Retail Portfolio highlights

"Despite the impact of weak consumer confidence and the failure of some retailers, we have made good progress. Our developments are letting up well to major retailers and our strategy is well matched to a fast evolving market."


of out of town/edge of town planning consents and resolutions to grant achieved.


outperformance of sector benchmark in the IPD Quarterly Universe.


of investment lettings.



  • Valuation deficit of 0.1%
  • £281.9m of sales — 5.6% ahead of March 2011 valuation
  • £14.6m of investment lettings — 2.1% above ERV, excluding turnover lettings
  • Like-for-like voids down from 4.3% to 3.6% but units in administration up from 0.6% to 2.2%
  • Trinity Leeds on plan; pre-lettings at 65.4%, with 6.6% in solicitors' hands
  • 185-221 Buchanan Street, Glasgow, ahead of plan; pre-lettings at 91.8%
  • 43,800m2 of out-of-town/edge-of-town planning consents and resolutions to grant achieved

How we create value

We aim to deliver growing rental income streams, higher investment values and future development opportunities by:

  • Forming close relationships with retailers and Local Authorities, so we can respond to people's changing needs and ensure our portfolio fits the market
  • Developing major new shopping and leisure assets that can transform undervalued areas into thriving destinations
  • Recycling capital to find and improve under-used assets so we can unlock value
  • Owning assets able to thrive in a fast-changing retail environment
  • Using asset management expertise to make locations more attractive to shoppers and retailers

Progress against our objectives for 2011/12



Outperform IPD
  • The portfolio outperformed its IPD sector benchmark by 2.4%.
Grow our income
  • Net rental income up by £8.2m.
Expand our out-of-town development programme
  • New sites secured include Salisbury, Selly Oak and Maidstone.
Achieve planning permissions for specific out-of-town developments
  • Positive planning decisions gained at Peterborough, Taplow, Crawley and Chadwell Heath.
Progress development lettings in St David's 2, Cardiff, Trinity Leeds and 185-221 Buchanan Street, Glasgow
  • Lettings now at 88.3%, 65.4% and 91.8% respectively.
Reduce non-recoverable costs in the portfolio
  • Non-recoverable costs reduced by 6.0%.
Progress discussions with local authorities and anchor stores for our development opportunities at Westgate, Oxford and Buchanan Galleries, Glasgow
  • Development agreement terms agreed with Oxford City Council, terms agreed with John Lewis for the anchor store and the principle of tax increment financing approved by the Scottish Government for Buchanan Galleries.
Achieve rental growth through investment lettings above current ERV
  • Investment lettings 2.1% above ERV, excluding turnover lettings, 1% below including turnover lettings.

Retail like-for-like - rental and capital value trends % (12 MONTHS ENDED 31 MARCH 2012)

Retail Like for Like

voids and units in administration % -
like-for-like retail portfolio


Retail portfolio by capital value

Retail portfolio by cap value

Retail Portfolio floorspace 1.62 million m2

Retail portfolio floorspace

Retail - tenant diversification
Group income

Retail tenant diversification


 % of Group rent
Arcadia Group 2.5
Sainsbury's 1.9
Dixons Retail 1.5
Next 1.4
Boots 1.4
Primark 1.4
H&M 1.1
Home Retail Group 1.0
New Look Group 1.0
Debenhams 0.9
Retail other (excluding Accor) 40.8
Total (all retail tenants) 54.9

Top 3 Properties

White Rose

1 – White Rose

Gunwharf Quays

2 – Gunwharf Quays

Cabot Circus

3 – Cabot Circus

Development pipeline

Trinity Leeds


Trinity Leeds
Trinity Leeds is the only large scale UK retail shopping centre scheme due to be delivered in 2013.

185-221 Buchanan Street


185-221 Buchanan Street, Glasgow
Work is on schedule and the retail component is due to open in March 2013.

Meteor Centre


Meteor Centre, Derby
This 9,300m2 food store and reconfiguration of existing units received planning permission in April 2011.

Retail Portfolio looking ahead

Overall, the retail outlook remains challenging and property owners are having to take an even more active approach to asset management to create value. Continued uncertainty in capital markets would add to downward pressure on the sector, but it may also generate attractive buying opportunities. Whether market conditions worsen or we see a return to growth, the quality of our portfolio and our relationships will be increasingly important.

Every retail asset will be affected in some way. Many have the potential to thrive as new dynamics emerge. Retailers continue to be drawn to less expensive space that consistently trades well and asset managers will be required to continually review their assets' attraction to the shopper and the retailer. Larger destinations are likely to do better than the overall market because of the scale of their retail and leisure offer. We will continue to ensure every one of our assets has a clear plan with flexibility to adapt to market scenarios.

Consumer behaviour is changing, not just with the growth of leisure and online shopping, but also through social networking and mobile technology, which can provide information to consumers while they are shopping. This will create even greater distance between the winners and losers in our market, from retailers to locations and property assets. Our strategy is well matched to this evolution.

Key Objectives for 2012/13

  • Outperform IPD sector benchmark
  • Protect occupancy by dealing effectively with retailer administrations
  • Progress development lettings at Trinity Leeds; 185-221 Buchanan Street, Glasgow; Taplow; Peterborough; Derby; and Selly Oak
  • Achieve practical completion on time and to budget at Trinity Leeds and 185-221 Buchanan Street, Glasgow
  • Commence out-of-town developments at Crawley, Taplow, Derby and Chadwell Heath
  • Enter into a development agreement with Oxford City Council for Westgate Centre, Oxford
  • Submit planning applications at Exeter and three new sites secured in our out-of-town pipeline