone had been destroyed by enemy bombing while most of the houses that survived were in poor condition and without modern amenities. After the War, the Newham Council implemented modern building programmes and high-rise residential towers became a central part of the favoured solution for a brave new world of public housing. Sadly, throughout the UK these developments eventually became a symbol of a failed strategy, and it was a watershed moment in 1968 when a gas explosion at Ronan Point tower in Butcher’s Road, Newham caused the collapse of an entire side of the block and killed four people.
All the homes have a high specification with high energy credentials. The development was launched in 2011 and 226 units have already been completed. Even through the latter part of the recession, Countryside continued to sell at East City Point and maintained a sales rate of six homes per month. The local housing market is buoyant with many potential customers being drawn to this location because of the excellent transport links into central London and the close proximity of Canning Town Underground/ DLR station and Canary Wharf. There is a strong demand for new-build homes in the area and the scheme is attracting first-time buyers, professionals and those favourable to the close proximity of central London.
Today, the successful provision of public housing remains a complex challenge, but an exciting new scheme only a few hundred yards away from where Ronan Point once stood is now showing how the partnership between the public and private sectors can work to deliver new communities.
Canary Wharf
The Southbank The Shard
ECP
Royal Victoria Docks
R iv e r
ha
T
East City Point is a development at Fife Road by Countryside and is a key part of the £3.7bn Canning Town and Custom House regeneration programme. During the next 15 years, the programme will create more than 10,000 new and refurbished homes across all tenures, as well as new town centres and improved public realm.
Olympic Park
mes
The first phase of East City Point consisted of 102 private and 37 affordable homes, and in total the six phases will deliver 649 homes of which 227 are affordable housing and 422 are for private sale. [different] Autumn 2015
18 //
The first phase of East City Point.
To deliver the entire development Newham Borough Council looked for a partner who could deliver all the various aspects of the development. Newham’s Mayor, Sir Richard Wales, comments: “We had a vision for making this place something different, for making this a place where people would want to live but if you don’t have the right partners, it doesn’t work. It really doesn’t. “With Countryside, we’ve got people who have said: ‘Yes we get your vision, we get you want to create a place we can be proud of. If you’re going to build something why not build a place you can look at and say that’s a fantastic place.’” Positivity about the partnership is echoed by Countryside’s CEO, Richard Cherry: “In delivering this project we have been very fortunate in working with Newham Borough Council who have some very dedicated and passionate people.
If you’re going to build something why not build a place you can look at and say that’s a fantastic place
“Creating a place like this, we were looking for instant maturity – something which had immediate character.” Once Countryside was on board as developer, it began to assess what would work best in the context of the location.
Cherry reports: “What struck us about Canning Town was that in the period since the war, the area was redeveloped with a whole series of different ideas about urban design and therefore there was no clear urban structure and no clear street layout. So we wanted to create a clear, calm and legible street pattern that connected to the future redevelopment of surrounding areas so that it became as legible as possible over the wider area”. [different] Autumn 2015
The project has also involved the development of a new school – Keir Hardie Primary School – which has teaching facilities for 480 children aged between three and 11 years. In many respects, it has become the focal point for everyone involved in the project. Head teacher, Violet Otieno, reports: “Working with Countryside has been a fantastic journey, it’s amazing the way they’ve involved the children and the staff. Since the beginning, the children came to the building site to see what it’s like to start from a plan – and to now have a fantastic building. “Some of the Countryside team still drop by and we’ve been saying: ’You’ve done a fantastic job’”.
A New Model For Homes // 19
10,000 NEW HOMES
Work is now underway on the development of the stunning phase 2 building of East City Point which will offer a selection of 1, 2 and 3-bedroom apartments plus 3-bedroom houses. The homes will offer a superb specification as standard, including stylish kitchens, bathrooms and flooring fitted throughout, and are aimed at occupiers who want to move straight in without having any work to do. From the very early stages of the scheme, The Completely Group has been working with Countryside on the design identity and marketing collateral for East City Point. Completely’s Glen Smallwood comments: “Projects such as East City Point represent a growing specialism for us as a marketing agency. “The brief for this project encompassed finding an identity that reflected the up-and-coming nature of the location. Canning Town falls within the ‘arc of opportunity’, an area encompassing Stratford and the Olympic Park. It’s seen as having huge potential for investment and growth. “The name focuses on the location; the key selling point in the marketing of the development. We designed a logo that features an illustration of an idealised London skyline. We used a vibrant pink to ensure the development brand cut through the crowded London property market.
“The development launch was an amazing success with eight reservations taken on the first weekend. However, the most gratifying aspect of the project is how all the elements – the homes, the school, the new identity for the area – have all come together to create something special.”
480
SCHOOL PLACES
Phase 2 of the scheme will offer a selection of 1, 2 and 3-bedroom apartments.
And that is perhaps the best lesson that can be taken from East City Point: that successful housing development needs to be about much more than just building homes. As Sir Richard Wales observes: “What gives me most satisfaction is coming back to the development and seeing people living here, kids being educated at the new primary school in a really enjoyable environment. “There’s a heart to this place, there’s a real community now and people love being here.” For more on East City Point, visit www.eastcitypoint.com
There’s a heart to this place, there’s a real community now and people love being here [different] Autumn 2015
20 // Agent Viewpoint
BOOM POPULATION
COULD DOUBLE LONDON HOUSE PRICES
Matt Sharman looks at what the rapid expansion in the number of people living in the Capital will do to the housing market
Matt Sharman is Head of Residential at Levy Real Estate.
The London residential market is undoubtedly moving into a new phase of the current cycle.
However, it is important to consider London’s position in a more international context and the implications thereof.
