2 // A Different Message ISSUE #4 | WINTER 2015 EDITORIAL Editor: Duncan Lamb
DOM MILLAR
Managing Director The Completely Group
NEW YEAR’S RESOLUTION I feel 2015 will be an exceptional year for the property industry. But it’ll require plenty of resolve. Election years are always difficult; speculation dominates the run-up and there’s the ‘what now?’ period once the contest has been decided. The uncertainty an election year brings to business can be an excuse for delaying decisions. However, I don’t think that’s a luxury any of us can afford at present. I see definite opportunities in the market, but also fierce competition. Hesitation may mean you miss the boat. At The Completely Group, we’ve plenty in store for 2015. The inaugural Completely Retail & Leisure Marketplace in Ireland is our first major milestone. The Irish economy is currently resurgent, which is amazing given it was on its knees not so long ago. We have had a tremendous response to the event and that’s clearly because people see there being great opportunity across the water. This year will see us host further Retail & Leisure Marketplace
ART Creative Director: Ben Parer Design: Andy Fleetwood, and Matt Hardy Illustrations: Michele Patruno PHOTOGRAPHY Photographers: Paul Harmer, Murray Scott PRODUCTION Production Editor: Mark Bailey Printer: Hardings Print Solutions Finishing: Infinity Finishers, Unique MECHANICAL INFORMATION Cover Paper: Conqueror Connoisseur, 100% Cotton Soft White 300gsm. Cover Treatment: 4 colour process plus masthead embossing. Binding: Perfect Bound. Body Paper: Pages 3-16, 21-38 – G.F. Smith Zen Pure, 150gsm. Pages 17-20 – G.F. Smith Strathmore Pastalle Natural White, 118gsm. Fonts: Body text – Avenir Headlines & Specials – Aachen, Adobe Caslon Pro, Arquitecta, AT Rotis Semi Sans, Baskerville, Bebas Neue, Blenda Script, Clare BT, Clarendon, Dekar, Fanciside Caps, Hagin Caps, Microbrew, Minion, Nexa Rust, Novecento Slab, Old Letterpress, Optimus Princeps, Pluto, SUNN, Whitney Apps Used: Adobe CC PROPERTY LISTING & ADVERTISING SALES Phone: 0844 6626600 Email: sales@completelygroup.com CREATIVE & MARKETING SERVICES Phone: 01483 238920 Email: info@completelygroup.com EVENTS Phone: 01483 238924 Email: events@completelygroup.com ACCOUNTS Phone: 01483 238931 Email: accounts@completelygroup.com
events in London, further afield, and for other sectors, but the greatest changes will involve our digital solutions. Our online retail, office and industrial leasing platforms continue to expand, and we’ve new and
COVER Subject: We look at the emergence of street food at retail destinations (see p4)
innovative services to add. The improved platform will be essential for all property businesses seeking to connect with audiences and amplify their brands. Watch this space. Better still, give us a call and we’ll talk you through the new developments and how they can benefit your business and brands. Have a great 2015.
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 VAT no. GB 770788879 Company no.4321497
[different] Winter 2015
Contents // 3
04
Street food
24
The High Street ain’t dead
4 Cover story: Street credibility We look at the increasing use of street food in retail environments.
8 Completely Retail & Leisure Marketplace Ireland The best show in the business is heading to Dublin.
10
The Irish Tiger roars again
14
At the bar with Wetherspoon
17
On the paper trail
34
Digital advertising
17 On the paper trail Why hard copy documents still have a big part to play in the marketing mix.
21 The Completely Amazing Bike Ride 2014 Looking back on our inaugural bike ride.
22 Keeping it brief All the news that fits.
32 A drink with... Dom Millar catches up with L&G’s Andrew Ferguson to talk about the leisure sector, lease lengths and trampolining.
34 Finding gold by the road Wildstone’s Jonathan Chandler looks at the increasingly lucrative opportunities for digital roadside advertising.
10 The tiger finds its feet again 24 The High Street ain’t dead! 38 Portfolio The Republic of Ireland is bouncing back Rumours of the death of the High Street 39 The Secret Agent from recession and its property market is showing that there are better days ahead.
14 ‘Spoons’ aims for a bigger helping We speak to Wetherspoon about their major expansion programme.
have been greatly exaggerated says GVA’s David Hooper.
Our mole ponders the point of awards.
28 A message to the market The massive turn-out at last September’s Completely Retail & Leisure Marketplace was clear evidence of how these sectors are now emphatically on the front foot.
[different] Winter 2015
4 // Street Food
[different] Winter 2015
// 5
Prior to our new-found love affair with eating and drinking, shopping centre food courts were often depressing and perfunctory exercises in providing sustenance to shoppers. However, our increasingly cosmopolitan tastes and the rise of street food are now creating mutual benefits between small operators and big retail landlords. In recent years street food – usually defined as ready-to-eat finger food or drink sold in a street or other public place – has undergone a revolution. Not so long ago a British ‘street’ meal might consist of a fried sausage or egg bap from a road side van in a polystyrene carton, washed down with a mug of tea. Cost and convenience were the main motivation in choosing to ‘eat street’. Now, discerning ‘foodies’ have the choice of almost every cuisine imaginable provided by vendors who are passionate about the quality of their product. It is estimated that globally 2.5 billion people eat street food every day. While the sector is still relatively small in the UK it is growing fast. Figures from the Nationwide Caterers Association show that the street food industry has doubled in size every year for the past four years, with markets everywhere from Devon to Glasgow. Richard Johnson, food writer and founder of street food consultancy, British Street Food, says the growth in the sector can be put down to a number of factors, including a desire to get “back to basics” post-credit crunch, and a growing national interest in food. He set up his organisation in 2009 and launched the British Street Food Awards to celebrate the best vendors around the country the following year.
The first awards were low key: Johnson said that in 2010 “we struggled to fill a car park with really good quality vendors”. They now have 3,000 applicants a year. The early street food markets were deliberately unorganised, with traders using guerrilla marketing tactics to alert customers to their location. London’s Street Feast was a pioneering collective promoting “food raving” with a festival vibe. From this first wave the present day UK street food offer has become more accessible to the mass market with regular events held across the country. While it has expanded from its underground roots, the concept of ‘food theatre’ is still core to street food’s appeal. Its ability to make locations more vibrant and attract customers has led retail landlords to explore how they can use the sector within their food and beverage offer.
