about the pma out-of-town landlords conference · essence, forewarned is forearmed! 1954 act...

Protecting retailers occupancy interests through effective co–ordination

About the PMA

Out-of-Town Committee

Landlords Insurance Premium

ConferenceReport

A Retailers View

Legal Update

Questionnaire

PMA Events

NOVEMBER / 2012 / ISSUE THREE

PMA Newsletter 2012_V4.indd 1 08/08/2012 11:17

What is the PMAThe Property Managers Association represents the interests of retail organisations by enabling their respective property

professionals, to work together for their mutual benefit.

A brief history of the PMA Formed in 1975, the membership now includes around 105 of the country’s leading retailers. Members range from major High

Street retailers to out of town large space occupiers. It can boast a number of significant achievements, which have enhanced

the professionalism of the industry and improved the dialogue between landlords and tenants including work on the service

charge code, co-ordination of reviews on large schemes and shopping centre marketing guide.

The structure of the PMAAn executive Committee of elected members manages the Association. This committee is supported by a number of specialist

user groups and sub-committees representing members’ interests.

Our aims The role of the PMA is to raise and maintain standards of estate management within the retail industry

to ensure that property costs are kept to an affordable level and achieve maximum value for money.

This is being achieved through:

Communication - providing a framework for effective communication between property managers

Education - distributing appropriate information to members to help in their roles

Lobbying - helping to influence Landlords, Government, property professionals and other bodies

on issues relevant to the members

Liaison - working with other property trade associations and professional bodies such as the RICS,

BRC and BCSC

We currently have 104 companies listed as PMA Members. Since July 2011 we have new members namely, Bestseller Wholesale UK Ltd, Foot Locker Europe JD Sports Fashion plc, Steinhoff UK Group Property, Super Group plc, The Edinburgh Woollen Mill, The Money Shop and Waterstones.


Once again I am pleased to welcome

you to our PMA newsletter, both as a

means of updating our membership

and informing those who are new to

the work of the PMA.

The recession and its ongoing impacts

on the retail industry continues with

further casualties on the high street.

Retail property and occupancy issues

remain a key factor the recovery of

the industry.

The last year has seen the publication

of the high profi le Mary Portas Review,

and the initiatives to aid the recovery

of the high street. The PMA similarly

continues to strive to challenge on

behalf of our members on the key retail

property issues, and drive coordination

between our members.

Our recent Conference held at Old

Trafford in Manchester in May brought

enlightening debate on what are the

main issues to our members. The ability

of a retailer to realign their portfolio

to their business needs is key, and

lease fl exibility is now seen as a key

strategy for retailers’ portfolios.

Given the concern over the vacancy

rates, new initiatives are essential to

the future health of our retail centres,

including the likes of the thorny issue

of business rates liabilities and car

parking charges to name a few.

The PMA Committee welcome your

feedback on any initiatives we

should focus our resource on and

the questionnaire at the back of

the newsletter helps us get your

honest feedback.

The PMA will be present at the BCSC

Conference in Liverpool in September,

so please come and visit us at our stand.

As always the PMA continues to be an

important organisation for our retailer

member’s property interests, and

your help, time and suggestions

are always welcome.

James Hamilton

Head of UK Acquisitions & Estates,

Costa Coffee

PMA Presidents update

A new web site has been launched

this year!

New members area Recruitment page Members blog

Get blogging! - Easy way to connect

and share your views with the members!

The PMA are now on Linked In.

and Twitter

Visit www.linkedin.com

login: [email protected]

password: pmaboard

Visit www.twitter.com

login: PropertyManAssn

password: pmaboard

Contact PMA PMA Administration and Event

Co-Ordinator

Louise Oliver

The Dolls House, Audley End Business Centre

Wendens Ambo, Saffron Walden,

Essex, CB11 4JL

Tel: 01799 544904

Fax: 01799 542991

Email: [email protected]

PMA connect with the members

You may or may not already be aware

that the PMA has a sub-committee

for the ‘Out of Town (OOT)’ sector

specifi cally for retailers/occupiers

of Retail Warehouse Parks across

the UK. We meet every 4 months

in various locations across the UK

where we; discuss issues, host talks

on hot topics from industry experts

and invite presentations from service

providers i.e. Facilities Management

companies, Solicitors fi rms, etc.