As has been widely trailed in the media, the super-prime end of the market has cooled – although in terms of the ‘heat’ of demand it has perhaps simply moved from hot to warm. However, it would be wrong to extrapolate what is happening at the uppermost end of the market across the whole of the capital’s residential sector, in particular the pricing point of £600-£1,000 per sq ft.
In GDP terms, the UK is presently the second largest country in the European Union, Germany being the largest. However, Germany’s population – currently 82m – is projected to fall to 80m by 2020, and, amazingly, to 64m by 2060. Over the same period, the UK’s population is expected to rise from 64m to 80m. Taking account of these population changes and assuming current economic growth levels are maintained, the UK should overtake Germany as Europe’s largest economic powerhouse sometime between 2025 and 2030.
A great deal of market commentary has been stressing the demand side of the equation: cheap mortgage availability, overseas buyers, infrastructure improvements, an improving employment market and rental demand. It is also well known that London’s population is growing, with one million people added in the last ten years. [different] Autumn 2015
As the largest economy in the EU, London’s place as a global hub will be further enhanced. More global companies will seek headquarters in London; new talent will be attracted to the London jobs market; global investors
// 21
LOCAL AUTHORITY HOUSEBUILDING TARGETS IN LONDON Local authority housebuilding is an important component in meeting the Capital’s residential needs. The GLA’s London Plan requires each borough to hit a home building target each year. This table shows the GLA requirement for each borough and, what in practice, was delivered each year from 2004-2013. Borough
2015 London Plan Minimum Target
Average annual net completions (2004-2013)
B&D
1,236
505
Barnet
2,349
994
Bexley
446
336
1,525
846
Bromley
641
676
Camden
889
716
City of London
141
116
Croydon
1,435
942
Ealing
1,297
912
Brent
will be hungrier to own British stocks; and the UK will have a much more powerful voice in European politics.
798
499
Greenwich
2,685
1,285
Hackney
1,725
1,449
Ham & Fulham
1,031
607
Haringey
1,502
741
593
513
1,170
460
In simple terms, this analysis suggests that official forecasts dramatically underestimate the number of new homes needed in London over the next 20 years. This, in turn, begs the question: where are we going to find space for twice as many new homes?
Hillingdon
559
931
Hounslow
822
930
1,264
1,705
K&C
733
188
Kingston
643
320
In London, the redevelopment of brown field land is going to play a vital role in meeting this demand. The redevelopment of West End offices into super-prime homes has grabbed the headlines to date but it is actually away from the bright lights where new development is going to make the biggest contribution.
Lambeth
1,559
1,113
Lewisham
1,385
884
411
518
Newham
3,076
1,140
Redbridge
1,123
605
Richmond
315
423
Southwark
2,736
1,501
The Mayor’s office is currently predicting the capital’s population will rise by 1.4m to 10m by 2036. However, when taking account of anticipated socio-economic changes, recent research from Oxford Economics suggests that London’s population will in fact rise to around 11m in the next 20 years and that average house prices in London will double to £1,000,000 by 2030.
Because Levy specialise across both the residential and commercial sectors, we are seeing first-hand the myriad of opportunities that the redevelopment of business premises can present. The task of finding homes for another 2m Londoners is a daunting one but if you are prepared to look in some perhaps unexpected quarters then there is supply, and population growth will guarantee that there will most definitely be demand.
Enfield
Harrow Havering
Islington
Merton
Sutton Tower Hamlets Waltham Forest
363
432
4,195
2,291
962
531
Wandsworth
1,812
1,174
Westminster
1,068
822
42,389
27,106
London
[different] Autumn 2015
22 // Keeping it Brief
ALL THE NEWS THAT FITS
OK, we’re half way through the magazine so here’s the commercial break: a brief update on what we’ve been up to recently at The Completely Group…
CHANNELLING NEWRIVER We are using the CompletelyRetail.co.uk platform to market our £1 billion portfolio to the site’s 135,000 monthly visitors.
NewRiver Retail, one of the UK’s largest and leading owner/managers of shopping centres, is the latest major property investor to use The Completely Group to deliver their property marketing strategy. NewRiver is a retail specialist investor, asset manager and developer and since its inception in 2009, the company has built up a high quality, geographically diverse portfolio, that attracts more than 126 million shoppers to its centres annually. Working with some of the UK’s best in class retail operators, the NewRiver portfolio spans 6 million sq ft and has an occupancy rate of 96%. Testimony to its performance and growth, NewRiver was named Retail & Leisure Property Company of the Year at the 2014 Estates Gazette awards.
[different] Autumn 2015
Lucy Mitchell, Marketing Manager at NewRiver Retail commented: “The Completely Group’s unique integrated offering is an efficient and dynamic route to market for us. It’s great to have our whole retail portfolio, from our 29 shopping centres to 19 retail warehouses and 16 high street assets, at our fingertips allowing us to present opportunities to retailers, agents and key stakeholders. The Completely Group team have been fantastic and we are very pleased with the final output.” Part of the NewRiver package included the commissioning of a series of iPDFs which allow their asset plans to be viewed in easily-updated smart, interactive iPad presentations. NewRiver are also rolling out an XML feed direct from the Completely site to update property details on their own website and that of their shopping centres in real time.
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Merger means changes on Completely Retail The recent merger between Cushman & Wakefield and DTZ has meant a new look for dozens of shopping schemes listed on CompletelyRetail.co.uk Completely’s Isabel Perez-Major reports: “Once the merger was finalised, we had to update all Cushmans and DTZ listings on the site plus three microsites, various static pdfs and iPad compatible iPdfs. “In total, we amended the look of 36 DTZ, 52 C&W and added 10 Scottish shopping scheme listings on the sites and the other collateral in less than a week.” The new Cushman & Wakefield is now one of the largest real estate service firms in the world with 5,000 people across 40 markets in the EMEA region alone.