H [different] Winter 2015
6 // Street Food
Trinity Kitchen at Trinity Leeds
Land Securities was one of the first major landlords to really embrace the sector. In October 2013, the property giant launched Trinity Kitchen on the fourth floor of the Trinity Leeds shopping centre. Emma Lawson, Portfolio Manager at Land Securities explained: “We wanted to respond to the national trend in quality street food. Interest in the traditional foodcourt was waning, and we had the space, skills and means to achieve something special.” Described by Richard Johnson as a “complete game changer”, the 20,000 sq ft Trinity Kitchen provides customers with a continually evolving street food offer featuring five of the UK’s best street food vans, changing regularly throughout the year. In its first year it served 1.3m customers – an average of 25,000 per week. Lawson continued: “Trinity Kitchen opened a few months after the centre itself and we were able to see how its addition impacted on the energy levels and traffic at the centre. It has represented food and beverage’s rise up the shopping centre agenda, adding an important vibrancy and excitement to the centre.” Such is the success of Trinity Kitchen that street food is now being used across other Land Securities assets, such as Street Feast in Lewisham. Dealing with street food operators is not without its challenges for landlords. While vendors all share a passion for food, typically they don’t have a professional background in the sector and lack retail experience. Trinity Kitchen’s Rola Wala is a classic example. Offering a “British spin on India’s biggest street food flavours”, Rola Wala was set up by Australian Mark Wright inspired by his experience travelling [different] Winter 2015
in India. He acknowledges his lack of previous retail experience has meant a steep learning curve. To make street food work in a traditional retail environment Richard Johnson believes landlords have to be “bold and put in the investment”. Rola Wala has just opened its first permanent outlet and Mark Wright agrees, saying that Land Securities have “gone out of their way to support what we do and foster us as part of their offer”. One of the main challenges was how to bring the street food trucks and vans up onto the fourth floor of the centre. Rather than dismantle the vans that are so much a part of the vendor’s visual identity, a scissor lift was used to transport them up the outside of the building.
H
// 7
Land Securities isn’t the only major landlord embracing the street food sector. In October of last year, British Land launched ‘Eats from the Street’: piloting street food in its out of town retail parks. Street food operators offering everything from bowls of noodles to crème bruleé were accompanied by a restored red route master bus offering an unusual dining option.
Richard Johnson strongly refutes this, arguing that the commercialisation of the sector – enabling indoor dining, seven days a week accessible to the mass market – is essential for vendors looking to make a profit and grow their business.
Commenting on the pilot, Charles Maudsley, Head of Retail for British Land, said: “The new concept brought a fresh culinary experience to the park’s customers and forms part of our strategy to enhance the food and beverage provision across our retail portfolio.”
The Nationwide Caterers Association figures show that three-quarters of traders still operate just one unit. Contrary to what some people fear, the infiltration of the sector by High Street brands has not yet materialised.
British Land acknowledges there were challenges. One of the main issues was persuading leading street food operators to come to retail parks, which they did by initially giving free pitches. They also had to work hard to create an atmosphere that would encourage dwell time. There are some who worry that the involvement of big business in the street food sector will be its downfall, destroying the very authenticity that provided its appeal in the first place. After all, even Kentucky Fried Chicken now runs a street food truck.
It certainly seems that the assimilation of street food into shopping centres will continue unabated. The word on the street is that the developers of Battersea Power Station are considering the creation of a street food market with up to 60 vans on the third floor of the central building.
British Land’s Eats from the Street pilot has brought a fresh culinary concept to retail parks
[different] Winter 2015
8 // Marketplace Dublin
COMPLETELY RETAIL & LEISURE MARKETPLACE
COMES TO
IRELAND DUBLIN, 24TH FEBRUARY, 2015
In addition to many major Irish retail brands, around 100 non-Irish retailers are flying in on a specially chartered plane. The core sponsors of the event are: H&M, CBRE, Savills, Wetherspoon, Iceland and Chartered Land – a lineup which reflects the wide diversity of businesses who have been attracted to the show. Completely Group’s Simon Millar comments: “This is a perfect time to hold the inaugural Completely Retail & Leisure Marketplace in Ireland. The country’s economy is showing genuine signs of recovery and the retail and leisure sectors can play a major role in this”. In January, PwC’s Emerging Trends in Real Estate report for 2015 said that Dublin is the second best city in Europe in which to buy property. The report lists the capital’s strong rental market and resurgent capital values as reasons to invest here. The report commented: “Dublin remains in the number two spot for the second year running for real estate investment and development in Europe. “This follows a strong year which saw a wide range of investors jostling for opportunities. Dublin has strong rental growth potential based on low supply, coupled with employment growth. Business confidence has returned and Ireland’s GDP growth is expected to continue in 2015.”
[different] Winter 2015
// 9
Dublin is the second best city in Europe in which to buy property
More than €2.2 billion of real estate investment poured into Dublin alone last year. Simon Millar comments: “Ireland has a mature and dynamic retail sector which offers tremendous opportunities for retailers and property providers. “We are creating an event which brings the same vitality and market coverage to the Irish retail scene as Completely Retail & Leisure Marketplace has achieved at our London events. “With the Sunday Times, Estates Gazette and Retail Week confirmed as media partners the event is guaranteed to have a high profile and is also being supported by the Society of Chartered Surveyors Ireland. “Retailer interest in Ireland is running at high levels as the economy strengthens post-recession. I think this will be an enormously exciting and worthwhile event for everyone who wants to benefit from Ireland’s resurgence”. For more information on attending or exhibiting at the event, please contact Shelley Batey (08430 227333 or email sb@completelygroup.com).
Ireland offers tremendous opportunities for retailers and property Providers
Completely Retail & Leisure Marketplace London September 2014
Exhibitors at Completely Retail & Leisure Marketplace Ireland: AIB Arrow Asset Management Bannon Centra / SuperValu CBRE Chartered Land Colliers International Dealz Douglas Newman Good DTZ FSP
H&M HWBC Hines Iceland JLL Junction One Kennedy Wilson LSH Savills Ireland The Square Tallaght Wetherspoon
The CHQ Building, the venue for the first Completely Retail & Leisure Marketplace Ireland
[different] Winter 2015
10 // The Celtic Tiger
[different] Winter 2015
// 11
THE TIGER FINDS ITS FEET AGAIN The Republic of Ireland – the economic ‘Celtic Tiger’ – is bouncing back from recession and its property market is showing that there are better days ahead. At the low point of the Irish economy in 2012, an estimated 345,000 people – around 15% of the workforce – had lost their jobs because of the recession. However, since then more than 100,000 have got back into work, and this boost to spending power is now feeding through into a resurgent Irish retail market. Recent research by Savills suggests that the beneficial effects of falling unemployment will make a significant mark on retail property in 2015. “I think last year was the year in which we saw the first signs of real recovery,” says Larry Brennan, Head of Commercial at Savills. “Last year we saw a real growth in retail sales, on the back of improved employment: genuine economic growth.”
[different] Winter 2015
12 // The Celtic Tiger
Brendan Howard / Shutterstock.com
A good leading indicator for this upward trend is central Dublin, where the prime shopping strip is Grafton Street. Following lettings in November at 57-58 and 23 Grafton Street to Life Style Sports and Claire’s Accessories respectively, the street is now fully let. There is more competition for units throughout the city centre, with overseas retail giants like Hugo Boss and Inditex thought to be considering Dublin openings, while incumbent retailers are talking about expanding. And US brands such as Hollister, Abercrombie & Fitch and Michael Kors have all taken space at Dublin’s Dundrum Town Centre.