The Retail Warehouse OOT tenant

meetings are an opportunity for

retailers to get together to discuss

issues that we have with our Landlords,

both negative… and positive! The aim

is to communicate with our Landlords

more effectively with the backing

of the members of the PMA, and to

improve working relationships.

Details of the meetings are posted

on the PMA website well in advance

under the ‘Events’ section and all

members are welcome to attend to

make the most of their membership

with the PMA.

I look forward to seeing you there.

Alex Stanhope MRICS

Halfords

OOT Committee

propertymanagersassociation.com

A new web site has been launched


Landlords Insurance Premium A retailers viewBackground

In recent years there has been a

significant improvement in the way

landlords compile, manage and

communicate their service charges to

their tenants. This has had led to far

greater transparency regarding one of

an occupiers major costs.

I believe that the property industry now

needs to extend this level of interest to

landlord’s insurance premiums. Whilst

not being of the same financial value it

is a significant cost that occupiers are

having to pay, with in many cases, little

or no explanation from the landlord.

Whilst in new leases some element of

control can be secured I would suggest

that at no time has a new store been

turned down because of the wording

of the insurance clause. However the

most pressing problem lies with the

vast number of existing leases and their

inherent problems.

Current situation

The payment of such premiums is

dealt with in a lease with often only

a few lines of generic wording giving

I believe a significant proportion of

landlords ample opportunity to simply

charge their tenants a cost without any

satisfactory way for this to be discussed

or challenged.

Many landlords send in their demands

sometimes several months after the

renewal date often without an insurance

schedule and expect payment without

dispute. There is a wide variation across

landlords and their agents as to what

information is passed to the tenant

to allow them to make the necessary

judgement.

Often if the premium is disputed

the answer is “well it is what it is”.

Landlord’s agents often have limited

knowledge and simply pass on the query

to the insurer who will come back to the

tenant after several months with a bland

and confusing explanation still expecting

payment without question.

There is a dramatic inconsistency with

regard to the level of premiums for

same types of property in the same part

of the country with a complete lack of

transparency as to how the premiums

are calculated. I am sure most tenants

would have no objection to pay such

premiums if there was some rational

explanation attached.

There are several problems that

need addressing.

n A lack of transparency over how the

charges are calculated

n A concern that tenants are paying

unnecessary charges

n There appear to be few actual

suppliers

n There is a nationwide inconsistency

in premiums

n No simple way to challenge a

premium

n Lack of knowledge by

managing agents

n Lack of consistency of

information provided

n What is provided is often too

confusing and not relevant

n No benchmarking in the property

or insurance industry

Summary

I appreciate that insurance is often the

lowest cost for a property occupier

however I am sure that some occupiers

have started to look at this cost in far

more detail.

The improvement in service charge

transparency shows what can be done

and I see no reason why the same

measures cannot be taken with regard

to insurance premiums. New leases need

address this matter and there should be

a minimum level of consistency applied

across the industry.

The ultimate recourse is to the solicitors

which can be a costly and lengthy

exercise for what on its own is often a

relatively small amount compared to the

overall occupancy cost of the store.

Landlords and their agents now need to

treat these charges in the same manner

as service charges. I believe tenants should

receive clear and concise information as

to what they are being asked to pay with

some level of justification.

If as occupiers we can pull together

our experiences then I would hope

that some influence can be brought to

bear in attempt to end the continuing

inconsistencies.

Nick Kidd

Senior Estates Manager

Wilkinson Hardware Stores


The documents and guidance are available at

http://www.rics.org/smallbusinesslease

As a fi nal thought, I do wonder what merit there

may be for the future in leases being all inclusive

of both insurance and service charge.

