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Who owns the high street?

UncleEbenezer
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Who owns the high street?

#227889

Postby UncleEbenezer » June 8th, 2019, 1:01 am

With the high street's woes regularly hitting the headlines (most recently re: Arcadia), I wonder who are the property companies dealing with it? Ditto other property sectors, from plush offices to peripheral trading estates and warehouses.

Some overview of the spread of asset classes held by different propcos would seem like a good startingpoint for DYOR! Anyone know where I might find such information?

77ss
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Re: Who owns the high street?

#227900

Postby 77ss » June 8th, 2019, 8:19 am

UncleEbenezer wrote:With the high street's woes regularly hitting the headlines (most recently re: Arcadia), I wonder who are the property companies dealing with it? Ditto other property sectors, from plush offices to peripheral trading estates and warehouses.

Some overview of the spread of asset classes held by different propcos would seem like a good startingpoint for DYOR! Anyone know where I might find such information?


I find that the annual reports of TR Property (TRY) make interesting reading. This IT invests across a variety of property sectors (and in a spread of European countries). The most recent one is at the end of May, so pretty well up to date.

https://www.investegate.co.uk/tr-proper ... 00035302A/

UncleEbenezer
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Re: Who owns the high street?

#227907

Postby UncleEbenezer » June 8th, 2019, 9:38 am

I'll take a look. But "the annual report of [foo]" isn't really a startingpoint for an overview of "who owns what". It's more like what I'd expect to be a third stage, after identifying "[foo] looks interesting" from the overview, and then checking out financial comparatives on theaic or trustnet.

SalvorHardin
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Re: Who owns the high street?

#227924

Postby SalvorHardin » June 8th, 2019, 10:32 am

I don't know of any central register of high street properties that's easily accessible. Many institutions own high street properties; final salary pension schemes, life insurers (particularly through their with-profit funds), general insurers and local authorities. Local councils have been piling into high street properties in the last few years, the story linked below mentions that almost one-third of the shopping centres sold in 2018 was bought by the local council.

https://www.bbc.co.uk/news/business-46625912

Off the top of my head here are a few quoted property companies (before anyone mentions it, yes I know I've left companies out):

British Land is fairly exposed to the high street, as is Land Securities, Hammerson and to a lesser extent Town Centre Securities and Intu. Most UK quoted property companies will have some high street exposure, unless they specialise in other areas. An example of this is SEGRO which is very big in warehouses and industrial estates. SEGRO's shares are up 104% in the last five years; in contrast British Land is down 20% and Land Securities is down 23%.

Derwent London, Great Portland Estates and Shaftesbury, have a lot of high street properties. But they shouldn't suffer anything like as much because almost all of their properties are in Central London in the area enclosed by the circle line. Central London isn't going to experience the same sort of deterioration that the high streets in most of the rest of the country have; demand for property within Zone 1 is pretty strong nowadays. It's the regional high streets that are suffering, not the major shopping streets in the big cities.

It's a case of looking at the company's website, presentations and annual reports to get an idea as to their exposure. Though from what I've seen of companies' share prices whilst writing this post, the change in the share price over the last five years tells you how much exposure they have to the high street (as does the share price discount to the NAV).

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Re: Who owns the high street?

#228108

Postby gbjbaanb » June 9th, 2019, 12:13 pm

and just on the other thread is New River REIT (NRR). That is designed to hold retail and leisure properties.
Local Shopping REIT is closing down, sold off nearly all of their properties, but at auction generally to private investors as it seems other REIRs don't want retail either.

scrumpyjack
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Re: Who owns the high street?

#228134

Postby scrumpyjack » June 9th, 2019, 2:41 pm

One pointer to who owns a lot of retail property is which property companies shares sell at a big discount to market value. The market has pushed down very sharply the share prices of those companies whilst the surveyors valuations had not caught up with reality.

UncleEbenezer
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Re: Who owns the high street?

#228208

Postby UncleEbenezer » June 10th, 2019, 12:18 am

SalvorHardin wrote:I don't know of any central register of high street properties that's easily accessible. Many institutions own high street properties; final salary pension schemes, life insurers (particularly through their with-profit funds), general insurers and local authorities. Local councils have been piling into high street properties in the last few years, the story linked below mentions that almost one-third of the shopping centres sold in 2018 was bought by the local council.

That's mildly interesting - thanks. So a lot of it lies outside ownership of vehicles that can be traded? That could affect the investment case, if some of them have non-commercial primary objectives, and perhaps rather different management to a propco. But I hadn't imagined anything like a register, more if there were something like a report somewhere with an overview of commercial propcos and pie-charts showing their asset mix (high street or retail being one category).
scrumpyjack wrote:One pointer to who owns a lot of retail property is which property companies shares sell at a big discount to market value. The market has pushed down very sharply the share prices of those companies whilst the surveyors valuations had not caught up with reality.

