Intu Properties PLC intu properties - Leasing Update

TIDMINTU

Intu Properties PLC

18 October 2018

18 October 2018

intu properties - Leasing Update

Mazda, Shortlist Media, Monki, Oliver Bonas and Typo are among some of the latest brands to sign new leases with intu which owns and manages some of the best shopping centres in the strongest locations in the UK and Spain.

Highlights from intu's latest leasing snapshot, covering the period from August 2018, include new openings for Debenhams, anchoring the GBP180 million intu Watford extension and featuring the department store's first Beauty Hall of the Future concept, with 24 new brands and two great dining options.

Selected leasing highlights from the period:

   --     High quality retailers choose intu centres to open new stores 

o Swedish fashion retailer Monki, part of the H&M Group, will launch its latest store at intu Eldon Square in November taking 3,700 sq ft of space

o Oliver Bonas signed up for a 2,000 sq ft store at intu Chapelfield in September

o Debenhams launched its new concept store at intu Watford in September, the first to open as part of intu Watford's GBP180 million development

o Australian stationery and gifting retailer Typo is opening at three intu centres including 1,250 sq ft at intu Watford's new extension, which opened in September

o Abercrombie & Fitch opened its eagerly awaited brand new 5,554 sq ft store at intu Trafford Centre in September, the first of the brand's eight new prototype stores to be launched in Europe

   --     The trend of successful retailers upsizing to create flagship stores continues 

o Next opened one of its biggest stores in the UK at intu Merry Hill, in August. At 55,000 sq ft it is nearly double the size of its previous store at the centre

o Primark will also open an extended new store at intu Merry Hill this year by expanding into a former BHS to create 70 per cent more space

   --     intu further increases the leisure and experiential offering at its centres 

o Partnership with Mazda to bring virtual driving experiences to five intu centres

o Stylist Live, hosted by a number of lifestyle, fashion and beauty brands, with talks from a number of influencers, experts and celebrities, came to intu Trafford Centre this month, attracting tens of thousands of visitors

o meetspace VR is launching Zero Latency, the global leader in free-roam, multiplayer virtual reality (VR) gaming, with the first site in the UK at intu Victoria Centre in Nottingham in October

o InmotionVR, another VR Offering, is set to roll out its content creation, motion platforms and proprietary content management at four intu centres

o Rock Up, the popular climbing and adventure centre, opened at intu Watford in September with 8,450 sq ft of double height space

David Fischel, intu chief executive, commented: "Despite wider industry challenges, exciting, innovative brands are choosing our prime locations which offer a compelling mix of retail, leisure and experience, and deliver reliably high footfall. This demand shows just how important winning destinations like ours are to customers and brands alike; where customers come for not only the very best choice of shops and brands under one roof, but also that all-important shopping day-out experience.

"The highly successful opening of Debenhams at our brand new intu Watford extension is a great example of how landlords can collaborate closely with retailers to help them deliver the very best destination stores that create value for their both their business and customers."

Additional details:

Dynamic leasing activity

Mazda, the Japanese multinational car manufacturer, partnered with intu in August to bring virtual reality driving experiences to thousands of customers. This saw the manufacturer bring virtual driving experiences to intu Lakeside, intu Braehead, intu Trafford Centre, intu Victoria Centre and intu Milton Keynes

The experiences offered customers the chance to enjoy a 360-degree immersive virtual reality test drive of the Mazda sports cars MX-5 or CX-5. Using VR goggles, and whilst seated in a real Mazda car, customers experienced a thrilling virtual drive along the winding roads of the Italian Alps, or around the famous Longcross test track in Surrey. As part of the leasing arrangement, Mazda also worked with intu to optimise its brand through intu's affiliate website, intu.co.uk, and across intu centres via ambient media.

Elsewhere, Shortlist Media brought a new version of its large-scale consumer event, Stylist Live, to intu Trafford Centre in September for its first ever activation outside London. The newly expanded event attracted tens of thousands of people and saw the publisher occupy space throughout intu Trafford Centre for an entire weekend. Shoppers were given the chance to join in with a brand new, immersive shopping experience, demonstrating intu's commitment to innovative and exciting retail leasing. The event hosted a number of lifestyle, fashion and beauty brands, a Stylist Live catwalk, as well as a series of talks from a number of influencers, experts and celebrities.

Swedish fashion retailer Monki will launch its latest store in November at intu Eldon Square in Newcastle. The new 3,700 sq ft store will involve a concept fit-out from Monki, bringing the brand's own unique aesthetic to the centre. The clothing brand, which is part of the H&M Group, launched its first UK store in London's trendy Carnaby Street. It now has over 115 stores in 15 markets and is expanding into carefully selected physical locations in the UK.

Popular British lifestyle brand Oliver Bonas has signed up for a 2,000 sq ft store at intu Chapelfield, as the retailer continues its expansion in the UK. The brand will offer its unique range of homeware, gifts and fashion collections, designed in-house by the Oliver Bonas team.

Australian stationery and gifting retailer Typo is opening new stores at three intu shopping centres as part of its expansion across the UK. These include a 1,250 sq ft unit at intu Watford, which has just unveiled a GBP180m extension. The Typo opening in September at intu Watford followed its arrival at intu Merry Hill earlier that month within a 935 sq ft unit. A third 1,114 sq ft store will open at intu Eldon Square in October, placing Typo at the heart of Newcastle city centre.

Store openings

September saw the opening of Debenhams at intu Watford. The new concept store is the first to open as part of the centre's GBP180m development which adds 400,000 sq ft of retail and leisure space, elevating Watford to one of CACI's top 20 national retail destinations, ranking alongside Edinburgh and Bristol. The growing appeal of intu Watford as a shopping destination will also increase its potential catchment population from 1.6 million to 2.8 million, making intu Watford the number one choice for even more shoppers. Retailers and operators will also reap the benefits of a 47% increase in market potential and a 73% increase in comparison goods expenditure.

Following a lease-signing earlier this year, contemporary clothing retailer and American favourite Abercrombie & Fitch opened its eagerly awaited brand new store at intu Trafford Centre in September which drew in thousands of customers during the first week of launch alone. The store is one of eight new prototype stores launched by Abercrombie & Fitch since February 2017 and the first in Europe. The new design demonstrates improved customer engagement: the layout includes innovative fitting rooms with separate controls for light and music, as well as a phone charging dock. Selected fitting rooms act as private suites accommodating larger groups of friends and families, while increased cash desks enable a quicker and more accessible checkout experience.

At intu Merry Hill, Next opened one of its biggest stores in the UK in August which at 55,000 sq ft is nearly double the size of its previous store there. Primark will also open an extended new store at intu Merry Hill this year by expanding into a former BHS to create 70 per cent more space.

Leisure offering strengthens at intu's shopping centres

meetspace VR is launching Zero Latency, the global leader in free-roam, multiplayer virtual reality (VR) gaming, with the first site in the UK at intu Victoria Centre in Nottingham in October, boosting the centre's combined retail and leisure offering. Founded in 2014 in Australia, Zero Latency is the pioneer and global leader in warehouse scale, free-roam, multiplayer virtual reality entertainment. The brand's advanced platform provides up to eight users with a fully immersive gaming experience - including battling armies of zombies and droids or drones - where players can use their bodies as the controller, via wearable technology.

Separate VR operator, InmotionVR, announced it has signed a string of retail leases with intu across four of its centres. The VR operator, which is set to roll out its content creation, motion platforms and proprietary content management to intu Derby, intu Eldon Square in Newcastle, intu Uxbridge and St Davids in Cardiff marks a developing new trend for exciting VR experiences in retail shopping centres.

Elsewhere, intu Watford has welcomed Rock Up, the popular climbing and adventure centre, boosting the centre's combined retail and leisure offering. Rock Up, which opened September 2018, occupies a huge 8,450 sq ft double height space at the centre.

intu as a socially responsible business

intu has been ranked in the top 200 companies globally for gender balance and gender equality as part of the 2018 Equileap Gender Equality Global Report and Ranking, ranking 99 from a global list of 3,000 companies analysed.

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ENQUIRIES

Justin Griffiths, Mazar Masud, Victoria Heslop

Powerscourt

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Mark Thomson, Ceyda Phillips

intu

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NOTES FOR EDITORS

intu owns and manages some of the best shopping centres, in some of the strongest locations, in the UK and Spain.

Our UK portfolio is made up of 17 centres, including ten of the top 25, and in Spain we own three of the country's top 10 centres, with advanced plans to build a fourth.

We are passionate about creating compelling experiences, in centre and online, that make our customers smile and help our retailers flourish.

We attract over 400 million customer visits and 26 million website visits a year offering a multichannel approach that truly supports retail strategies. In 2017, we launched the UK's first tailor-made promotional services model to help brands as they look to optimise their portfolio or expand their UK coverage.

Our strategic focus on prime, high-footfall flagship destinations, combined with the strength and popularity of our brand, means that intu offers enhanced footfall, dwell time and loyalty. This helps our retailers flourish, driving occupancy and income growth.

We are committed to our local communities, with our centres supporting over 120,000 jobs (representing about 3 per cent of the total UK retail workforce), and to operating with environmental responsibility. We have already met or exceeded a significant number of our 2020 environmental targets.

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October 18, 2018 02:01 ET (06:01 GMT)