Building insurance – a reminder

The government “deal” with the insurance

industry runs out next year. With the issue of

fl ooding very much in everyone’s mind, there is

no guarantee that continuity of fl ood insurance

will remain. While there is perhaps not much that

can be done about existing property, I strongly

recommend that appropriate fl ood searches be

undertaken if you are acquiring new property.

Even awareness of the risk of fl ooding may result

in fi t out in such a way as to reduce the period of

closure/cost of clean up, if the worst happens. In

essence, forewarned is forearmed!

1954 Act renewals

In my view, these are becoming increasingly

frustrating and costly. Slavish adherent to 1980s

lease terms does no one any favours. A deal

negotiated between a major landlord and a high

street multiple on one property should not then

be ignored by the very same landlord’s solicitors

with the same parties a few months later!

This is unhelpful at best. There is much

which can be done here by landlords in

customer service terms.

14 November 2012 Business Lunch Seminar

at SNR Denton

I am delighted to be able to confi rm the date for

this Seminar. The precise topics are under review,

but may include:

n 1954 Act renewals – what tenants should be

entitled to expect?

n Cost of consents – and what should

require consent.

n Break clause drafting.

n Investing time at the start.

Nick Darby

SNR Denton UK LLP

DDI: 020 7246 7466


On 26th July, Anna Collier carried the

Olympic torch along the Kings Road in

London. Anna is co-founder of The 3 Little

Miracles Fund and wife of Cushman and

Wakefi eld retail partner, Andrew Collier.

The 3 Little Miracles Fund has been the

PMA’s chosen charity for the past 12 months.

Anna was originally nominated to carry the

torch by the Chelsea & Westminster Hospital,

for which the charity has raised £250,000 to

purchase life saving neo-natal equipment.

Anna said before the torch run “to carry

the torch through Chelsea, close to the

hospital where the triplets were born will be

humbling and incredibly emotional for me

and my family. What started off so badly

for us in the Chelsea & Westminster Hospital

and has led me to carrying the Olympic

torch through the streets of London, my

home town, will be an amazing honour and

something I will always cherish”.

The charity has gone on to raise a further

£100,000 to purchase life saving incubators

for other hospitals in the UK. With the

£17,500 raised by the PMA at the 2011

Christmas Lunch, the charity is currently in

discussions with Plymouth General Hospital

to buy them a much needed state of the art

surgical incubator.

3 Little Miracles charity fundraising Olympic torch bearer!

Legal update

RICS Small Business Retail Lease

4 July marked the launch of the RICS Small

Business Retail Lease. With a vacancy rate of

over 11% across UK high streets, the RICS is

looking to do what it can to revitalise this vital

section of the UK economy. With confi dence

at a low ebb, what can be done to encourage

entrepreneurship, to help small businesses,

and to persuade those thinking about a new

start-up to take the plunge?

Commentators often say that property

problems give some of the biggest headaches

to small business, perhaps through infl exible

arrangements. It is at the stage of starting

new business that those involved most need

legal advice, but can at least afford it. So

much the better if some of those issues can

be removed, leaving the SME to concentrate

on the business itself. This is what the RICS

initiative is designed to do, in consultation

with the BRC.

In practice therefore it is a fl exible

arrangement and a real encouragement for

new business start ups. If this works, more

retail property will be occupied, and high

streets regenerated. Landlords will receive

rent, and tenants not forced into insolvency

by infl exible property costs if the business

does not take off as expected. Business

planning is easier. In an ideal world these

arrangements may also encourage greater

bank lending to small business. As always,

the use of the documents, free from the

RICS website, depends on awareness.

While the initiative may not be directly

relevant to PMA members, you may have

sublet properties or smaller units, where these

arrangements would be suitable.

It is to their great credit that the BPF also felt

able to support this initiative.

Having been involved with the project from

the start, and having drafted the various

documents for the RICS, I would be delighted

to provide further information/details to any

member. My contact details are at the end of

this update. propertymanagersassociation.com


PMA Conference report

After many years at Old Trafford cricket

ground, the 2012 Conference moved

a short distance away to the football

ground which, for 1 day only, became

the “Theatre of Retail Dreams”.

