Ellandi reports on Investment with React News

Jan 31, 2023

Only handful of shopping centres assets launched in second half of 2022 change hands

Of the £1.4bn of shopping centres launched for sale in the second half of last year, just £80m changed hands, according to data from Ellandi released exclusively to React News.


The first half of 2022 performed strongly, with £850m of deals completed, and the average lot size started to creep up to around £28m after a torrid few years of low valuations.  Driven by this momentum, the summer and second half of the year saw a spate of assets, including some particularly large lot sizes, put up for sale to tempt the rising investor appetite.  In total, 28 assets valued at a total of £1.4bn were brought to market in the second half of 2022.


Many smaller centre sales were still driven by distressed debt-led situations, as the retail sector’s collapse in valuations and the remains of Covid-19 challenges still worked their way through the system. However the return of some confidence led to banks being more positive in the pricing of assets being put up for sale.  Of the £1.4bn, £650m was made up of just four centres – the £250m Churchill Square in Brighton, the £140m Union Square in Aberdeen, the £130m Festival Place in Basingstoke and the £150m Highcross in Leicester.


In November, React News reported that the ongoing negotiations around the sale of these assets were all frozen in time. While some movement is understood to have been made behind the scenes, no deals have completed.


Overall, just £80m of shopping centres launched for sale in the second half sold, with the rest of the numbers made up by assets put up for sale much earlier in the year or in 2021.


The sale values also struggled to reach the heights many had hoped for. Golden Square in Warrington sold for £23m, Harvey Centre in Harlow sold for£21m, the Belfry in Redhill for £17m, Ards in Newtonards for £15m and Bon Accord, a centre once sold for £189m, for £7m.


All the other assets are either under offer or were under offer at one point, demonstrating some degree of investor demand, if not the confidence many had hoped for.


David Cohen, director of restructuring and investment at Ellandi says, “The brakes were slammed in the second half of 2022, as the UK political and economic environment was in crisis mode. This provided yet another shock to the retail sector, eliminating the positivity that had been building at the end of 2021 and the beginning of 2022.  However, investor demand for shopping centres remains strong, spurred on by all-time low pricing, affordable and significantly reduced occupational costs and realistic value-add opportunities. The reintroduction of accretive leverage is a vital missing ingredient, and when this returns we expect to see the market propelled forward once again, with the sector’s relative value becoming more widely recognised.”




Ellandi helps deliver Healthy Living Centre in Chatham

Ellandi helps deliver Healthy Living Centre in Chatham

15 Aug, 2024
Works have commenced on a £15 million healthy living centre at The Pentagon Shopping Centre in Chatham. Strategic asset and development manager, Ellandi is working with Medway Council to reinvigorate the shopping centre as part of the council’s wider regeneration plan. In repurposing the redundant retail space in the centre, Ellandi’s analysis showed, that not only were more civic uses needed to address health inequality and crime, but they would also bring an extra million visitors to the centre each year. The shift to civic occupiers would create a more robust mix of occupiers with strong covenants and keep local public sector spending within the borough. Ellandi used evidenced-backed business cases to approach public sector occupiers and show the positive impact a central location would have on their operations: interest began as smaller units grew to much larger anchor space. In 2019 Medway Council acquired their local shopping centre as a pivotal piece in their wider regeneration plan. Three years on The Pentagon is midway into a multi-use civic hub that delivers value for both its community and the council. The regeneration that has taken place will lead to better health and social outcomes for Chatham and will create a stable source of income to fund wider regeneration. Plans include redeveloping the council-acquired office building that sits above the centre to residential accommodation, improving parking and creating ‘pocket parks’ throughout the public realm. NHS Kent and Medway, and Medway Council have worked in partnership to develop proposals to bring it to the Pentagon Centre and create a hub for patients to access a greater range of services, more quickly and conveniently. Brooke Tahau, Director of Development at Ellandi, said: “The development of the James Williams Healthy Living Centre is a great testament to our dedication to enhancing Retail Plus Health. There is a growing imperative to bring healthcare back to the community, and this centre embodies our commitment to providing accessible, comprehensive care in the heart of centres. By working together with the NHS and Medway Council, we are excited to create a space that not only meets the immediate needs of residents but also adapts to future healthcare demands.”) Medway Council’s Deputy Leader and Portfolio Holder of Public Health Teresa Murray said: “We are delighted that we are one step closer to opening a first-class health facility in Chatham town centre, providing quality care in an easy-to-access location. “I am honoured to confirm that the new centre is being named after our late Director of Public Health, James Williams. James was an inspirational figure and huge driving force behind improving health outcomes across Medway, as well as addressing health inequalities across the South East. “The James Williams Healthy Living Centre will stand as a fitting tribute to his work and aspirations and is a big step towards helping to reduce health inequality and improving the health and wellbeing of residents in Medway. I look forward to seeing this exciting project start to take shape over the next year.” Paul Bentley, NHS Kent and Medway Chief Executive, said: “This is outstanding news for the people we serve in the Chatham area. We know more needs to be done in parts of Medway to help improve people’s health and wellbeing and this healthy living centre will help people access the right care, in the right place. “With good transport links and a central location, the centre will also have room to expand over time to offer more services for local people meaning we can join up services, to provide care around people’s individual needs.” Medway Council has appointed Ellandi as development manager to lead the team; contractor partn er Bauvill; architecture firm LSI Architects ; and Structural and MEP consultants Ingleton Wood and Black Cat Building Consultancy as project managers.
Victoria Holloway is part of The Revo's 24 judging panel

Judging for The Revo's

31 Jul, 2024
Our Marketing Director, Victoria Holloway will be one of the judges for The Revo’s this year. Victoria is a senior marketing and communications professional with extensive experience in destination marketing. She has managed high-profile mixed-use development projects across various sectors and will be a good addition to the judging panellists for these coveted awards. They recognise and reward the best of the best in the built environment from asset management to customer experience, operations to destination marketing. At its core, The Revo’s is all about celebrating excellence.

NewRiver REIT acquires Ellandi

05 Jul, 2024
NewRiver REIT has acquired Ellandi for an initial cash consideration of £5 million. This acquisition will incorporate our 16 shopping centre asset management mandates, spanning over 6.3 million sq ft and 10 different partners , into NewRiver’s portfolio. Consequently, NewRiver’s combined capital partnership business will now manage £1.5 billion in assets across a portfolio of 21 shopping centres and 18 retail parks. Allan Lockhart, chief executive of NewRiver, said: “We believe there will be considerable opportunities in the retail real estate market to accelerate the growth of our business from this point. By bringing together two high-quality teams with complementary skills and experience in asset management and regeneration, together with the balance sheet resources we have available, we are well positioned to participate in these opportunities, both on the balance sheet and through capital partnerships.” Our two co-founders and owners, Morgan Garfield and Mark Robinson, will join NewRiver as head of capital partnerships and head of regeneration respectively. They will also join the executive committee. Mark Robinson says: “Morgan and I are extremely proud of what the team at Ellandi have achieved to date in delivering sustainable change to the UK’s retail places and believe this transaction creates an exciting opportunity to combine two market leading retail asset management businesses with shared growth ambitions.”
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