GETS A NEW LOOK The Completely Group has created new corporate branding and a redeveloped website for specialist London retail and leisure property consultancy, Smith Price. A full brand audit was carried out prior to creating the new brand which also encompasses stationery, sales literature and signage. Smith Price Partner, David O’Keeffe, comments: “The new website has created an online platform which reflects the range of services we offer and also provides a comprehensive property search area which is automatically updated by our listings on completelyretail.co.uk. “The result has been a fresh new look for our firm and much more efficient process for marketing client properties.” View the new website at www.smithprice.co.uk
RECENTLY WON MANTLE DEVELOPING
RETAIL MARKETING CAMPAIGN WINS TOP AWARD The Completely Group was the proud recipient of the award in the Best Marketing Campaign: Retail, Leisure and Hotels category at the 2015 Property Marketing Awards in June.The award recognised the marketing campaign devised for Colliers International who instructed The Completely Group to produce the collateral promoting the sale of The Centre Shopping Centre and Almondvale Retail Park in Livingston, Scotland. The assets were being marketed on behalf of Land Securities
and sold for £224m – a price well in excess of expectations. The quality of the marketing material was acknowledged as having contributed to the result. Pictured are the BBC’s Steph McGovern, Ben Parer, Creative Director of The Completely Group, who received the award accompanied by Isabel PerezMajor (Senior Account Manager) and Stuart Meades, (Senior Designer) together with James Watson, Colliers International’s Head of UK Retail Investment and Michelle Greeff from Hobs Studio.
Mantle Developments has instructed The Completely Group on three new developments, eight luxury detached homes in Selsdon, town centre apartments in Epsom and a development of apartments in Purley. The Completely Group will be creating names, identities, brochures, signage and advertisements for the three sites.
SAVE THE DATES COMPLETELY RETAIL & LEISURE MARKETPLACE
23.02.2016 DUBLIN
26.04.2016 LONDON
27.09.2016 LONDON
WATCH MAGAZINE
The Completely Group has won the work to design the internal magazine ‘Happiness’ for high end French wrist watch manufacturer Audemars Piguet in a competitive pitch.
NEW WEBSITES
GAMA Property has chosen The Completely Group to create their new corporate website. The north London company selected us for our property know how and topnotch digital capabilities.
DEXTERS
Dexters is the fastest growing estate agency business in London. The Completely Group has been working with Dexters on their re-brand which is being rolled out in anticipation of a London launch campaign which is now in development for Spring 2016.
[different] Autumn 2015
24 // Completely Retail Marketplace
FEEL THE BUZZ AT COMPLETELY RETAIL & LEISURE MARKETPLACE The retail and leisure world will once again descend on London’s Old Billingsgate for the latest Completely Retail & Leisure Marketplace. We take a look at what will be happening on 29th September.
“There’s always a special buzz at the September event,” says Completely’s MD, Dom Millar. “Everyone’s recharged after their holidays and are full of energy and ideas. And the show comes on the verge of the all-important run-up to Christmas trading: it’s a time to make decisions and get key deals done.” More than 2,000 people will be attending the event on September 29th and will be able to network around 100 exhibition stands.
“People who have been coming to the show for some time are now very attuned to the format, and those who visit for the first time quickly see that it’s an environment where you can make contacts and do deals,” says Millar. The massively popular Soapbox sessions in which expanding brands have three minutes to pitch their property requirements is back again with a bigger and more diverse range of businesses. The September event will also feature a new series of retail talks and debates facilitated by Estates Gazette. “It’s the best mix so far,” says Millar “Delegates can target key contacts and also learn more about new entrants to their sector and how trends are shaping the marketplace. It’s a fantastically efficient use of a day at work.”
[different] Autumn 2015
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THE SHOW SCHEDULE 8am:
Exhibition open to exhibitors
9am:
Exhibition open to all delegates
9.45am:
NEW! Retail & Leisure Talks (in association with Estates Gazette)
11am:
Soapbox session 1
12pm:
Lunch with food provided by Bella Italia, Wrap Chic and Tortilla. Beer by BrewDog.
2.30pm:
Soapbox session 2
4pm:
Drinks reception sponsored by [different] magazine
7pm:
Show closes
WHO’S NEW AT COMPLETELY RETAIL & LEISURE MARKETPLACE? The show continues to attract a growing number of exhibitors from across the retail and leisure sectors. Sponsors Cushman & Wakefield, Lidl, H&M, London & Cambridge Properties, Westfield and The Gym Group will be joined by new exhibitors at the September show including: ☛☛ Dixons Carphone ☛☛ Peel Retail Parks ☛☛ Travis Perkins ☛☛ London and Cambridge Properties ☛☛ Redcar & Cleveland Borough Council ☛☛ Post Office in a Box ☛☛ Carter Jonas ☛☛ Bouygues Development ☛☛ The Lexicon ☛☛ The Crossing [different] Autumn 2015
26 // Completely Retail Marketplace
THE SOAPBOX SESSIONS It’s the fastest way to check-out some of the quickest growing names on the retail and leisure scene. The Soapbox Sessions will take place at 11am and 2.30pm.
JOIN THE DEBATE
During the show, the Estates Gazette is chairing debates around the subject Retail Talks: as retail and leisure chains are on the march again, how should the market react? EG editor Damian Wild is set to chair a discussion with prominent panellists at this year’s Completely Retail & Leisure Marketplace: chains are once again on the march. The Casual Dining Group snapped up Las Iguanas in July and wants to grow all its brands – Bella Italia, Café Rouge and Belgo. Pep & Co launched in July and has a target of 50 stores by October, while new Australian entry Smiggle is looking for up to 250 UK stores – it is currently opening a store a week up until Christmas. But how should the property industry react? Should it be worried given the trend of the last few years with chains contracting? What space do the growing chains need and want? Are they preferring shopping centres or is their growth going to help revive the flagging high street? But what lessons have been learned from previous chains contracting? And is it better to be a growing leisure chain than a retail one given the growing dominance of leisure in shopping centres? Come along, hear the experts and share your views.