The Conference was attended by a

record number of 160 delegates and

provided some excellent networking

opportunities. The PMA President,

James Hamilton, introduced the

Conference and, for the first time, a

Master of Ceremonies, in the form of

Simon Williets, kept everything on

schedule with an interesting program of

speakers throughout the day.

List of Speakers.

Dan Kidd of SNR Denton gave a

highly topical landlord and tenant

overview for retailers.

Andrew Dudley & John Grimes

of Land Securities gave a detailed

summary of both the development

program and the letting campaign

relating to that rare commodity, a major

new retail scheme opening in 2013,

namely TrinityLeeds.

Howard Morgan of Real Service,

supported by contributions from John

Gray of John Gray Service Charges

and Rob Wood of HMV, gave an

overview of the marketing budgets of

shopping centres.

Sean Gillies of Savills provided an

overview of the state of the retail

market in 2012. This encompassed

both the in town and out of town

sectors along with some analysis of the

investment market.

Louise Oliver gave delegates a

summary of the workings of the new

PMA website, ably supported by

Ed Budden.

Panel Discussion.

For the first time in many years, the

Committee had invited a panel which

comprised Gerald Jennings of Land

Securities (Landlord), Stuart Donald

of Disney (Tenant), Colin Flinn of

Tushingham Moore (Agent) and Nick

Darby of SNR Denton (Solicitor). The

idea was that a number of current day

topics would be debated following

the discreet promptings of James

Hamilton performing as Moderator.

Some of the points discussed by the

panel can be summarised below:-

Development Pipeline – likely to

recover in due course but, in the

meantime, expected to focus mainly

on infill and extensions of existing retail

space. Whilst extensions to existing

schemes have their attraction in terms

of building on existing retail offers,

they may be difficult to deliver at the

current time because of landlords

cashflows and limited bank lending.

Vacant Space - who is backfilling this?

There are valuation issues for landlords

in terms of their capital values. Should

landlords show more flexibility in terms

of lease length, perhaps a minimum

term of as little as one year.

Upward or Downward Rent

Reviews – do not seem to be the

top of retailers’ agenda. Main focus

in agreeing either a new acquisition

or a renewal with rent free periods,

cash incentives, and 5 year tenant’s

break on a 10 year lease. Pressure on

property departments to achieve tenant

flexibility.

Retailers being prepared to threaten to

leave at lease expiry.

The Portas Review – it was felt

that there is a focus on anything that


generates cash fl ow from a Council

perspective, such as parking charges.

The latter can clearly be a deterrent in

a diffi cult trading environment when

compared with, for example, free out

of town parking facilities. In respect of

rates, there is no link between rates

generated at the local level and the

actual income that Councils receive

from Central Government. Towns need

to be treated, and run, as a “business”

Secondary Shopping Centres

- there have been a number of

structural changes in terms of

ownership of secondary shopping

centres. This has lead to some very

inconstant landlord strategies with

these secondary retail assets.

Convenience of Retail Environment

- there is a need to make shopping

more convenient within the town

centre environment. BIDS can be part

of the answer to improving the retail

environment in struggling towns.

Free Car Parking – this really would

make a difference to some of the

struggling retail environments in

medium sized towns. Should some

former and unwanted retail property

be converted to other commercial uses

or even residential? A more fl exible

planning policy is needed.

Rating Consultants - the work of

rating consultants was discussed. Are

they picking up new information?

In particular, are they aware of

permanent changes to pitches and

hence appropriate rates levels? Could

MCC appeals be resolved much

quicker, thereby giving the necessary

relief to the retailer asap.

Summary

Since the Conference, Committee

members have received very positive

feedback from delegates in respect

of the venue, the speakers and the

topics, and the panel discussion.

Certainly, the latter was far ranging

and quite spirited at times with a

number of highlights being some

exchanges between members of the

panel and retailer delegates in the

audience. The Committee will now be

reviewing the Conference in further

detail so as to ensure, at the least,

an equally successful event in 2013.

The Committee would welcome any

additional feedback or suggestions

from the wider membership.

