How NewRiver partnered with LDC to further understand the market, explore potential new tenants and successfully present a case for turning over a ‘consideration to deny permission’ at a local council.
In retail portfolio
NewRiver is a leading REIT and one of the UK’s largest shopping centre owner/managers with assets under management of £1.2 billion comprising 33 UK-wide shopping centres, 22 retail warehouses, 15 high street assets and a portfolio of 358 pubs.
Their retail portfolio has almost 2,000 occupiers across 8 million sq ft with an enviable occupancy rate of 97% and total annual footfall of over 150 million.
Understanding ‘universe’ of prospective tenants and associated risk and opportunity.
“NewRiver were keen to explore an increased ‘universe’ of prospective tenants as well as develop a greater understanding of the risk and opportunity regarding retailer exposure. To drive interest in a set of unconventional units NewRiver needed to understand not only mainstream ‘multiples’ but also independents.
With full access to LDO and training/support from LDC, each asset manager was able to better understand the market. As with any large landlord NewRiver has excellent relationships with many major retailers. There are times though that we need to challenge ourselves to look further to find new solutions in leasing space. LDC helped us do this by working closely with us to find new potential tenants that were currently not on our active radar.
LDC’s online reporting allowed us to easily understand and target retail categories that were currently undersupplied in the area. LDC’s online tool – LDO – allowed us to export all retailers within these target categories along with their movements (opening and closures) across the last 12 months. With LDC we built a true target list of retailers to approach to drive additional interest in units that we were actively looking to market.
One category that we looked at was estate agency, and through using LDO’s bespoke boundaries, we were able to export a list of all independent agencies with more than 1 unit across the south coast -along with their contact details. LDC has allowed us to build strategic target lists and instruct our agents in a fraction of the time that we had been able to previously.
Screenshot of LDO looking at Estate Agents in Clapham Junction
With a keen focus on asset management we are also able to use LDO to track the movements of the retailers that we have exposure to. As for all of the LDO reports, we found them intuitive to use, and powerful to apply.
“We have consistently chosen to partner with LDC not only because of their data pedigree but also because their account management and analytics team constantly drives us to look at what we do and take it one step further”
– Stuart Mitchell, Director
Independent Location Analysis.
In an attempt to support NewRiver’s case to Worthing Council to change the commercial use orders on a number of units (A1 to A3) as well as grant additional planning permission, LDC were asked to provide independent analysis on why it was in the council’s interest and what it would bring to the area.
LDC produced a bespoke report to understand the split between comparison retail and F&B across benchmark locations to demonstrate that, although reluctant to change the use status, the council’s policy was out of line against regional trends and national benchmarks. Though detailed analysis and a strong partnership from scoping through to brief and ultimately delivery, NewRiver and LDC, were able to successful present the case for turning over a ‘consideration to deny permission’ by Worthing Council.
With planning permission approved, we can now start our investment in The Montague Centre, which has the ability to breathe new life into Worthing. The significant valuation increase in the asset supports continued active asset management and also the growth of NewRiver.
“All of LDC’s work is rooted in sound data, which allows us to fully trust the basis of any analysis we complete.
Across all the consultants we work with they consistently worked with us to build a strong partnership and drive towards excellent results across a number of projects.”
– Stuart Mitchell, Director
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- Benchmarking of asset performance vs. peer groups and competitors
- Efficiency of decision making and due diligence
- Assessing performance of existing and new assets