[different] Autumn 2015
We asked the show’s Events Manager, Becky Sawyer for a few tips on how to get the most out of the Completely Retail & Leisure Marketplace. Here’s what she recommended. BE PREPARED AND GET CONNECTED: Know who you want to meet with on the day. Use our online delegate system CONNECT to ensure your meeting with all the right people. DON’T FILL UP YOUR DIARY TOO MUCH: save enough time for spontaneous meetings, there are enough people there to fill your day. SPEAKER SESSIONS: don’t forget to check out the Soapbox session and the new retail talks which will be facilitated by Estates Gazette during the show. DO YOUR RESEARCH: optimise your time check out all the information on schemes, properties, agents & landlords on www.completelyretail.co.uk HAVE A GREAT NIGHT AFTER A GREAT DAY: the show is finished by early evening so why not invite some key contacts for dinner or a drink afterwards and keep the networking – and fun – going?
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This sentence is being reproduced in Bodoni 72 Oldface typeface. We often take the styling of text for granted but it is a major influence on how we respond to the printed word. Unfortunately, the screen-based digital age is not quite as accommodating to these nuances. Ben Parer, Completely’s Creative Director looks at how to reconcile the beauty of the book with the omnipotence of the screen. [different] Autumn 2015 2014
28 // Reading Type in the Digital Age
I frown and can’t contain my disgust at what I’m seeing on screen. I’ve crafted an advert that’s text-based and uses a traditional serif typeface with classic lines and is easy to read. It sits beautifully with the black and white silhouetted photograph we’ve used and I’ve complemented the heading with a splash of blood red. I’ve laboured on nuancing the letter kerning on each combination and nudging the leading until I’m satisfied.
Then I handed it to the web developers to produce an emailer for an email blast. Blast, indeed! What happened to my lovely serif font? “It’s digital”, I’m told, “things operate differently here: it has to be easy to read on a screen”. I’ve heard it all before of course, so I funnelled my rage into making the developers life hell for the next hour by insisting on subtle changes. Rather like a dysfunctional marriage, we bickered on until mutual frustration brought us to a standstill. It got me thinking though. Surely the introduction of retina screens to devices has meant that they are pretty close to achieving print resolution? So do we still have to use a sans serif font for digital type reproduction? Phil Garnham, Type Design Director at Fontsmith doesn’t think so. He’s spent 13 years designing and building typefaces for global branding and editorial projects, and thinks the digital norm is a hangover from a previous age. “I understand the rationale that a developer would prefer the clarity of sans letterforms over the detailed nuances of a serif letter when writing code. But this thinking has been born out of lower resolution monitors, when simplicity of form at smaller sizes was key.” Last year the communications regulator, Ofcom, reported that UK adults spend an average of eight hours and 41 minutes a day looking at media devices. Three hours and 52 minutes is on television, but that’s still four hours 49 minutes on the computer, laptop, smartphone or tablet. While research carried out by marketing agency Tecmark indicated that the average Britain picked up their phone 1,500 times a day. That’s a lot of eye straining if you’re not comfortable with the font of choice on-screen.
[different] Autumn 2015 2014
Amazon recently released a new font called Bookerly for its Kindle devices. It’s been designed with on-screen use in mind, specifically for sustained reading and takes fatigue into account. According to Amazon, it reads 2% better than other fonts on speed, comprehension and emotional acceptance. Garnham is a bit sceptical about these claims. “How do you calculate emotional acceptance? Bookerly is a
Are Arial and Helvetica the best choice to be reading for two and a half hours a day? nice serif book typeface. It follows the design principles of great book type design that has evolved over hundreds of years. There are plenty of other great book typefaces out there”. Have there been any great advances in typography in the digital age? “The biggest advantage for type designers generating bespoke fonts lately has been the ability to test directly onto the device and amend the design accordingly. Testing in context is the best way to achieve a form that meets its intended function.”
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Apex
Bowl or loop
Diagnal stroke
Serif
Spine
Hook or arch
Horizontal stroke
Stroke contrast
CAP HEIGHT
Ear Arm
Eye
Counter
ASCENDER LINE
Ascender Extender
Glyph width
Terminal
X-HEIGHT
Stroke axis Aperture Link or neck BASELINE
Horizontal stroke or crossbar
Bracket
Spur
Loop or Bowl
Leg
Tail DESCENDER LINE
Loop
Hoefler & Co has been doing just that with their ScreenSmart fonts which have been designed within the browser using their WebKit layout engine and are delivered on a cloud typography platform. It means every browser and every platform (Windows/Mac) is delivered in a completely different font, playing to their strengths and weaknesses, but always optimised for quality. They’re not alone though as it seems every foundry has web-ready fonts from Google and Adobe to all the boutique firms. What about email though? The average office worker is spending over a quarter of their time reading emails. Are Arial and Helvetica the best choice to be reading for two and a half hours a day? “Email font use is always tricky and quite a hazardous thing to play with,” Garnham tells me. “Our recommendation is to always use a systems default font. I use Arial and quite frankly, it’s an awful text typeface. The letter shapes are ambiguous and modular in construction, making them hard to define when reading. “For lengthy emails, I would recommend a Jonathan Hoefler designed font, Georgia. Each character is elegant and defined, there is a balance and harmony in its forms while the spacing aids reading.”
