A Henry Stewart 2006 Market Briefing

Licensed and Leisure Property

Chair
Trevor Watson, Head of Special Projects, Davis Coffer Lyons

Speakers
Philippe Baretaud, Development Director, Accor UK & Ireland
Barry Gillham, Chairman, Fleurets
Steven Hill, Chief Executive, Wagamama Limited
Stephen Leafe, Director of Property – Acquisitions, Mitchells & Butlers
John Rushby, Director, Valuations, Licensed & Leisure, Colliers CRE & Chairman, Leisure Property Forum
Robert Seabrook, Executive Vice President, Jones Lang LaSalle Hotels
Steve Meynell, Relationship Director, The Royal Bank of Scotland

 

Programme

Pub property
• Consequences for values of changes in the licensing laws and planning regulations
• Implications of smoking regulations
• The re-emergence of vertical ownership in the drinks market
• Lessons from the market with the latest deals analysed to illustrate emerging trends
• Trends in market demand

Restaurant property
• Impact of licensing and planning regulations on rental and capital values
• Current trends in market demand and activity
• Sought after locations and poor locations
• High street versus shopping centre schemes
• Future market trends

Hotel market
• Analysis of latest deals
• Trends
• The active investors in the hotel market – the kind of deals they are looking for
• Trend in market demand

View from Hotel Operator:
• Objectives and strategy
• Analysis of a sale and lease back transaction to illustrate:
- innovative characteristics
- what it brings to the operator; what it brings to the investor
- conditions of success
• Approach to new developments
- a property strategy adapted to the hotel segments: upscale; midscale; budget
- here in UK
• Comment and analysis on recent deals

What is happening in the bingo, bowling, health and fitness and nightclub markets
The speaker will cover who the key operators are and who are the new entrants, who makes the market (private operators, corporates, venture capitalists and all the others), what customers want and where the new opportunities are to be found.
• What is the investor appetite for clubs: key deals, yield trends, where the money is coming from
• General rental trends and key local markets
• What are the challenges facing the markets: licensing reform, abolition of monthly contracts for health and fitness, impact of gaming reforms and fixed odds betting at bingo
• Where market growth is likely to be, who is expanding and who is exiting

Funding sources and terms
• What's happening?
• Deal structures
• What will lenders fund?
• Terms and conditions
• Consequences of increased interest being shown by private equity funds

Trends in lease terms and lease negotiations
• Are terms agreed in the last century acceptable today? If not, how do they impinge upon rent reviews?
• Do tenants want shorter or longer leases?
• How to treat fitting out costs?
• Who is the hypothetical tenant? (A1/A3/A4)

What to do about over-rented property
• The creation of over-rented leases - have naive investors been ‘conned’?
• How do valuers treat figures and do calculations?
• How do landlords protect returns: by allowing sub-division or by accepting non-institutional covenants?
• Remedies:
- allow a different user without penalty
- allow sub-division of larger units
- allow sub-letting to poorer covenants
• Where do the banks stand on the issues?