Supermarket Income Reit Share Discussion Threads

[belluci] 20/4/2023 19:56

Thank you My email address is [e-mail]

[weaverbeever] 20/4/2023 19:44

Thanks for reply. I've personally sold off all my flats (I had 4 blocks of flats as well as numerous single flats). I only have two remaining flats in a converted terrace house. I now concentrate on family houses and small commercial units and shops and offices.. I think your question is how to contact owners of blocks of flats to see how to help them by running these blocks for them? Probably something to discuss off this forum. If so we can DM somehow and continue the conversation

[belluci] 20/4/2023 19:05

Hello Weaverbeever slightly off topic. I saw that you stated your a landlord. I have a block management company, I trying to find the best way to get of of landlords to offer block management services. In your experience how is this best done.

[weaverbeever] 20/4/2023 15:20

So I'm a landlord of both residential and commercial property. In residential I'm responsible for the EPC. But commercial is more complex. Trouble is for example in a retail environment the landlord generally let's as a shell. And the tenant then does the fit out. So if a landlord were to spend a fortune insulating the walls and ceilings, the tenant might simply rip it all back out as part of the shop fit.

[jg231] 20/4/2023 11:54

On EPC for SUPR, the latest results presentation says that the portfolio is 84% EPC C or above already. As I understand it, in supermarkets (as opposed to office or sheds) the tenants do a lot of the sustainability upgrades themselves (LED lighting, switching to electric heating, etc.). SUPR's EPCs have been gradually improving and they haven't spent any capex.

[jg231] 20/4/2023 11:50

You are right scruff1. Interestingly, the discounters have been passing through far higher inflation (24%!) than Tesco and Sainsbury's (albeit still about 14%). On reflection, it's not surprising because Aldi and Lidl operate on wafer thin margins, so they have nowhere to go other than putting up prices. This is from Which

[jonwig] 20/4/2023 09:25

It appears than the EPC of any building (domestic or business) can be improved by roof solar panels. Supermarkets would benefit particularly with large flat roofs. And fitting behind the meter would lead to stable, predictable energy costs.

This is precisely what Atrato's ROOF company can offer.

[williamcooper104] 20/4/2023 09:09

Low value offices v sensitive Eg £50 psf to get to EPC B is manageable on a £1k plus psf asset But it's a big problem on a £200 psf cap value building

[mindthestash] 20/4/2023 09:01

Thanks all re EPC and esp Nexus for his DD


None claimed that the tenant was responsible for expenditures. All said that EPC work would be carried out during the normal course of business, such as re-gearings, improvement initiatives etc..

I'm forming a view this is going to hit landlords and esp retail. Im sceptical of the bland assurance given to nexus by prop managers and doubtful that this is something that can be absorbed by landlords standard maintenance/capex budgets --as it seems to me the EPC requirements ramp up to B over time.

[spectoacc] 20/4/2023 08:14

1.5p XD this morning.

[scruff1] 19/4/2023 19:06

Chuck and jon
This is my last word on it but this happens on many boards. My comment was on problems that may be caused by properties whether sheds or any other having to meet with new thermal requirements. If that wasnt exactly to topic or your liking then so be it. If someone as often happens makes a comment that I dont think is particularly on topic or even way off topic I would just ignore it or if I found it particularly offensive would filter the poster though I rarely do. I certainly wouldnt make an offensive personal comment to the poster, especially on their grammar. I find off topic preferable to rudeness. So just crack on.

As for the LLoy thread (which it isnt really though there is another for on topic stuff) it is what it is. Some of us like to let off steam and its good banter. If you are a bit precious or its not your thing you ignore it and move on. Its quite simple really.

[nexusltd] 19/4/2023 18:30

As some of you may remember I flagged up my concern on EPC compliance capex.

During CYQ1 I have spoken to, or exchanged emails with, several commercial REIT managers, quizzing them on percentage of the 31/12/22 ERV derived from assets: a. with EPC rating F & G., b. with EPC rating of D & E, c. without a current EPC certificate. None claimed that the tenant was responsible for expenditures. All said that EPC work would be carried out during the normal course of business, such as re-gearings, improvement initiatives etc.. My view always was, and still is, that the property owner is responsible for the fabric of the building. Some properties are EPC exempt; e.g. warehouses that have no heating requirements. In Scotland the EPC regulations are different, and significantly less stringent.