LAST YEAR WE SAW A REAL GROWTH IN RETAIL SALES, ON THE BACK OF IMPROVED EMPLOYMENT: GENUINE ECONOMIC GROWTH However, nobody is getting ahead of themselves: employment levels are still well below the 2007 high. Job insecurity has led people to save rather than spend and this was reflected in retail rents. Prime zone A retail rents fell by 60% from their 2008 peak, and footfall plummeted. From such a deep trough, it takes more than a few nice Dublin deals to convince property retail investors to re-enter the market. Yet there are now increasing signs of a retail revival spreading into the rest of Ireland as well. For a start, Ireland is officially the best performing economy in the EU with GDP increasing by 7.7% in the 12 months to June – the fastest growth rate since 2006. [different] Winter 2015
And people appear to be increasingly willing to make big spending decisions again, in areas such as automotive and home improvements. Furniture and lighting sales were up 28% year-on-year in Q3 2014, and car sales shot up from 71,348 in 2013 to 92,361 in 2014 – a 29% increase. From disposable earnings and retail sales to consumer sentiment, almost all indicators were positive at the turn of 2014-15 (see table, right). If the stats are anything to go by, wallets in deep-freeze are now thawing out at last. There are positive glimmers on the ground. “We’ve started seeing positive sales growth on a national basis,” says Brennan. “And we’ve started to see specific locations outstrip those too.” This obviously includes city centre Dublin, but it also includes prime shopping centres, as well as Cork and Galway city centres. In fact, shopping centres have fared better in many respects than high streets, according to Brennan, who lauds the active role played by landlords in keeping mall vacancy relatively low under testing circumstances. This, he said, is now feeding into an uptick in investment volumes for Irish malls. “One of the remarkable features of the retail market in the downturn was that occupancy levels in shopping centres remained strong.
Dublin’s prime shopping strip Grafton Street is now fully let
// 13
“You found ways of dealing with problems. So the income levels weren’t necessarily there, but the lights were on.” It has whet the appetite of active investors who see the management opportunities in buying centres on the cheap, then enjoying rental uplifts as the economy recovers. One such investor is US hedge fund Värde Partners, who has played a big role in picking up distressed portfolios from banks in the UK that are deleveraging. It bought the Acorn Portfolio of shopping centres in July last year for €170m – 30% above the initial asking price – from Ireland’s National Asset Management Agency. This was the first significant post-crisis deal in Irish shopping centre portfolios, and has since been followed up by the €130m sale of the Spectrum Portfolio – also to Värde. A big US firm investing this deeply suggests not only that retail property pricing has bottomed out and things can only get better, but that heavyweights believe a retail recovery is sustainable. For further evidence, there are signs that retail development is finally looking more attractive. Perhaps it is unlikely that a shiny new shopping centre will get off the ground any time soon, but smaller-scale options are back in vogue. Specifically, Brennan points towards infill retail developments in city centres and shopping centre extensions. The former has already proven successful in Dublin, where several new flagship stores have opened in the city centre. These include Nespresso on Duke Street and H&M’s new unit in the former National Irish Bank headquarters on College Green.
IRISH ECONOMIC INDICATORS AT END OF Q4 2014 INDICATOR Consumer Sentiment Index
% CHANGE YEAR-ON-YEAR +13.4
Retail Sales
+4.7
Employment
+1.5
Average House Prices
+16.2
Household Disposable Earnings
+1.2
VAT Receipts
+8.2
Gross Average Earnings
-0.8
Live Register (people receiving state benefit)
-9.9
“There is infill development potential,” says Brennan, “because of limited availability in city centres. People will be activating on smaller sites.” Shopping centre extensions will also figure highly in the minds of retail owners during 2015, as incremental improvements look less scary than wholesale redevelopments do. Green Property recently re-lodged plans for a 340,000 sq ft extension (known as Yellow Mall) at its Blanchardstown Centre. And at Hines’ and HSBC’s Liffey Valley, work is expected to start on the “Western End Redevelopment” extension within the next year, bringing restaurants and a cinema to the centre. These are baby steps in many ways, but development happening has to be a good sign: most development was unthinkable in 2012 as occupiers of all kinds went back into their shells. And bolder moves await. Hines, for example, is working up separate proposals for a much larger residentialled redevelopment at Cherrywood, South Dublin. This has a retail-focused town centre, surrounded by thousands of new homes. It bought the 400-acre site out of receivership in November, and is understood to be wasting no time in bringing a scheme forward. Such major players as Hines and Värde having spent last year cleaning up after calling the bottom of the Irish retail slump is a good sign. And it’s not just Dublin: Värde’s purchases include retail in Cork, County Louth and County Tipperary. Going into 2015, it appears that Ireland’s recovery should turn out to be much more than a tentative glimmer in Dublin city centre. Assuming no domestic policy or international shockwaves come its way, the hope is that an improved jobs market will continue to tempt people back to stores in ever greater numbers. It may not yield a Celtic Tiger of the same proportions, but Ireland has certainly found its feet again.
[different] Winter 2015
14 // Wetherspoon
‘SPOONS’ AIMS FOR A BIGGER HELPING [different] Winter 2015
// 15
Pub giant Wetherspoon is moving ahead with a major expansion programme and destroying a few stereotypes in the process. Think of a Wetherspoon pub and your mind might default to images of cut-price shots and Curry Clubs served from behind gigantic beer bars. But today these stereotypes do something of a disservice to ‘Spoons’ as the chain is affectionately known in many quarters. Despite already having 930 pubs across the UK, it is thirsty for more and has a target of reaching 1,500 within the next five years. However, so huge is the UK’s pub market, that Wetherspoon’s current representation still only gives it a market share of 1.4%. In addition to an ambitious expansion strategy, the company has also adopted a sophisticated approach for introducing new pubs and products which stretches far beyond cheap Jaeger bombs and chicken korma. One example of this is its increasing ‘real ale’ offer. To reflect the rise in microbreweries in the UK, it now dispenses craft beer at all its pubs from Aberdeen to Hoxton. Wetherspoon’s Eddie Gershon, reports: “We’re seen as the pub company that’s really brought craft beers into pubs, and you wouldn’t necessarily expect that. “When Wetherspoon does something it happens across all 930 pubs. But it’s not so much driven by leading the way, it’s about doing what makes commercial sense.” It is a clear sign of Wetherspoon’s brand strength and selfconfidence that it does not tailor its offerings to specific
geographies. Instead, it rolls out its strategies including those all-important beer selections and lets the customer decide. “I don’t think Wetherspoon patronises people by saying: ‘you live in the Black Country, so you drink lager or you live in London you drink craft beer’,” says Gershon. Last year, it also ventured overseas for the first time opening a series of pubs in Ireland with more tipped to follow. Its Irish expansion has caused some waves in the business with Wetherspoons value pricing creating the ‘three-euro pint’. It has refused to deal with brewers who cannot match its value aspirations and is showing that customers are perhaps less attached to the big name beers than might be imagined. Plans are in place to open another 30-40 Irish pubs in the next five years, and the company is clearly confident about its prospects. It has already completed on a further three sites in Swords, Cork and Dublin.
Wetherspoon now dispenses craft beer at all its pubs
We’re seen as the pub company that’s really brought craft beers into pubs
[different] Winter 2015
16 // Wetherspoon
Good value means good value, and that’s more than just price It is not just Ireland’s recovering economy where Wetherspoon sees further growth opportunities though. There is room for expansion throughout the UK, according to Gershon, with many lesser-known towns likely to get the ‘Spoons’ treatment before long. This tends to involve taking on large and distinctive disused sites in town centres and turning them into thriving pubs. As Gershon explains: “Only around 30-40 of the 930-strong Wetherspoon chain are former pubs. Wetherspoon don’t go out looking for existing pubs, and if an old pub is bought then it will be shut and redeveloped into an entirely new environment.”