Stem, main or vertical stroke
Tail
Descender/Extender
A quick poll around our office concurs with, Verdana and Calibri thrown into the mix as fonts with more open spacing than either Arial or Helvetica. Higher resolution screens means that the antialiasing edges of fonts appear crisper and allow clearer definition and spacing of characters. This in turn enables a greater range of fonts to be used. Many of the arguments against the screen use of certain fonts do not hold water any more. Garnham observes: “With font selection, context is key. I have replaced the Mac’s Helvetica system font with a slabface font by Font Bureau called Input. It’s more economical in terms of line lengths than Helvetica and that’s handy when it comes to browsing complex directories on our project servers. “It’s clear from the research that open shapes and monolinear letter lines improve legibility, character recognition and the speed of reading on screen. In terms of font weight a light to regular font appears easier to read at smaller screen sizes as they follow the pixel grid to define shapes clearer without any filling in of internal letter shapes. “With screen resolution improving, the possibilities for on-screen typographic expression are widening and the reliance on sans serif forms specifically for technical reasons will soon be a thing of the past.” It seems we are closer than ever, if we aren’t there already, to achieving a screen resolution which frees us for the use of all typefaces on screen – including serifs. Armed with these new found facts, I’m off to see the digital developers. As a peace offering, I’m going to offer up the font Input for their coding delight, but I’ll insist on my font of choice for the email blast after that…
[different] Autumn 2015
30 //
Windows: default font
Email font alternatives
Arial
ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz1234567890
Try some of suggested standard system fonts within your email client to see what feels right for you.
Georgia
ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz1234567890
Macintosh: default font
Helvetica
ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz1234567890
Verdana
ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz1234567890
Calibri
ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz1234567890
Bookerly
Ben Parer is Creative Director at The Completely Group
ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz1234567890
Input
ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz1234567890
Glossary of terms Leading Is the vertical line spacing and refers to the distance between the baselines of successive lines of type.
[different] Autumn 2015
- hypen The width of a lowercase n and is used to join words and syllables.
Kerning Is letter spacing and is the process of adjusting the spacing between characters in a proportional font.
– en dash The width of an uppercase N. Traditionally used between ranges but the current trend is to use it as an em dash would be used.
Serif font Serifs are details on the ends of some of the strokes of characters of a font.
Ligatures A set of characters that have been designed to aid legibility like ff.
– em dash The length of an uppercase M. Used to demarcate a parenthetical thought.
Sans Serif font Is a font without serif details. They are often referred to as ‘Grotesque’ or ‘Gothic’
Point size The metric measurement of type size. A point equals 1/72 of an inch.
// 31
AN AMAZING RIDE More than 100 fit, healthy and ready to go property cyclists turned up at Clandon Regis Golf Club to ride the Surrey Hills in the second Completely Amazing Bike Ride. Ably supported by CYCLE TO… and raising money for Coram, which helps improve the lives of disadvantaged young people, the day was a great success. Completely’s Event Organiser Shelley Batey said, “The sun was shining, everyone enjoyed themselves, was safe and enjoyed one of the two great routes we had today. “Both routes had three DBMax timed sections which gave a competitive edge for some, while the chaperoned format still allowed for the networking element that was so well received last year. “We had great support from Barton WIllmore who sponsored the sports bottles and the five companies – CSP, Linklaters, Green & Partners, DWD and PegasusLife – who entered teams of ten and sported bespoke branded jerseys.” Plans are already a already afoot for our 2016 event – watch this space.
Photos: ©5311Media/ Huw Williams
[different] Autumn 2015
32 // The Rise Of The Shed Shop
The rise of the shed shop Instead of buying High Street shops, shopping centres or retail parks, a growing number of investors are snapping up the logistics warehouses which serve both physical and online retailers. We looked at who’s buying what and why.
[different] Autumn 2015
// 33
so for 25 to 30 years. Their warehouses just served the High Street and that was it. Those same warehouses are now being challenged to do internet delivery, convenience store delivery, High Street delivery and they can’t do all of that so they are investing.” Webster says the additional retailer demand for logistics is partly being fuelled by globalisation which is bringing to the UK fresh on- and off-line brands which need new supply chains. A side effect is the peer pressure this exerts on existing retailers who feel the need to ‘keep up with the Joneses’. Continued urbanisation, particularly in the South East, is also driving demand for convenience stores whose operational needs demand dedicated supply chains.
Retailing, whether it’s in the ‘real world’ or online, is increasingly dependent on logistical fulfilment from massive warehouses in strategic locations. While investors have always been attracted to ‘Big Box’ logistic opportunities, the growth of internet retailing is supercharging the sector. Whereas the development scene in the retail, office and industrial sector might still be relatively sluggish, in the logistics sector it is being fuelled by huge demand from occupiers. According to research from JLL, during the first half of this year, occupiers committed to 8.5m sq ft of Grade-A logistics floor space. Six deals were for buildings exceeding 500,000 sq ft, including two of 900,000 sq ft. Most of these facilities went to a varied group of retailers, among them department store John Lewis, outlet store TK Maxx, home furnishings group Dunelm and online-only retailer Ocado, a virtual supermarket, and Amazon. Other space was taken by third-party logistics operators such as Clipper Logistics whose 342,000 sq ft unit will service a contract with clothing retailer Zara.
The currently relentless demand for warehouse space from occupiers is, self-evidently, one of the main attractions for investors. According to figures released by DTZ just prior to its merger with Cushman & Wakefield, the second quarter
12 to 18 months ago, there was a sudden meltdown in the foodstore supermarket sector of 2015 was the eighth in succession in which more than £1bn was invested in industrial property in the UK. The first half of 2015 saw £2.5bn spent on industrial property, most of it logistics space and most serving retailers’ supply chains. US investor Blackstone’s European logistics property arm, Logicor, paid £388m for a portfolio bought from Anglesea Capital and Oaktree while home-grown Tritax Big Box REIT spent £409m in eight deals. The new interest in investing in distribution buildings has to some extent occurred at the expense of investment in actual retail space, particularly supermarket assets. Colliers’ Head of UK Retail Investment James Watson explains: “Foodstores were attractive because of the long-dated income and strong covenants and the RPI accelerators that they offered. They were seen as very low risk.