Simon Williets

Asset Manager

Starbucks Coffee Company

Direct Dial: 020 8834 5325

Mobile: 07957 773051




growth strategy and will be used as

a regional facility to service its stores

throughout Southern England.

Financial and Operational Highlights *n Turnover of £780 million - up 21.6%

(52 weeks +19.3%)

n Underlying EBITDA of £40.1 million

– up 26.5% (52 weeks +24.1%)

n Gross margin of £287.7 million – up

22.2% (52 weeks: +19.9%)

n Strong LFL growth of +2.3%

(all volume growth), outperforming

the market

n Net borrowings reduced from £34.0

million to £26.1 million

n 62 new stores opened. Total year

end store numbers 389 (+19%)

n Over 4 million customers served each

Poundland, Europe’s largest single

price discount retailer has announced

results for the 53 weeks ending 1 April

2012. The trading figures demonstrate

another successful year for Poundland

as it continues to expand across the

UK and Republic of Ireland, with the

successful opening of 9 stores in the

Republic of Ireland trading under the

“Dealz” fascia adding to the total

of 62 new stores opened, the year

ended with 389 (+19%) trading stores

creating c1,500 new jobs.

In addition, Poundland were delighted

to be announced winner of the 2011

Discount Retailer of the Year award.

Poundland is on track with its growth

strategy to open at least 60 new stores

together with a new south eastern

distribution centre in the current

financial year, during which, the

company will create up to 2,000 new

jobs. So far this year, 22 new stores

have already opened including 4 in the

Republic of Ireland. In April, Poundland

achieved another milestone by opening

its 400th store in Haringey, London.

The new 200,000 square foot south

eastern distribution centre will open in

August at Hoddesdon, Hertfordshire.

The warehouse supports Poundland’s

Poundland

week up from 3.5 million in 2010/11

n Continued focus on strong product

offering with over 3,000 product lines

including over 1,000 well known

branded products sourced directly from

major manufacturers

n European expansion with successful

opening of 9 stores in the Republic of

Ireland trading under the “Dealz” fascia

n c1,500 new jobs created

n Winner of 2011 Discount Retailer of

the Year award

Contact: [email protected]

Tel: 0121 526 8742

www.poundland.co.uk

*Fin

anci

al a

nd O

pera

tiona

l Hig

hlig

hts


Sponsored by


PMA Committee Members 2012 President

James HamiltonHead of UK Acquisitions & Estates

Costa Coffee – PropertyMob: 07557 114431


Financial Management

Richard WhiteThe Estates Consultancy CompanyMob: 07788 452972


Committee Members

Mark BowlesProperty Director

HMV Group plcDD: 020 7467 1126


Edward BuddenEstates Manager

Coral Racing Ltd DD: 020 3288 7163

Mob: 07841 566867


Nick KiddSenior Estates Manager

WilkinsonDD: 01909 505724

Mob: 07772 111287


Dan QuinnEstates Manager

Deichmann ShoesDD: 01858 436519


Graham SeatonProperty Director

Irisa Group LtdDD: 01582 399805

Mob: 07900 681816


Joseph SimonsSenior Estates Manager

Boots UKDD: 0115 968 7627


Alex StanhopeEstates Surveyor

Tel: 01527 517601


Faye StevensonMothercare Group plcTel: 01923 206264

Mob: 07436 032027


Ben WallNational Portfolio ManagerPoundland LtdDD: 0121 526 8742Mob: 07766 490472Email: [email protected]

Simon WillietsAsset ManagerStarbucks Coffee Co UK LtdDD: 020 8834 5325Mob: 07957 773051Email: [email protected]

Rob WoodEstates SurveyorHMV Group plc

DD: 0207 432 3034Mob: 07770 637580Email: [email protected]

Service Charge Representative

John GrayService Charge ConsultantJohn Gray Service Charges LtdDD: 01909 770416Mob: 07730 527861Email: [email protected]

This group is made up of all the

major multiples represented at the

PMA and includes many of the

consultants representing those who

do not employ a specialist direct.