The vast majority are housed in buildings that no one wants to invest in The reasons for this policy are several. The most obvious is that if a brewery or owner is choosing to shut down an existing pub then there is probably something wrong with the pitch, not least the pub itself. The company has also made something of a trademark out of converting old buildings that need bringing back into uses, from banks and post offices to theatres and cinemas. “The vast majority are housed in buildings with former uses that no one wants to invest in, but Wetherspoon does. “It wasn’t actually designed to bring distinctiveness to the brand, but it helps. Wetherspoon like to start with a great canvas.”
[different] Winter 2015
The company tends to buy large freehold sites ‘smack bang’ in a town centre. It will do selective leasehold deals, but only if the building is right. The large scale of the buildings allow it to operate at a size that provides further economies of scale, but it is determined to show that size does not mean lack of quality and service. “We’ve been pioneering in some of the services we’ve offered, from all-day food to teas and craft beer. And I don’t think we’re fussed at all that it’s seen as good value. “If you see a pub that’s cheap but it’s also filthy and you think you might get your head kicked in if you go in then cheap means nothing. “Good value means good value and that’s about more than just price, and that’s what a very well run group of pubs like Wetherspoon can deliver.”
// 17
ON THE PAPER TRAIL Ă“
In a world where we spend most of our time looking at screens, the production quality of a physical document can send important messages about your business or product. The Completely Group's Creative Director, Ben Parer, explores the world of paper and its contribution to the marketing mix.
Ă“
[different] Winter 2015
18 // On the paper trail
For centuries, paper was a medium to hold a message. Today, the paper itself can deliver a message. Every type of paper from your daily newspaper to handmade Florentine writing paper communicates something as soon as you touch it. The printed document can still play a role in marketing and value-judgment that digital platforms cannot replicate. Marketers and designers have discovered that printed material gives an extra dimension to the desired impact of marketing collateral. Peter Sommerville of Denmaur Independent Papers observes: “A printed paper product still achieves higher rates of engagement with the reader and is an excellent mechanism that can lead to online activity”. While the shift from paper to pixel cannot be denied, the demand for specialist printed matter is clear. Bespoke paper supplier, Fedrigoni UK, has doubled its turnover in the past five years and had a record-breaking year in 2014 both in terms of volumes produced and profits earned. Fedrigoni’s Fred Haines, comments: “We are focused on the sectors of the market that are still growing. There is no doubt a clever paper choice enhances design, and conversely a poor stock can make a strong design less impactful”. Unfortunately, the whole printing process and paper sourcing can be the victim of [different] Winter 2015
misconceptions that photocopying paper is ‘cheap’ through to the notion that using ‘good paper’ for a document has to be expensive. As Daniel Mason says in his book Materials, Process, Print: “This ‘dumbing down’ of printing has led to a belief that if something isn’t printed on ordinary paper then it must cost a lot more to produce, and take more time. The expectation threshold has been lowered so much that it is becoming increasingly difficult for the designer, client and customer to overreach their expectations, to challenge what they know and to produce work that may be of greater aesthetic value”. Clearly sustainability issues lie at the heart of going into print and consuming large amounts of paper. For the paper companies, it is in their best interests to create sustainable supply. Ethical paper manufacturers replace trees at a higher rate than they cut them down.
THE CONSENSUS AMONG ALL PRODUCERS IS THAT PAPER ISN’T DEAD – BUT WASTING PAPER IS. As a response to concerns surrounding deforestation, the Forest Stewardship Council (FSC) was formed. It is an international, independent organisation that promotes responsible and sustainable forestry worldwide. There are two components to FSC certification: forest management and chain of custody certification. What this means in practice is that if a paper has an FSC certificate then you know that the paper has been produced from well-managed forests. Being environmentally conscious about the process in paper selection, from tree, pulp, chemicals to paper, enables us to have a much greater impact than simply recycling our household goods.
//1919
Paper manufacturer, Antalis, is currently introducing a star system for their papers which takes into account factors such as the type of pulp and the efficiency of production. “This will help clients make simple informed choices with regard to paper selection”, says the company’s Naomi Shelley.
IT IS BECOMING INCREASINGLY DIFFICULT FOR THE DESIGNER, CLIENT AND CUSTOMER TO OVERREACH THEIR EXPECTATIONS Denmaur seem to be taking their environmental concerns a step further. If clients are keen to minimise their CO2, Denmaur Independent is offering free carbon neutrality on its stock papers and a free-of-charge offer on its Amadeus recycled range. Carbon offsetting is facilitated by purchasing carbon credits from The CarbonNeutral Company, who provide independently audited and verifiable offsetting schemes. The consensus among all producers is that paper isn’t dead – but wasting paper is. This has led to a reaction in the market where designers and consumers are searching for a more authentic experience from their marketing material. Uncoated, rough and less refined papers are being utilised much more than in previous decades. In the UK, Antalis sell about a third more uncoated paper than coated now and believe that digital print is generating a new wave of marketing possibilities with short runs, use of high spec papers, and on-demand printing and personalisation. Certainly the range of papers available provides almost endless possibilities. Naomi Shelley explains: “No two papers are the same. Uncoated paper is generally whiter than coated as the pure
fibres can be seen and reflect the light better. Generally, the more matt the paper is then the more uniform the impression of colour it will give.” The details we have provided here about some of the producers and papers available are just the tip of the iceberg. It is really worthwhile for all marketers to explore the sustainable, cost-effective materials that are now available and how they can deliver an extra punch to marketing initiatives. There is a tremendous subtlety in paper selection but it has a demonstrable impact on the document recipient. With printing methods being refined and an ever-increasing range of paper products, the possibilities are even greater and more spectacular than ever.
SING WHEN CHOO PAPER THE RIGHT CONSIDER: • Cost • Finish ightness • Colour / br • Personality • Weight • Recycled ocess • Printing pr • End usage
[different] Winter 2015
20 // On the paper trail
Antalis
Denmaur
Fedrigoni
A quality and heritage of the creative papers portfolio such as Conqueror, Curious, Keaykolour, Rives and Popset. With the largest deinking plant in Europe they produce recycled papers, Cyclus and Cocoon.
A service offering of paper management with a very strong relationship with magazine and brochure producers with a broad range from standard newsprint to our Fabriano specialty.
A wide range of specialist papers available in more than 100 countries.