Cushman & Wakefield’s Head of National Logistics Mark Webster observes: “For a number of years retailers didn’t invest in their supply chain at all – a number of retailers that are active now haven’t done
[different] Autumn 2015
34 // The Rise Of The Shed Shop
Logicor’s 257,855 sq ft GT257 warehouse facility in Bardon, Leicestershire has been leased to Amazon for 10 years.
“Then, around 12 to 18 months ago, there was a sudden meltdown in the foodstore supermarket sector brought on by a number of factors including competition from the discount stores and the internet as well as over-expansion.” Add to this the profits crises among the supermarket chains and investors were starting to worry about their exposure to food retailing assets. This was a further factor which guided more buying power towards the logistics sector. Retailers are now actively investing in their supply chains. Mark Webster comments: “Some of the best companies in the UK are taking bigger buildings than they have for many years.” Another draw is the length of lease to which such retailers are prepared to commit to because of the substantial capital investment that fitting out and automating a warehouse entails often dwarfs the rent. More than half of LondonMetric’s portfolio is logistics property. They have been assiduous buyers in the [different] Autumn 2015
sector, and Property Asset Director, Mark Stirling, says that the almost bond-like characteristics of distribution buildings are a major attraction. “It’s probably the only sector in the market where you’re still able to get 20 to 25-year income with fixed kickers – about half of our distribution portfolio has got fixed uplifts in some form or other.”
We don’t have a void period, we don’t have service charges and we don’t have marketing costs. What you’re receiving gross is a net yield. We love that. He explains that whereas with other property types the net rental income is diminished by the capital expenditure required in order to maintain a long-term income flow, distribution buildings don’t require the same level of “defensive capex”. “We don’t have escalators to replace and we don’t have any empty rates. We don’t have a void period, we don’t have service charges and we don’t have marketing costs. What you’re receiving gross is a net yield, we love that.”
// 35
The yield obtained on logistics property has become more attractive too, especially as it has been compressed as values have escalated. “We have seen quite a big shift in yields, probably 200 basis points during the past 2-3 years,” says Delin Capital Asset Management Chief Executive, Christian Jamison. The company was founded specifically to target investments in the logistics sector. “We started investing in Q4 2012 when prime yields were 7.5 and 8% and I would say prime yields are now 5.5 to 6% and when I say prime yields I mean those on assets with 10-plus years of income”
Colliers International’s Head of Industrial and Logistics LenRosso reports: “We’re finding that the supply is massively diminished and the rents being achieved are generally 40% higher than in the last boom, and that’s not just on brand new space, it’s a combination of brand new and second hand”. Rosso says that even in a good market in the South East there was usually three to four years’ supply in evidence, but that has now dwindled to three to six months owing to the current lack of speculative development. It seems the balance of supply and demand very much favours the landlord at present and that must be good news for investors. The rise of the ‘shed shop’ has some way to go.
He points out that there have been some sub-5% yields on big sheds with 20-plus year incomes to good covenants. “That is almost like a bond but 20 to 25-year income is not typical.” Few other sectors have seen yields move quite so sharply but Jamison says rental growth has traditionally been elusive and held the sector back. However, even here there are now positive signs. [different] Autumn 2015
36 // Monopoly Network
Getting
Network Coverage
Networking organisations like The Monopoly Network are effective – and enjoyable Photos: Sebastian Bednarski
[different] Summer 2015
// 37
Everyone knows that networking is important in business but you have to devote your time wisely. Otherwise you can end up in very convivial surroundings, but without any prospect of the networking contributing to your business life. It was for this reason that the Monopoly Network was set up in 2010. Founder member, Simon Millar of Lockton Real Estate & Construction, recalls: “There were four of us who would often run into each other at events and bemoan the lack of a networking platform which could effectively bring together people who had mutual business interests in property. We thought we would do something about it”. Five years on, the Monopoly Network is a property networking group with a highly experienced and diverse membership, including developers, investors, end-users, contractors, consultants and lenders which brings together industry knowledge and business opportunities for all who attend. The group meets on a monthly basis at venues around London, as members and guests move around the virtual Monopoly board, often with guest speakers or a particular sector focus. Millar reports: “This creates a vibrant environment in which to build relationships, exchange information, learn about and uncover new opportunities in all sectors of property development and the investment market”. The group regularly organises visits to prestigious London developments – often ahead of completion – and has been on-site at schemes such as the Olympic Stadium, Battersea Power Station and One New Change. There are now 30 companies involved in the organisation and potential new members are considered annually. Simon Millar comments: “Growth has largely been as a consequence of people asking to join. Hilton Hotels were invited to participate in a hotels debate panel, and liked it so much that they wanted to become a member. “Similarly Argent, Grosvenor and Lloyds Bank were all invited to various events, really liked the format, and then asked to become members.” The Café de Paris throbs with the sounds of the DJ to the wee hours.
which raised around £30,000 for Scotty’s Little Soldiers – a charity which supports the children of fallen servicemen and women – and also for Stephanie Millward, a paralympian swimmer who is going for gold at the Rio Olympics.
There’s more information about the Monopoly Network at www.monopolynetwork.co.uk
The Network recently held its second Charity Ball which saw around 300 guests gather at the Café de Paris for an evening
Top right: The Globe Girls and cross dressers from office/hotel developers Platform led by Monopoly Network member Alastair Smith. Middle right: Simon Millar chats with past England rugby Internationals George Chuter and Louis Deacon.