An on-going issue is the reporting

of marketing analysis by Agents and

Landlords of exactly what they are

doing to ensure the monies invested in

Marketing are actually adding sufficient

value. I continually advise agents and

landlords that the issue continues but am

told “nobody else is raising it as an issue” –

the best part of £3m has been

cut off Marketing budgets in the last 2

years because of this initiative and we do need

to keep the pressure on or these costs will

creep back!

We continue to address topical issues such as

the RICS Code of Practice, Benchmarking etc and

our audit programme, the PMA QA Mark continues

to be of interest to Landlords and Agents alike. This

has been developed to include review of actual costs

(but not individual lease compliance) as well as Code

Compliance as we believe this to be more relevant

to retailers focus on costs. Other issues discussed

at recent meeting include the potential impact

of Carbon Reduction Commitment upon Service

Charges, Green Leases, Anti Terrorism measures

and Insurance commissions taken by landlords

when placing with cover recovered through the

service charge.

These pressures on costs are also overlain with the

undeniable fact that the stock of building we all

trade form is getting older, and as such needs more

tlc and MONEY spending on them so we must

ensure that the communication lines are open and

we have the discussions with Landlords and Agents

BEFORE the money is spent so we can perhaps

influence if it is all necessary ‘right now’ or at all!

The Landlord & Tenant forum is set for 26th

September this year after missing last year and is

where landlord and retail representatives meet to

discuss topical subjects without specific axes to

grind continues to provide valuable networking

and communication opportunities and to help

build Landlord relationships. Improving on

communications with landlords and their agents

also continues to be at the forefront of our activities

while keeping a controlling finger on the pulse of

the major overheads of retail property occupancy.

Individual meetings with the major agents are under

way to ensure their compliance with the spirit of The

Code of Practice.

John Gray

John Gray Service Charges Ltd

Service charge committee update

We currently have 104 companies listed as PMA Members. Since July 2011 we have new

members, namely Bestseller Wholesale UK Ltd, Foot Locker Europe JD Sports Fashion plc,

Steinhoff UK Group Property, Super Group plc, The Edinburgh Woollen Mill, The Money

Shop and Waterstones.


Tell us your views of the pma and the issues that matter for the retail property industry:

Q1: Is the work of the PMA relevant to you and your business: Currently relevant / active Could be / need more information No

Q2: What is the single most important property issue affecting your business: Rental liability Lease breaks / fl exibility Service charge / running costs Business rates costs Decline of high street & vacancy rates Competition from Internet

Q3: How does your view of the health of the retail property sector compare to 12 months ago: Improving Worsened Static / No improvement

Q4: What one thing should the PMA focus their efforts and resources for retailers?

Q5: Would you like to see more or less events and if so what?

Your name & organisation

Please send all responses to :

The Property Managers Association, Louise Oliver,

The Dolls House, Audley End Business Centre,

Wendens Ambo, Essex, CB114JL

Tel: 01799 544904

Fax: 01799 542991


A short Questionnaire

PMA Events2012Cocktail Party and Fundraising Event

Date: Wednesday 3rd October

Venue: Grace Milk Bar, 42-44 Great

Windmill Street, London W1

Time: 6.30pm onwards

Host: Joint event with SAS

Business Meeting and Buffet Lunch

Date: Wednesday 14th November

Venue: SNR Denton, One Fleet

Place, London EC4

Time: 12.30pm – 3.30pm

Host: SNR Denton

Christmas Lunch and Awards Presentations

Date: Thursday 20th December

Venue: London Hilton Metropole

Time: 12.30pm onwards

Plus Guest Speaker

The PMA are always endeavouring to ensure their efforts are directed towards facilitating their

member’s needs and make the work done relevant and focused.

Feedback is essential and we would be grateful if you could take a few minutes to answer the brief

questions below to assist in our research.

Thank you for completing our Questionnaire

Fundraising for 3 Little Miracles

To book a place click on our website or call Louise Oliver on 01799 544904



Some of our members

Protecting retailers occupancy interests through effective co–ordination


about the pma out-of-town landlords conference · essence, forewarned is forearmed! 1954 act...

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