I've always regarded those valuations as a potential concern in any property portfolio. But yes, big discounts are one of the things I thought might be interesting. I'm always far too early when I see straws in the wind, but business rates reform could do wonders for the sector if it happens, and with the halfwit Portas no longer God of the High Street there might be one fewer negative influence.

BusyBumbleBee
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Re: Who owns the high street?

#228256

Postby BusyBumbleBee » June 10th, 2019, 9:55 am

Well UncleE - there is at least one PropCo which is trying to make money from managing those assets bought by councils see the NewRiver Topic for more details but they say
NewRiver REIT plc (‘NewRiver’) is a leading Real Estate Investment Trust specialising in buying, managing, developing and recycling convenience-led, community-focused retail and leisure assets throughout the UK.


PS - A J Bell (YouInvest) have a special offer at the moment : sell small holdings (under £2k) for free - you may get rid of some of the rump VCT holdings - I shall - kind regards - BBB

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Re: Who owns the high street?

#228502

Postby Charlottesquare » June 10th, 2019, 8:39 pm

One source of information in Scotland is the Scottish Assessors Website, search by address (say Princes Street, Edinburgh) and if you click the ref number on left re each property it comes up with a tab that often says who owns that property (proprietor rather than occupier which is shown on first screen)

https://www.saa.gov.uk/search/?SEARCHED ... ET#results

No idea if you have similar down south.

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Re: Who owns the high street?

#228610

Postby brightncheerful » June 11th, 2019, 10:16 am

There was a time when I knew who owned most of the properties in London suburban high streets but so much has changed over the years I doubt I've kept up. As for provincial cities and towns, I doubt many if any of the companies that have been mentioned on this thread have much high street ownership. Once upon a time Land Securities through its subsidiary Ravenseft Properties Ltd owned the largest portfolio of high street shops but they gradually sold off most.

In central London, ownership tends to be any one of the landed Estates, eg: https://whoownsengland.org/2017/10/28/who-owns-central-london/
In Oxford and Cambridge the respective universities are substantial landowners.

Generally, ownership composition is insurance companies and institutions such as Aberdeen Standard, Columbia Threadneedle, Prudential, Aviva, Legal & General, CBRE Investors, La Salle Investment Management, Crown Estate, pension funds and sovereign investors; quoted propcos such as F&C REIT, British Land, Daejan (Freshwater Group), Capital & Counties, Custodian REIT, Intu, Hammerson, Land Securities, Derwent, Town Centre Securities, etc; higher profile but rarely in the news private investors such as William Pears Group, Orchard Street, Topland, Englander group, Church Commissioners, and lower/low profile thousands of private charities, family trusts, unlisted companies and private individuals, both domestic and overseas. owning between one and 100+ shops. Many long-established multiple retailers own their own freeholds and might have non-trading assets let to third parties. In provincial towns particularly, local shopkeepers might own a high proportion of the shops.

There isn't a readily accessible register of domestic ownership in England and Wales - but there is a register of overseas investor interests - but if you really want to know then comb through Companies House and the Land Registry. It costs £3 for a copy of title from the Land Registry but you'd need a post code, address and or/title number.

Fragmented ownership is a contributory factor in the failure by do-gooders wanting to save the high street.

General info here:
[url]https://www.primelocation.com/discover/property-news/top-10-richest-property-owners-in-the-uk/#aCFV20hmyQ6HdKhG.97
[/url]

https://www.bpf.org.uk/reits-and-property-companies

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Re: Who owns the high street?

#228614

Postby brightncheerful » June 11th, 2019, 10:33 am

Charlottesquare wrote:One source of information in Scotland is the Scottish Assessors Website


I wonder how often the information is updated. I searched 177/189 High Street Dumfries (a Debenhams store investment bought by Panther Securities in December 2018) and SAW's entry still shows the previous landlord.

brightncheerful
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Re: Who owns the high street?

#228617

Postby brightncheerful » June 11th, 2019, 10:35 am

But I hadn't imagined anything like a register, more if there were something like a report somewhere with an overview of commercial propcos and pie-charts showing their asset mix (high street or retail being one category).


try this: https://www.bpf.org.uk/sites/default/files/resources/PIA-Property-Data-Report-2017.PDF

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Re: Who owns the high street?

#228700

Postby Charlottesquare » June 11th, 2019, 2:40 pm

brightncheerful wrote:
Charlottesquare wrote:One source of information in Scotland is the Scottish Assessors Website


I wonder how often the information is updated. I searched 177/189 High Street Dumfries (a Debenhams store investment bought by Panther Securities in December 2018) and SAW's entry still shows the previous landlord.


Really depends upon the entities involved notifying Council and/or correctly completing the enquiry forms (annual I think) that we all get plagued with.

We are reasonably good notifying all changes (owner and tenant) as from past experience not keeping the records up to date leads to real grief with both the rates and the water companies when sorting their incorrect billings, but I do appreciate not all owners and occupiers deal with these matters promptly upon change.


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