11
ANALYSIS
The British Property Federation’s Retail Property Summit held in London brought
together owners, occupiers and advisors to highlight some of the key issues facing
the sector
point of view moving from quarterly to monthly terms dramatically
increases the risk,” he said. “One of the reasons rent has been collected
quarterly is that it gives the landlord a bit of a cushion if a retailer
does fail.”
And he pointed out that there was also an impact on a property’s
yield. “Changing the cashflow and the risk profile affects the capital
value of a property,” he said, “And in some cases that could put a
property in breach of its loan covenants.”
So what else can be done to improve the retail landscape?
Hutchings said Hammerson and other big mall owners are always on
the look-out for new fascias to inject variety into their tenant line-ups.
“We proactively encourage new retailers,” he said. “For instance we
also have a French business and we work closely with our French
colleagues to bring some of their retail tenants over. And over the past
ten years we’ve spent time and money encouraging US retailers to set
up here.”
He said this approach has had a “fair degree” of success. For
instance Abercrombie & Fitch chose Brent Cross for its first Hollister
store, and Hammerson has more Apple stores in its portfolio than any
other UK landlord.
“There are others that we’re talking to but it’s a long, slow burn,” he
said. “The lower cost of entry is making the UK more attractive at the
moment.”
Hammerson also now encourages pop-up shops, where once it
Lawrence Hutchings
would have rejected them. “They are a fascinating opportunity,” said
Hutchings. “We had Fred Perry and Cath Kidston at Spitalfields. In some
opportunities in the marketplace.” ways we’re beginning to see voids as an asset.”
However he did detect some movement on lease terms obtainable And HMV’s Bowles is also a fan of the pop-up phenomenon. “HMV
in the market. “We are seeing a new willingness among landlords to opened ten in the run-up to Christmas,” he said. “They’re a great
work together with retailers,” he said. “For many the key now is just to opportunity and they needn’t affect the overall feel of a centre.”
get cashflow, so we are seeing more flexibility.” But prof Gilbertson asked: “Do local authorities have the financial
Monthly rents were trumpeted as a key concession that landlords muscle to do that sort of thing on the high street?”
could make to help their occupiers, but Hammerson’s Hutchings says And he finished with a warning. “Our view is that between 18 and
take-up has been light. “The BPF and the BRC agreed that monthly 22 per cent of the high street stock will never be reoccupied. Those
terms would be available on all new leases, and where retailers could sites are going to have to be reused for some other purpose.”
demonstrate hardship it’d be available on existing leases,” he explained.
“We wrote to all of our smaller tenants asking if they’d like to take Find out more:
this offer up, and only 14 out of 74 bothered to reply. And we’ve only For more information, please contact the author or visit the website:
been asked for it on a handful of new lettings.”

www.shopping-centre.co.uk/development
PWC’s Gilbertson gave a different perspective. “From the valuer’s

graham.parker@jldmedia.com
www.shopping-centre.co.uk February 2010 SHOPPING CENTRE
10-11-SCFeb10-Profile.indd 11 15/2/10 17:29:42
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