[different] Autumn 2015
38 // DBA Magazine
THE MAKING OF A MAGAZINE When the Design Business Association wanted to showcase the best in UK design with a new magazine of style and substance, it turned to The Completely Group. In the same way that online retailing is now integrating with physical shopping environments, we are now seeing hard copy magazine publishing complementing digital communication platforms. Right now you’re either holding a hard copy of [different] or have found this article whilst browsing the digital version of the magazine. Ben Parer, Completely’s Creative Director, comments: “It’s great to be able to view something on a PC, mobile or tablet, but holding a magazine in your hand – feeling the quality of the paper and the finish – is a qualitatively different experience. “Bespoke b2b magazines build a relationship with customers who are more likely to perceive you as thinking innovators and use your services. “The printing process even gives a magazine its own scent, and that’s something you can’t experience via a screen – or not yet at least!”. So when the Design Business Association was looking for something with which to communicate with its membership, it was telling that it chose to publish a major new magazine. The association exists to promote professional excellence through productive partnerships between commerce and the design industry by championing effective design which improves the quality of people’s lives. The new magazine, Design in Business, showcases how design can have transformational effects on business by delivering value. Parer reports: “Our creative team brainstormed ideas based on what the DBA does and what its aims are. Concepts touched on the notion of perception, or revealing knowledge, which is what the DBA is all about. This idea shines through as part of the final conceptualisation, with vibrant yellow blocks highlighting information throughout the magazine”. [different] Autumn 2015
Once the creative brief was agreed, The Completely Group worked with three print production suppliers: Hardings Print Solutions, Celloglas and Denmauer Independent Papers. “We selected some stunning metallic finishes and luminous inks to bring the concept to life, but ran into issues when the paper selected proved to be a challenging combination with the ink. However, what could have been a frustrating setback was instead turned into an opportunity for collaboration and team work. Our suppliers worked with our Production Manager, Mark Bailey, to overcome the problems we were facing.” Hardings Print Solutions organised paper sample testing and applied a special
The production team discuss paper and finishes.
// 39
What could have been a frustrating setback turned into an opportunity for collaboration and teamwork
coating to the chosen stock – Denmaur’s Fabriano Cocktail Whitelady – to improve the finish while Celloglas delivered the silver and black foil finish which gives the magazine its distinctive cover. The first issue which featured interviews with leading figures in the design world, case studies on pioneering design projects and ‘How to’ articles was enthusiastically received by the DBA membership which more than 6,000 professionals at companies such as Barclays, BBC, Diageo, GSK, Nestle and Waitrose.
The DBA’s CEO Deborah Dawton comments: “We were excited about working with The Completely Group on the first edition of Design in Business. Ben and his team really got to the heart of what the DBA is all about and pulled out all the stops to deliver the project from concept to finished publication. We are looking forward to the next issue already”.
Issue 1 of the DBA’s magazine Design In Business.
Magazine publication brings together the very different strands of content generation, design and production which can create a unique experience for the reader. Ben Parer comments: “Producing a hard copy magazine that is stimulating to the reader and which shows design excellence is a tremendous challenge, but it can deliver a level of engagement and message about value which cannot be replicated through other collateral”. Copies of Design in Business can be ordered or downloaded from the DBA website at dba.org.uk [different] Autumn 2015
A DRINK WITH…
MARK BOURGEOIS
40 // A drink with
[different] Autumn 2015
Mark Bourgeois is an Executive Director at Capital & Regional, the specialist retail and leisure property company. In addition to his day job, he will be the next President of the British Council of Shopping Centres. He met up with Completely's Dom Millar to talk about shopping centres, his presidency and taxidermy.
Good to see you, Mark. What are you drinking? Pint of Orange Juice and Lemonade please, Dom… and less of the incredulous expression please…It’s that or a decaf latte.
How are your shopping centres doing? Shoppers spending more? Things are good. Sales are up 1.7% to the half year. Shoppers are feeling confident and occupiers are responding with more active requirements. We’re also in a really good place with online – click and collect is taking hold with 70% of our shops offering the service and we're operating a Collect+ desk across the business which our customers love.
The company’s approach to leasing has got results with footfall up and voids down. What’s the secret? No secret. Just lots of hard work from the whole C&R team. We're lucky to have a group of very talented people who really understand how to create and sustain great retail environments. Doing the whole thing in-house gives us a huge advantage too – keeps us close to our occupier partners and the communities in which we do business.
What’s the strategy going forward? More shopping centres or will the company move more into leisure? Our centres have in fact been evolving beyond retail for some time now – so far this year we've let to restaurants, a cinema, a hotel, offices, gyms and we've some exciting residential developments being planned. So our strategy is to invest in and evolve our existing schemes, whilst looking to expand through acquisition – there are plenty of centres to go at out there.
// 41
When you were young, did you ever think that one day you’d be a President? Or were your dreams more of the footballer, rock star, train driver variety? Quite fancied taxidermy actually.
How does the BCSC presidency work? What’s the main focus of the role? BCSC comprises 2,500 members, who are served by 15 or so full time employees led by newly appointed CEO, John Coyne. The President, along with the Executive Board, oversees the strategy and operation of the organisation, supporting John and his team. It's a 12 month role, and during that time, I guess there are some ambassadorial duties too, i.e. one or two dinners!
What do you see as being the council’s central role today?
information and digital convenience, with consequentially increased leisure time. So the word "shopping" now covers a far wider range of activities.
Will you have a keep fit regime to combat the increased calorie intake from all the dinners you’ll have to attend? An extra mile or two on the bike may be required....
What do you find most stimulating about working in shopping centres? It's an enormous privilege to work in shopping centres – get it right and you can make a really positive contribution to the community in which you operate. That is hugely stimulating.