Specialism
What’s your best-selling paper? Our biggest selling brand is a mid-range FSC high white with a large stock holding of sizes and weights. A great balance of flexibility and quality. Our best-selling creative paper is Conqueror – it’s our super brand. What are your newest most interesting papers? Curious Matter is a new addition to the Curious Range. It took seven years to develop and has a very unique rough surface made by coating the paper with up-cycled starch, which is a waste product from the production of chips and crisps. It is available in six colours with paper and board weights – each colour named after a potato! It has been used for packaging, brochures, business cards to name a few applications and is suitable for all print and finishing techniques, it’s very versatile. Antalis.co.uk
[different] Winter 2015
Specialism
What’s your best-selling paper? Without needing to look at the stats, our Amadeus Primo range, a premium quality, white triple coated paper in Silk and Gloss. What are your newest most interesting papers? Fabriano specialty range – a fabulous offering of translucent, metallic, smooth white and tinted papers. Denmaur.com
Specialism
What’s your best-selling paper? Arcoprint, Spendorgel, uncoated papers and Symbol Freelife coated paper. We are also having a lot of success with Xper which is a coated grade that looks and feels uncoated but offers great ink lift, this is proving very popular. What are your newest most interesting papers? Our latest grade is Sirio Ultra Black which has been very well received; in fact the quickest take off for any new grade we can recall. It is the ‘blackest black’ on the market and a feature is how well this grade performs with metallic foils due to the fact no carbon is used to create the very strong black shade. Fedrigoni.co.uk
Bike Ride // 21
A Completely Amazing Ride Rugby legend, Lawrence Dallaglio, joined the riders on the inaugural Completely Amazing Bike Ride and definitely spurred many in the field to redouble their efforts. The Completely Group’s Dom Millar comments: “It was a superb day and as much about the chat and socialising afterwards as the ride itself.
The ride raised £10,000 for The Dallaglio Foundation and the great man was happy to be among the 100+ riders who tackled a course through the rural beauty of the Surrey Hills which included an ascent of Box Hill as a timed challenge.
“The choice of distances to ride made it an accessible day for all levels of riders and we’re delighted that it raised a great level of funds for the Dallaglio Foundation.”
Having crossed the finish line, Dallaglio commented: “It was a fantastic route and a great event. I certainly enjoyed getting back on the bike and having a chance to talk about what the foundation does. Many thanks to The Completely Group: I hope to see everyone again next year!”.
There were only two punctures and one ‘lost’ rider but that turned out because he hadn’t put his time chip on his helmet.
The Dallaglio Foundation has been set up to support young people in tackling life’s challenges through the team ethos that sport provides.
See you again later this year!
It wasn’t a day about racing but Andrew Heaney of Thompson Heaney does deserve a mention for the fastest Box Hill climb: a lung-bursting 5 minutes 46 seconds.
The bike ride by numbers
£10,000
626
150
850
raised for The Dallaglio Foundation
energy gels consumed
litres of water drunk
arrows showing the route
[different] Winter 2015
22 // Keeping it Brief
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…
MARKETING MAJOR INVESTMENTS The marketing of major real estate investments requires a sophisticated and exhaustive approach. UK assets are attracting investor interest from across the world so it is essential that the marketing collateral gives prospective buyers comprehensive information on the property. This is particularly true in the retail sector where the look and feel of a property are a contributory factor to its operational success. The Completely Group has developed a specialism in this area of the business and our work on the recent sale of a major retail asset in Scotland is a good example of this. Colliers International’s UK Retail Investment team instructed The Completely Group team to produce the marketing collateral to promote the
sale of The Centre Shopping Centre and Almondvale Retail Park in Livingston, West Lothian.
Completely’s Ben Parer reports: “We produced both marketing collateral and a secure online data room for potential buyers to browse key information about the asset”. To market the property, Completely produced a high production value brochure with lay-flat binding, video and iBook presentation. “iBook presentations are proving to be a very popular and effective presentation tool for our clients,” says Parer. “They provide an opportunity to showcase detailed information, plans, images and video in a flexible and dynamic way that allows the presenter to move through the iBook as the meeting requires.”
The Land Securities assets were sold in late 2014 to HSBC Alternative Investments for £224m. James Findlater, Head of Shopping Centre Investment at Colliers International, comments: “This was an investment sale that required bestin-class marketing material and that is exactly what we achieved with The Completely Group”.
Collier International’s investment collateral for The Centre Livingston: case bound brochure and iBook presentation.
[different] Winter 2015
// 23
Record numbers enjoy the Completely difference 2014 was another remarkable year for The Completely Group. We’ve continued to see steady growth in the success of our websites, the numbers of visitors coming to our events and the clients coming to us for our ideas-driven approach to effective creative work. We’re looking forward to an even more eventful 2015.
45
RESIDENTIAL BROCHURES
11
CORPORATE WEBSITES
11
NEW STAFF
166
PDF BROCHURES
18,300
[DIFFERENT] MAGAZINES DELIVERED
3,600
EVENT PARTICIPANTS
4.5 £20,655 MILLION WEBSITE VISITORS
RAISED FOR CHARITY
Sports Personality of the Year The guys and gals at The Completely Group love their sporting challenges and this year looks like it’s going to be a lung-busting, heart-stopping, sweat-showering 12 months of effort. Wei Li, Mark Bailey, Pete Houghton, Andy Fleetwood, Ben Parer and Jess Oakden are all taking part in the Surrey Half-Marathon on March 8th, while Wei, Ben and Pete have also entered the ballot for a place to take on the Great North Run on September 13th. Taking on a longer distance at a slower pace, Simon Millar is planning a 62-mile non-stop walk from London to Cambridge while brother, Dom, is doing endurance cycle rides in Majorca, London and ‘possibly cycling down to MIPIM’. Somewhat more exotically, James Bridge-Butler is taking part in an eightday archery competition while Glen Smallwood will be living the life aquatic when he competes in the Eton Swim at Dorney Lake and also the Thames Swim. Are you taking on an exceptional sporting challenge in 2015? We’d love to hear about it: info@completelygroup.com
Another Victory in Gillingham
The Completely Group has been appointed by Berkeley West London to create the marketing collateral for the next phase of new apartments at their Victory Pier development in Gillingham.
SAVE THE DATES
The next phase is a collection of suites, 1, 2 & 3 bedroom apartments with stunning waterside views, and offering London-style luxury in Kent.
The Completely Group’s Glen Smallwood commented: “Following a competitive pitch and the successful completion of the work for the previous phase, we’re delighted to be working with Berkeley West London on this project”.
COMPLETELY RETAIL & LEISURE MARKETPLACE
24.02.2015 DUBLIN
28.04.2015
LONDON Image shows previous development
29.09.2015 LONDON
[different] Winter 2015
24 // Manifesto
The High Street
Ain’t Dead! Rumours of the death of the High Street have been greatly exaggerated says GVA’s David Hooper. Illustrations by Michele Patruno
David Hooper is a Director of Retail Agency at GVA
[different] Winter 2015
// 25
Towns and their high streets are now reinventing themselves For many commentators, the onset of the recession spelt the death of the High Street, but seven years on, there is evidence of a resurgence that could genuinely breathe life into these crucial commercial areas. At the extremes, there are still the ‘mega-prime’ High Streets that continue to be strong, and attract a wide spectrum of shoppers and the best retailers. Their continuing challenge is to stay fresh, attractive and to move with the times while providing the right space for new occupiers. At the other end of the spectrum, there are centres that are so badly neglected and their reputations so tarnished that they would struggle to ever change that perception without starting from scratch. However, that challenge is being accepted and towns and their High Streets are now reinventing themselves. Through the recession these changes were largely instigated by local authorities who were keen to see their towns maintain status, provide services for their constituents and, of course, maintain business rate income. Now that the economic recovery is taking hold, developers and investors are coming to the party: purchasing properties and development sites in order to make a return from the improving confidence in the sector. So how are our towns repositioning themselves? Much has been reported about the role of leisure in helping turn around the fortunes of towns and centres and it is true that it has played a large part. The cinema, hotel and food & beverage market continues to advance, helping create new, integrated developments and attractive retail destinations. Smaller towns are also tuning in to what a largely commuterbased population wants: convenience and impulse retailing, health services and somewhere to eat, drink, visit the cinema or go to the gym. And boutique is a new watchword, from artisan food to high-end fashion or bespoke interiors. One of my favourite new trends is the boom in cycle shops such as Maison du Velo or Look Mum No Hands. Above all, retailers have identified the need to be smarter and more flexible. What is your core market, when are they about and what do they want? I am still amazed when I visit small towns on the weekend and nothing is open on the High Street on a Sunday. Conversely, in other South Eastern towns I am seeing retailers going back to the old model of closing either one week day or closing early and then opening on the weekend and/or opening late one or two nights.
