Connect with us

Hi, what are you looking for?

Investing

Don’t invest in shops — demolish them says leading property investor

Warehouse

A property boss who switched from stores to warehouses before the rise in online shopping has criticised rivals who say they are seeing opportunities to invest in retail again.

Andrew Jones, chief executive of LondonMetric, which builds urban warehouses to supply home deliveries, said: “We remain of the opinion that the majority of UK retail is over-shopped and under-demolished.”

Jones, 52, who in 2009 left his job as head of retail at British Land to set up his own company, added: “The simple truth is that retail stores remain at a fundamental and irreversible disadvantage to online competition.”

Mark Allan, chief executive of Land Securities, which owns a stake in the Bluewater shopping centre in Kent, said last week that he expected opportunities to emerge to buy prime retail sites after a sharp fall in rents and valuations. Land Securities’ regional centres have fallen in value by about 60 per cent since their peak and rents are down by close to 40 per cent.

“There is not a long list of people who have the capital and capability to be able to look at those opportunities,” Allan said. “We think that could be an interesting opportunity for Landsec.”

British Land said this week that it is exploring plans to build logistics properties around shopping centres, including Meadowhall in Sheffield, as a slump in the value of its retail property drove the group to a £1.1 billion loss.

Hammerson, the owner of Birmingham’s Bullring centre, is planning to convert a former Debenhams store in Leicester into 300 rental flats.

Jones said: “People who talk about [repositioning retail properties] are those who tend to have a load of retail they don’t know what else to do with.”

Savills, the property consultancy, estimates that 13 per cent of UK retail units are empty and without intervention 25 per cent of retail space could be redundant by the end of the decade. About 40 per cent of vacant units have been empty for three or more years.

LondonMetric’s annual results demonstrated the rewards of investing in warehouses, which have attracted record demand as companies have sought to make their supply chains more resilient during the pandemic. Its net asset value per share — a key measure for property companies — rose 12 per cent to 190p, and the total dividend of 8.65p was up 4.2 per cent on the previous year. Its shares were up 5p, or 2.2 per cent, at 233¼p.

Read more:
Don’t invest in shops — demolish them says leading property investor

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

OUTSTANDING external debt at the end of June was at its highest level since at least 2011, according to the Bangko Sentral ng Pilipinas...

Economy

By Russell Louis C. Ku TRANSPORTATION BUDGETS need to provide for service contracting in order to offer relief for public utility vehicle (PUV) drivers,...

Economy

EXPORTERS have been advised to expect new UK tariffs with the launch of a separate British preferential trade access scheme after it exited the...

Economy

LABOR Secretary Silvestre H. Bello III said seafarers need to be better protected and proposed amendments to the 15-year-old maritime convention of the International...

Economy

The pandemic has accelerated new ways of working across various industries, including the auditing profession. However, new ways of operating for audit firms and...

Economy

SENIOR citizens get inoculated with their first dose of the Sinovac vaccine at the Marikina Sports Complex. — PHILIPPINE STAR/ MICHAEL VARCAS THE PHILIPPINES...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!