Shoppers are feeling confident and occupiers are responding with more active requirements
BCSC is there to provide business development, career development, and political influence for those involved in the retail property industry. It does this through delivery of events, awards and networking platforms, provision of research and education, and through influencing government policy. John and his team are getting down to the business of evolving the organisation to reflect the changing face of retail property – so watch out for further developments.
Does the definition of a shopping centre now have to be more widely drawn than a decade ago? Most definitely – it's been amazing to see how shopper behaviours have evolved – more
And what’s the biggest challenge? The 1954 act and business rates. Both impede the retail property market unnecessarily.
How do you spend your time off? Not shopping surely… Time off – what's that!? My wife and three teenage daughters love shopping and a trip to Leeds (our local) with them gives me brilliant insight for the day job – so yes I do like shopping. Other than that my family would say my downtime is spent as a porridge-eating obsessive cyclist, who drums badly in a ‘Dad band’, shoots the odd pheasant, catches the occasional trout and collects taxidermy.
Snack time: what do you fancy?
Mark and Dom met at The Phoenix in London’s Victoria. Just a short stroll from Buckingham Palace, it is a great place to go whether you want to eat, linger over a pint or are en route to the St James theatre next door. The large bar is a mix and match of tables and armchairs with space at the bar for those wanting to sample the real ales or a fine glass of wine. The menu showcases fresh seasonal ingredients whilst reminding us how good traditional British food can be. Upstairs is the private dining room which is ideal for meetings, dinners, drinks and more. Out the back there is a delightful garden for a light lunch or after work libation. The Royal Family have a delightful local.
The Phoenix 14 Palace Street London SW1E 5JA
020 7828 8136 thephoenixvictoria@geronimo–inns.co.uk
The warm Scotch Eggs here are amazing!
[different] Autumn 2015
42 //
PORTFOLIO SMITH PRICE WEBSITE The result has been a fresh new look for our firm and much more efficient process for marketing client properties. David O’Keeffe, Partner
www.smithprice.co.uk
PINNACLE BROCHURE
THE RAMSAY PORTFOLIO
KENSINGTON HIGH STREET
WISTARIA BROCHURE
KFC MAILER
600-606 KING’S ROAD
[different] Autumn 2015
The Secret Agent // 43
HOW TO AVOID ‘POOLSIDE SYNDROME’
For anonymity and the avoidance of a P45, the identity of the Secret Agent must remain hidden. Our mole in the property agency world is back from holiday and trying to turn ‘vacation visions’ into reality… “People think they get their best ideas on holiday!”
out in my mind a new profile-raising strategy for our property consultancy.
I’d been sitting in the infinity pool at the Chaa Creek eco-resort in the Belizean jungle contemplating the beauty of nature when my now companion slipped into the opalescent waters.
“The real problem,” he continued, “is that a lot of the ideas are not bad and the clients have all this post-vacation energy but then it just gets lost as they get back to work. In the meantime, we’ve gone off and progressed the strategy but it never gets actioned.
Brits can spot each other a mile off and he had soon chirped a cheery ‘Morning’ in my general direction. Following the routine pleasantries, he was now expounding his theory on the effect that holidays have on business strategy. He was an ad man from some mega West End agency with a name like Soup or Soap or Rope or something like that, and was warming to his subject. “We call it ‘Poolside Syndrome’: people get rested and by the second week of their holiday – instead of just chilling out – they’re making all sorts of marketing plans for their businesses. “As soon as they get back, they’re on the phone to us with their grand visions.” If it’s possible to blush in the tropical heat of a jungle then that’s what I was doing: only that morning I’d been lying by the pool mapping
“It’s Poolside Syndrome,” he shrugged, sipping ruminatively on a garish and very strong cocktail. I asked how the syndrome could be avoided. “The first thing people should be sorting in their mind is who is going to be responsible for implementing the strategy: who is going to own it. If you make someone answerable for the strategy then it will get done. It may be you, but it’s actually a lot more effective if someone else is tasked with it.”
A week later, the BYT placed on my desk a six-month plan for the campaign which they had fleshed out with our marketeers and PR advisers. It seems that my ‘vacation visions’ may be about to become reality…
post-vacation energy just gets lost as they get back to work
A Bright Young Thing (BYT) at my own firm immediately sprung to mind. I’ve now been back at work for a couple of weeks and the first thing I did regarding our new profile-raising campaign was not to call our marketing agency, but instead brief the BYT in question and make it their responsibility to develop the strategy.
[different] Autumn 2015
We are looking to open more stores Do you know a good site? Get in touch
email: new.sites@sainsburys.co.uk web: www.j-sainsbury.co.uk/about-us/property/
We have opened over 90 new convenience stores in the last year, more than any of our competitors. We run over 730 convenience stores and employ 16,000 people and have exciting, ambitious plans to continue growing in the future. Our Locals account for 40% of the UK’s convenience market growth, with sales of £1 billion and year-on-year growth of nearly 17%. Over 7 million customers shop in Sainsbury’s Locals each week and we were recently named Convenience Retailer of the Year for the fifth year running at the Retail Industry Awards. We are opening 1-2 convenience stores a week and are looking for more sites. If you know of an opportunity for a new Sainsbury’s Local, email: new.sites@sainsburys.co.uk or visit our website shown.
Flexible requirements: • •
Visible and accessible All sites, buildings and units considered
730
Convenience stores employing 16,000 people
• •
1,500 – 9.500 sq ft gross Backup and sales can be split over two floors
40%
Our Locals account for 40% of the UK’s growth market
• •
Leasehold or freehold Parking not essential, depending on location
£1bn
Sales of £1bn and year-on-year growth of nearly 17%