In the past four to five years, new development has revolved around leisure and supermarkets. We are now seeing a halt to large-scale supermarket expansion (stores of 50,000 sq ft plus), but there is a continued push in the Sunday trading/ convenience end and a concerted push by the ‘discounters’. Tesco for instance has just announced it is to close 43 stores nationwide, surrendering market share and opening new opportunities where it withdraws its High Street convenience type branches. At the same time, we are now seeing other traditional retailers back on the acquisition trail with fashion brands such as H&M, Next, TK Maxx, Sports Direct, Gap, River Island and New Look either looking at smaller, mass market towns or relocating to larger units in existing towns. At the smaller boutique end of the spectrum we are continuing to see aspirant boutiques such as Mint Velvet, Pure, Crew, Jojo Maman Bébé, Cath Kidston, Muji, India Jane and Joules expanding. Boutique cosmetics such as Mac, Benefit, Space NK and Jo Malone and chocolatiers such as Hotel Chocolat, Monty Bo Jangles and Montezuma’s are also populating our towns, while outdoor wear Cotswold, Snow & Rock, Mountain Warehouse and Trespass and the cycling retailers such as Evans, Cycle Surgery, Cycle Republic (Halfords) and Rapha are enjoying continued success. [different] Winter 2015
26 // Manifesto
Retailers are more cautious and the success of lettings is now more reliant than ever on the right space, with the right adjacencies and a well scrutinised financial deal, but there is now a good selection of operators to talk to once again. In ailing/ageing smaller shopping areas, one option for revitalisation is to create larger space through assiduous asset management and pulling in a retailer of the calibre of H&M or Next. The retailers secure rare large units in a new catchment and the landlord, despite having to agree very favourable financial terms to the tenant, creates a new draw to the centre, bringing in new footfall and a wider demographic.
And with changing shopping habits, these stores and centres are using online and mobile shopping to their advantage. The amount of click-andcollect business is growing rapidly and by bringing the shoppers in to collect or return, you create linkedtrips and other retail business. A raft of new click-and-collect options linked to transport hubs across the greater London area is testament to this.
We are continuing to see aspirant boutiques expand
[different] Winter 2015
// 27
Franchising is flavour of the month with the coffee and restaurant markets leading the way. Costa, Starbucks, Muffin Break and Coffee Republic are all now franchised and expanding. Until now, most High Street development has been led by the public sector which is seeking to regenerate towns and whilst still seeking to either procure a capital receipt of improvement in the public sector income. They have been offering developers and investors a softer entry into the market with returns being shared at the completion of the development. What we are now starting to see is a return to the traditional purchase of site up-front model, particularly in residentially-led developments. Some local authorities are creating long-term income by seeking to take advantage of their very competitive public sector borrowing rates to fund their own developments. In the development field there is a continued rebasing of values and some developments that were sold or allocated by local authorities are now coming back to the market to start again, because either plans or values were too ambitious at the time. While mixed-use is the fashionable answer to development, developers and their advisors still need to be cognisant of the market. You can only afford complexity and massing when you are developing in a major settlement where values will support the increased build cost and end service charges. In smaller towns it pays to keep it simple.
The great retail wheel may well be turning back towards traditional high streets A good example of the new players in the sector is CoPlan Estates: a boutique mixed-use developer formed in 2006 by former St Modwen directors. CoPlan see a large number of towns that are short on leisure and decent catering facilities as well as affordable housing, hotels and cinemas, which means there is plenty of scope to find sites and make a return. Food stores are another sector they know well and these can also form part of either High Street or District Centre development. CoPlan’s Colin McQueston comments: “We have dealt with the major four supermarket operators, but more recently have developed and let stores to Aldi, whose model is more compact and fits in to smaller town centre sites. Also they have been happy to go and compete with other operators without getting into the complexities of parity of offer”. It is an asset class they know well and understand, they like the challenges and interest a mixed-use scheme brings. They are most familiar with town centre schemes and have an expertise in engaging with and working in conjunction with local authorities, the town mayor and other major stakeholders. They are committed to the public consultation
which is required by these projects. While the initial costs of entry and risks might be lower, the process required is more protracted and developing in town centres tends to attract more scrutiny. Having developed schemes in Edmonton and Bedford, they are shortly about to commence works for a major riverside, mixed-use scheme in Bedford, which is 90% pre-let and will transform Bedford’s town-centre leisure and catering offer, also helping to connect both sides of the town and bringing the river to the town. Leasing is about to commence in a similar scheme in Redhill, Surrey. The Redhill scheme will incorporate more retail space too. It seems that the great retail wheel may well be turning back towards traditional High Streets and the values of place-making and destination shopping. Watch this space. [different] Winter 2015
28 // Marketplace
A MESSAGE TO THE MARKET The massive turn-out at last September’s Completely Retail & Leisure Marketplace was clear evidence of how these sectors are now emphatically on the front foot.
Photography by Murray Scott [different] Winter 2015
// 29
Deep in discussions and deals
[different] Winter 2015
30 // Marketplace
This was the biggest Marketplace since it was established in 2012
With more than 550 retail and leisure businesses represented, 96 exhibitors and 1,600+ delegates, this was the biggest Marketplace since it was established in 2012. The Completely Group’s Dom Millar reports: “The show is now firmly established in the sector and the fact that we had to add a further 16 exhibition stands illustrates the level of demand. “Exhibitors and delegates are seeing real value in attending and using the opportunity for intensive business development.” Companies exhibiting at the event included Aldi, ASDA, Aviva, British Land, CBRE, Colliers International, Hammerson, H&M, Heron Foods, JLL, Land Securities, Sainsbury’s, Tesco, TK Maxx and Waitrose.
[different] Winter 2015
Once again, the Soapbox sessions provided an opportunity for expanding brands to pitch their requirements to agents and landlords. It is a highly efficient format with each brand having three minutes to get their story across.
Soapbox drew in large crowds as always
Dom Millar comments: “The Soapbox content was always compelling and a hugely efficient way of getting an overview of some great go-ahead brands”.
Exhibitors and delegates are seeing real value in attending
// 31
ON THE
The day drew to a close with delegates gathering on the Old Billingsgate Market riverside terrace for drinks as the sun went down over the Thames. Delegates and exhibitors are already signing up for the next Completely Retail & Leisure Marketplace in April. New sponsorship opportunities include a breakfast cruise on the Thames.
