Retail woes extending beyond the property sector and into financial markets
Some commentators had anticipated that persisting retail sector challenges might disrupt more than the make-up of the high street or commercial property negotiations between landlords and tenants.
Some commentators had anticipated that persisting retail sector challenges might disrupt more than the make-up of the high street or commercial property negotiations between landlords and tenants.
The suspension of the M&G property fund on Wednesday provided the clearest sign since 2016 of property market concerns affecting the wider financial markets. The £2.5 billion fund has already shrunk approximately £1 billion this year and the suspension comes following difficulties in selling properties quickly enough to meet investors’ demands to access their money. The fund blames Brexit uncertainty and refers to decreasing performance in the retail sector, stating that “the value of certain retail properties has declined as retailers continue to adjust their business models in response to changing shopping habits and rising costs.”
This has prompted questions from Gina Miller regarding the FCA’s role in protecting investors following the recent collapse of Woodford Investment Management; this is a topic in itself. Commentators and fund managers are also quick to emphasise that most investors will understand that property is more illiquid than most investments, and numerous funds are more varied; the M&G fund is particularly exposed with retail property comprising up to 36.4% of its assets.
This development does, however, provide a useful reminder of the factors which affect the bottom line of each party to a property negotiation. It’s not just about landlords and tenants, but also investors and consumers.
Contact
Mark Hickson
Head of Business Development
onlineteaminbox@brownejacobson.com
+44 (0)370 270 6000
Related expertise
You may be interested in...
Legal Update
Understanding the ICO's new fining guidance
Legal Update
Unravelling the challenges and opportunities in UK sports governance
Legal Update
ASA ruling on Calvin Klein FKA Twigs advertisement
Press Release
Browne Jacobson successful for National Lottery in Court of Appeal
Opinion
Caregivers at work: Navigating new carer's leave regulations
Opinion
EHRC publishes new guidance on menopause and the workplace
Opinion
BBC personality wins appeal on IR35 status
Legal Update
Covid BI litigation (Autumn 2023): Insurance coverage disputes update
Legal Update
COP28 - how to limit and prepare for future climate change
Press Release
Browne Jacobson advise Maven Equity Finance on investment in Traverse Associates
Press Release
Three strong restructuring and insolvency team join Browne Jacobson
Podcast
The real estate podcast: How AI and tech is changing real estate
Legal Update
How to negotiate better ‘green’ provisions in your leases
Opinion
The Metaverse's influence on real estate: Implications for commercial retail clients and law firms
Guide
How to manage retail sector supply contracts and avoid disputes
Legal Update
Utilising prime retail sites to improve the health of our nation
Legal Update
A new era of opportunity for high street regeneration?
Opinion
Practical points from High Court ruling that Tesco has infringed Lidl’s IP rights in its famous yellow circle logo
Legal Update
Pitfalls for retailers to avoid when offering access to ‘buy now, pay later’ products
Press Release
Browne Jacobson’s Manchester dealmakers advise Spatial Global on its acquisition of Heathrow based freight specialist Hollyport Logistics
Opinion
Supreme court rules on retail tenant's service charge bill
Published Article - Consumer Duty
Consumer duty part 3 - 'The drill-down' into the 'cross-cutting' rules
On-Demand
The UK's green agenda - the outcomes of COP27 and actions since COP26
Press Release
Browne Jacobson’s retail lawyers advise Wilko on its strategic £48m sale and leaseback of Nottinghamshire distribution centre to DHL
Press Release
Suzanne Harlow joins Browne Jacobson as Non-Executive Director
Law firm Browne Jacobson is pleased to announce that Suzanne Harlow has been appointed Non-Executive Director of its Retail, Consumer & Logistics sector.
Legal Update
Fashion retailers: Is this the end for free returns?
Published Article
AI generated designs on retail products
Every AI will have its own terms of use. DALL·E 2’s Terms of Use dated 3 November 2022 specify that as between a user and Open AI, a user owns their prompts and uploads. Open AI also assigns to the user all rights in any images generated by DALL·E 2 for that user (subject to the user complying with those Terms of Use, and to a licence to use inputs and output to develop and improve the services).
Published Article - Consumer Duty
Consumer duty part 2 - 'The drill-down' into the 'cross-cutting' rules
Published Article
Luxury brands and sustainability: The challenges and solutions
Legal Update
The Retained EU Law
Created at the end of the Brexit transition period, Retained EU Law is a category of domestic law that consists of EU-derived legislation retained in our domestic legal framework by the European Union (Withdrawal) Act 2018. This was never intended to be a permanent arrangement as parliament promised to deal with retained EU law through the Retained EU Law (Revocation and Reform) Bill (the “Bill”).
Opinion
Rent arrears post-Covid: What are the landlord’s options?
Since the beginning of the pandemic, landlords and tenants have experienced significant limitations in the way rent arrears could be pursued. We first saw the moratorium on the recovery of Covid related arrears, and more recently we’ve experienced the implementation of the Covid arrears arbitration scheme.
Published Article - Consumer Duty
Consumer duty part 1 - 'The drill-down' into the 'cross-cutting' rules
Press Release
Browne Jacobson appoints its first Non-Executive to Chair to support its corporate sector strategy board
Press Release - Firm news
Browne Jacobson strengthens its UK&I commercial practice with hire of new retail & consumer specialist partner
Browne Jacobson has bolstered its commercial practice in the UK with the appointment of commercial contracts and international trade specialist, Emma Roake, into its City-based London team.
Opinion
Cameras in convenience stores: a potential hornet’s nest..?
Published Article
Sole director decisions: Another perspective
Legal Update
Merger and Acquisition trends in the specialist lending market
Published Article
RAAC planks and its impact on local authorities
Recent reports of flat roofs constructed using RAAC planks collapsing without warning prompted the SCOSS alert.
Opinion
Court of Appeal overturns “fire and re-hire” injunction
The Court of Appeal overturned the “fire and re-hire” injunction, finding that there was nothing in the express contractual provisions preventing Tesco from giving the notice to terminate employment in the usual way.
