RETAIL SECTOR
Retail Property
Legal & General Property (LGP) manages over £2.7bn of nationwide retail properties through the balanced funds that we run in addition to over £588m in sector specialist retail funds, namely the Bracknell Regeneration Partnership, the Performance Retail Partnership and the Warrington Retail Partnership (as at end June 2008).
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Bracknell Regeneration Partnership
In Town Retail
We focus on retail assets which dominate their catchment areas or form prime holdings within them. This strategy aims to exert a controlling influence over the retail floorspace growth in the location, especially new developments. Large holdings enable our active management initiatives to propel rental growth to generate improvements across a large exposure.
Retailers
Our scale gives scope to adapt or develop space to accommodate retailer’s changing requirements. Close relationships with retailers are forged. We encourage early notice of retailers’ strategy and performance to influence our own strategy positively.
Shopping Centres
Our shopping Centres are largely in London and the south east where population growth and increasing affluence are expected to drive higher returns. Detailed research, demographic profiling of catchments and trader profitability assessments are undertaken. These inform our strategy and tenant mix initiatives. We exploit opportunities to combine or reconfigure units, increase lettable areas, improve catering offers to increase dwell time and selectively commercialise mall space.
Refurbishment & Development
Our portfolios includes many redevelopment and refurbishment opportunities. These are undertaken in-house and through joint venture partnerships. Currently, we are progressing redevelopments and refurbishments in Oxford Street, Bracknell, Warrington, Eastbourne, Northampton, Guildford, Basingstoke and Aberdeen.
Out of Town Retail
We primarily focus on dominant multi-let parks or long let single tenanted assets, in strong locations with flexible planning consents. There is a strong bias to open A1 schemes with tenant engineering/ added value opportunities. The central asset management objective is to enhance rents and therefore value through asset initiatives. Improving planning consents is also an important part of this process. In the current market parks need to be well placed to capitalise on future rental growth via improved tenant line-ups generating increased visitor counts and turnover.
Managing Relationships
The scale of retail assets under management allows LGP to maximise relationships with retailers, advisors and local authorities. These relationships are an essential driver to performance and provide a strong platform from which to enhance value.