Both of the Soapbox sessions were attended by over 500 delegates with standing room only.
THE BRANDS REPRESENTED THE DELICIOUS SCIENCE OF BUBBLE TEA
You can start your networking early on the luxury Barracuda cruiser and treat up to 200 guests to breakfast and the stunning views of London.
SEE YOU IN APRIL The next Completely Retail & Leisure Marketplace will take place on Tuesday, April 28th at Old Billingsgate Market. Core sponsors for the event are Cushman & Wakefield, British Land, Colliers International, The Gym Group and Westfield. There are already 95 exhibition stands confirmed with expectations of over 1,800 delegates.
THERE’S MORE INFORMATION AT www.crmarketplace.co.uk and if you’re interested in attending or taking a stand, please call Rebecca Sawyer on 08430 227333 or email rs@completelygroup.com * Numbers correct at time of going to press
[different] Winter 2015
32 // A Drink with
A DRINK WITH…
ANDREW FERGUSON Andrew Ferguson is Head of Leisure at Legal & General Property, which has more than £1 billion of leisure assets under management. He met up with Dom Millar to talk about the leisure sector, lease lengths, and why trampolining may soon be coming to a town near you… [different] Winter 2015
What are you drinking, Andrew? I’m actually having a dry(ish) January but, seeing as it’s my birthday today, I’ll have a Peroni.
Busy start to the new year? What’s happening in the Leisure Fund? We’re continuing on from where we left off last year with plenty of good asset management initiatives across the portfolio. We started the development of an exciting new leisure scheme down in Bournemouth at the end of 2014.
You have leisure parks across the UK. Which do you think is most representative of where the sector is heading? The days of the huge leisure schemes are over for now since operators are taking less space and sectors such as bowling and bingo are gradually getting smaller. Pure leisure schemes are much smaller these days made up of predominantly cinemas and restaurants. Every local authority in the country would love a cinema and parade of restaurants in their town to drive their evening economy.
// 33
Any exciting new leisure concepts that we should be aware of?
A scheme we funded in Aldershot a couple of years ago is representative of all the above which has had a hugely positive impact on the local economy.
The leisure market is always evolving as it forms such an important part of people’s lives. City centre bowling has grown in popularity off the back of All Star Lanes in London, the budget gym operators have re-invented the health club market and kids play centres have emerged as a very popular activity.
How did you get into the leisure end of fund management? At the time of joining L&G there were two specialist Leisure Funds in the market. Prior to joining I spent five years in the leisure development market getting to know a large number of key operators and understanding their businesses. The key to running a specialist fund is knowing your occupational market in a particular sector. My investment and development background helped make the move into the world of fund management.
How important is it for you to have a view on the attraction of a leisure concept or is it just a case of making sure the financials stack up? There is an element of both however the leisure concept and tenant mix is vital in the creation of a good scheme. Value is in the strength of the scheme which is driven by the success of the operators. There are many new entrants trying to break into the leisure sector who cannot offer strong rents or covenants but they will deliver greater footfall to a scheme which helps other operators. For example leisure offerings are complementing retail offers in many shopping centres all over the UK, driving footfall and giving a better overall shopping experience. Some landlords have to be brave as the introduction of some leisure offerings may not stack up on day one.
The most recent activity to break out of the US and Australia is indoor trampolining, whilst themed restaurants and bars continue to re-invent themselves.
The days of huge leisure schemes are over for now Leisure is becoming increasingly popular with investors. Are you finding it more competitive out there?
How do you spend your leisure time? My big passions are golf and skiing. I did enjoy eating out, but that has come to an end for the moment following the arrival of my baby daughter five months ago!
Snack time: what do you fancy? Any chance they serve ham and cheese sandwiches? They’re an old favourite!
It’s becoming hugely popular. Investors and landlords are wising up to the fact that the sector offers good covenants, long leases and in many instances fixed or index-linked uplifts. What’s not to like?
So is leisure the last preserve of the long lease? Possibly, however there are reasons for this. Cinemas have huge fit-out costs which are paid off over long periods of time, hence their long leases. Restaurants have followed a similar trend where the fit-out costs can be higher than that of a similar retail unit. The most comparable market for long leases is the supermarket sector. However I can’t see too many new large format supermarkets being built for a while.
Andrew and Dom met for a drink at The Gable. Located in the heart of the City of London, The Gable is buzzing with its quirky and stylish decor and a fun-time party atmosphere. Whether it’s eating, catch up drinks or partying on a ‘school night’, The Gable is a great choice for lunch, dinner and cocktails.
The Gable, 25 Moorgate, London, EC2R 6AR 020 7330 0950
thegable.co.uk
[different] Winter 2015
34 // Digital Advertising
FINDING GOLD BY THE ROAD Roadside advertising is offering increasingly lucrative opportunities for both landowners and media sellers as digital technology takes the platform to a new level. Wildstone’s Jonathan Chandler looks at the potential. Jonathan Chandler Development Director Wildstone
[different] Winter 2015
// 35
The Chiswick Towers digital displays on the M4 flyover in West London produce rental income in excess of £1m per annum
The glowing wall of branding that shines down on London’s Piccadilly Circus is arguably the most famous advertising pitch in the world. From its earliest papered hoardings through the heyday of neon and through to today’s pin-sharp digital displays, it has been trying to persuade generations of Londoners and tourists to buy everything from cigarettes to smartphones for more than a century. But if Piccadilly Circus is the ultimate ‘out-of-home’ advertising pitch there are plenty of other potential roadside sites which can offer a potential source of income. Out-of-home (OOH) roadside advertising comes in various forms such as billboard posters, scaffold wraps, motorway towers and bus shelters. It is a £1bn per annum industry and offers opportunities to property owners and agents who can spot the potential of sites.
peresanz / Shutterstock.com
For example, the Chiswick Towers digital displays on the M4 flyover in west London produce rental income in excess of £1m per annum. Developed in 2013 by Wildstone for a public sector client, the two towers occupy a footprint of barely 250 sq ft, which (assuming a sub-10% yield) equates to a capital value of £50,000 per sq ft.
Unlike other property classes, this short lag means the rental bounce on premium advertising has been early and high. Digital OOH, in particular, has seen double-digit annual growth since 2010 and landlords looking to offer media sites to the market today are caught up in a veritable gold rush.
The OOH market is a more accurate barometer of the economic cycle than many other asset classes, because promotional spend is an easy expense to cut in a bearish market but also an important route to growth when sentiment is more bullish.
In 2014, total OOH revenue was up 1.5% year-on-year to just over £1bn. The 2015 forecast is 3% category revenue growth compared with digital accounting for around 27% of revenue.