[jonwig] 19/4/2023 17:42

scruff, chucko - I have more than pity, I have up-voted!

On EPC responsibility, it appears that the landlord must provide one for a new tenant:

An EPC informs the tenant about the energy performance of a property. It is a legal requirement for the landlord to provide a commercial EPC prior to your property being marketed. A copy of an EPC must be made available to prospective tenants at all times. A commercial EPC is valid for ten years from the date of issue.

It also appears that the landlord is responsible for paying for the cert and delivering it.

Also I read: "from April 1 2023, both new and existing commercial lettings must have an EPC rating of E or above."

I got all that (and there's more) from a google search. What isn't clear is whether the tenant pays extra for any upgrading required.

[chucko1] 19/4/2023 17:22

Scruff1, can I say what a welcome addition you are to this board in any case. I recall from the LLOY board that you are in permanent danger of matrimonial bruises.

Jonwig, have pity.

[scruff1] 19/4/2023 16:50

JON
Not sure what happened there (I should have checked it) and should have been - not just sheds. I realise how important it is to to write correctly but if I was to comment on all spelling mistakes and grammatical errors the wife would wallop me for being pedantic. Sorry too for being off topic after all time is short and there is so much to say about SUPR. Sorry Sir

[mindthestash] 19/4/2023 15:33

Thanks Jonwig. I'll certainly have a look at atratos model. I try and stay away from regulatory driven investment but there's no stopping the renewable juggernaut

Most leases I had dealings with back in the day tried to place regulatory compliance on the tenant for their use. Anyone know if the EPC requirement from new primary legislation allows the tenants here to dodge this bullet and hand the hospital pass to the landlord, cos that's how the press comments come across ie "you will be unable to let premises below EPC level B etc...

[jonwig] 19/4/2023 15:00

mindthestash - this isn't a new problem, and solutions are at hand.

For example, fitting your shed roof with solar panels can work wonders for your EPC:



(So how about Atrato's ROOF, which does just that?! Luck, or foresight?)
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scruff - you're off-topic. (And old fogies like me can't read text which isn't formatted and paragraphed properly.)

[scruff1] 19/4/2023 13:38

mind
Its what do you guys thinkjust sheds. Its anyone with an older property which they currently rent and had planned it for retirement income (and anyone who wants to rent - already the signs are that landlords are selling and rent rapidly rising as has happened elsewhere. Its also people with older houses. If you have a mortgage you could be in trouble or if were hoping to downsize that could be scuppered. As usual politicians have neglected to think through the consequences of 'hey Ive got a really good plan lets do this quick before the election' and given due diligence both barrels. They remind me of a drunk staggering through a garden of cloches

[williamcooper104] 19/4/2023 09:06

Yep that's woeful too The French have done a far better job

[jonwig] 19/4/2023 09:05

chucko - I don't think any country in Europe can raise a flag saying their policy is the best.

Germany is in the process of building a nationwide hydrogen grid (and attracting investment out of the UK). Their strategy appears to be that EVs are unsuitable for heavy road haulage (weight is the factor), and Mercedes is concenttrating on hydrogen trucks.

Somehow, Germany is managing to build gas storage at speed, whilst we're just Rough Cavemen here.

[mindthestash] 19/4/2023 08:59

hows this for an energy policy

Research from international real estate advisor Savills has revealed that a total of 185 million sq ft of all UK retail space is at risk of becoming unlettable by next year, if the Minimum Energy Efficiency Standards (MEES) are not met.

The figure follows ambitious targets set by the Government which will prohibit commercial buildings with an EPC (Energy Performance Certificate) rating of Grade F or G being let from next year (1 April 2023), with a longer term target for all commercial buildings to be rated a minimum of Grade B by 2030.

Has anyone any idea how these giants sheds with 200+ freezers are going to meet Grade B?

[chucko1] 19/4/2023 08:42

WC, if you thing policy is bad here, try Germany.

[scruff1] 19/4/2023 08:34

A bit of climate change may make it shorter too. Easier growing veg in the warmth and fortunately May June July and August should see a bit of global warming. A failed energy policy by successive govts has to shoulder a lot of the blame - as indeed quite a number of other failed policies.

[scruff1] 19/4/2023 08:27

I dont deny it but I dont know about you guys but I dont see 19% food inflation. It certainly isnt in Tesco for most basics