London’s Piccadilly Circus is arguably the most famous advertising pitch in the world
[different] Winter 2015
36 // Digital Advertising
The advertising potential of a building can have a major impact on its overall valuation
This growing demand from premium brands for digital screen space is being met by Clear Channel and Primesight who have both embarked on a nationwide rollout of fifty 48-‘sheet’ (6m x 3m) displays. JCDecaux and other regional and specialist media owners are also actively pursuing a digital development strategy. This is countering the slump in secondary advertising sales as brands baulk at peripheral traditional formats, leaving landlords facing rent reductions, lengthy voids and forfeiture. It is therefore important for existing or potential advertising landlords and their agents to understand the workings of this polarised market and the opportunities and pitfalls that exist. Following a number of mergers and consolidations, the UK OOH sector is dominated by a small number of media owners that control the market. JCDecaux (30%), Clear Channel (25%), Exterion Media (20%) and Primesight (11%) are the main players at present. They sell the majority of space in fortnightly slots through specialist brokers Talon, Kinetic and Posterscope, which in turn deal with brands via media agencies such as MediaCom and Carat. This hierarchical supply chain and associated rebates and discounts was the subject of an Office of Fair Trading investigation in 2011, though no action was taken. An increasing number of small media owners are seeking to grow market share with the positive economic outlook, which is generating competition for premium sites. This, along with the establishment of specialist landlord consultancies, such as Wildstone, has fuelled further rental growth.
Rents in excess of £1m per annum are now being achieved by landlords for premium digital OOH sites. These figures are a product of scarcity, which is derived from location and planning factors. High rental value sites will always: •
be in top tier cities
•
have good visibility splays
•
have high vehicle and/or footfall traffic
•
have limited competition from nearby sites
•
benefit from an express or deemed advertising consent
•
be viewed by a wealthy demographic audience
Where one or more of these factors is absent the rental values will be reduced accordingly. Where none of these factors exists there will be little or no demand from media owners. Investment funds are increasingly attracted to OOH sites as an alternative asset class. Historically, advertising sites have been secondary or tertiary (with yields to match) reflecting poor construction, short contractual agreements (if any) and weak covenants. More recently, the emergence of digital advertising and the associated increase in capital investment (up to £1m for a large screen) has meant media owners and landlords are more diligent in securing express consents and are demanding longer, more secure tenancies (albeit still Landlord and Tenant Act 1954 excluded).
mikecphoto / Shutterstock.com
[different] Winter 2015
The advertising potential of a building can have a major impact on its overall valuation. The 1960s Mille office building fronting the M4 comprises 100,000 sq ft of multi-let office space together with three digital advertising screens, was marketed in Q1 2014 with a guide price of £15m reflecting a potential net initial yield of 10%.
// 37
It is understood that preferred bidder, McKay Securities, put forward an offer in the region £19.5m, reflecting a yield closer to 7.5%. One can only speculate about the purchaser’s assumptions on the rack rental value of the office space or potential for residential conversion. But what is apparent is the reversionary uplift on the JCDecaux double-sided digital advertising tower together with the 70% revenue share payable to the landlord by Outdoor Plus, the tenant of the digital screen on the in-bound facade. The potential for rental growth and yield contraction certainly appears to have been a significant factor. Landowners can certainly be confident that if they provide advertising space on their buildings that they will be dealing with substantial ‘tenants’. The principal media owners are now all multi-million pound turnover covenants. The effect of this security and demand for space has been a hardening of yields for these rarely traded OOH assets. Another area for potential is installing advertising banners on scaffolding during building development and refurbishment.
While temporary, these displays (which still require planning consent) benefit from low installation costs and therefore the returns remain high. In a valuable location, income for landlords could readily exceed £50,000 per month, comfortably covering the cost of the scaffold and contributing significantly to the associated works.
Digital signage at the Euston Underpass in London
However, voids will be higher and that relying on this income, particularly in non-core locations, is not advisable without first seeking professional advice. This is a growth area, particularly with the development cycle returning to speculative projects providing a greater number of opportunities. The sophistication and proliferation of out-of-home advertising sector is moving forward constantly. Landlords and occupiers would be wise to explore opportunities in their portfolios. [different] Winter 2015
38 // Portfolio
Ultimately, at The Completely Group we hope that our work speaks for itself. We also hope you’ll come to our events, and check out our listing platforms. In the meantime, here’s a snapshot of some work we’ve done. You can see more on our website (www.completelygroup.com) in the Portfolio section.
Bankside Mix website
The Arena, Sacramento, California, USA
Moat @ The Edge Website
Bouyges Vista 2020 Identity
Colliers International’s Eat & Drink London
GAMA brochure
CBRE Development iPad Presentation
Crawley Investment Brochure
Completely Events Website
WOULD YOU LIKE TO RECEIVE A DIGITAL VERSION OF THE MAGAZINE? Sign up to receive future editions or download digital versions of [different].
different.completelygroup.com
[different] Winter 2015
PRINTED
iPDF
ISSUU
The Secret Agent // 39
AND THE WINNER IS...
For anonymity and the avoidance of a P45, the identity of the Secret Agent must remain hidden. Suffice it to say that they are active in the London market and will be sharing their marketing experiences with us from time to time.
It’s awards season – the Golden Globes, BAFTAs, Oscars, FIFA Player of the Season etc. On the telly it seems you’re never more than 10 minutes away from Eddie Redmayne gulping and goshing his way through an interview to say how amazing it was to meet Stephen Hawking and what a fool he felt for getting astrology mixed up with astronomy. Speculation is rife about who will win what and whether they deserve to, and it’s pretty much the same in the property business at this time of year. We had the EG Awards in December while many a marketing department will have just finished compiling entries for the Property Awards which are handed out in April. For a small but perfectly formed property agency like ours, it’s pretty tough to even make it onto the shortlists for those awards but we give it a go each year. Presumably at some point, JLL, CBRE, Cushmans et al will get bored of trooping onto the stage to get their gongs from Jimmy Carr, Fiona Bruce or a confused former rugby international. For agents like me who are responsible for marketing, the newly resurgent Property Marketing Awards are of more interest – and perhaps offer a more level playing field.
As a property agency we can’t really compete with the deal volume of the mega-firms, but when it comes to the ingenuity and creativity required for good property marketing then we fancy our chances. So we’re now looking at the marketing we did in 2014 and feel we have a real shot at the London Offices and Retail & Leisure categories. It would be good to win something. Not least because – next to being a great negotiator – the most important skill for an agent is knowing how to market a property and so it would be great to be recognised in this area.
I’ve only won one award in my entire life. It was at school: the 2nd Form Reading Prize
I’ve only won one award in my entire life. It was at school: the 2nd Form Reading Prize. My chosen text was an excerpt from the epic Old English poem, Beowulf. Later the same day, I played for the school in the under-14s Regional Cricket Cup Final. I dropped a sitter at first slip: the guy went on to make 78. They won the cup; he got the Man of the Match award. Triumph and disaster: they’re never far apart – but you can’t win if you don’t play… propertymarketingawards.co.uk
[different] Winter 2015
24TH FEB 2015 | CHQ DUBLIN
Marketplace London, 2014
CHQ, Dublin
Marketplace London, 2014
The award winning Completely Retail & Leisure Marketplace is heading to central Dublin for an intensive day of property dealmaking. Join leading retail & leisure brands, landlords and agents to discuss a wealth of leasing and investment opportunities across Ireland and Northern Ireland.
OCCUPIERS ATTEND FOR FREE
RETAIL AND LEISURE BRANDS REPRESENTED
FREE FLIGHTS FOR UK OCCUPIERS*
Register now at:
WWW.CRMARKETPLACE.COM/IRELAND Enabled by:
Media partners:
* Limited spaces remaining. Please contact us for latest availability
Partners: