Case Study - Kiddicare

In late 2011, Gilbert Bath were instructed by Wm Morrison Supermarkets plc to undertake a property search in 6 major cities  across the UK for their new Kiddicare store trading  format. In October 2011, we submitted a report on suitable opportunities, including advice on the forthcoming disposal of  the Best Buy property portfolio. Subsequent instructions were received to proceed on the Best Buy portfolio and we provided advice and recommendations on the bid structure for the portfolio. We succeeded in securing terms on 10 properties (Cribbs Causeway, Enfield, Hayes, Croydon, West Thurrock, Southampton, Merry Hill, Rotherham, Nottingham and Aintree). The lease assignments were completed between April 2012 and April 2013, after successfully securing landlords’ consent and relevant planning variations.

The purchase contract comprised 3 phases: phase 1 of 4 properties were to be assigned conditional solely on landlord’s consent; phase 2 of 2 properties conditional also on planning for change of user and phase 3 of the final 4 comprising an effective option agreement, subject to relevant consents and long-stop date. Capital receipts were allocated on an individual property basis with separate incentive payments made to Kiddicare on completion of all phase 1 and 2 properties. We negotiated on behalf of Kiddicare a total capital receipt  significantly ahead of the client’s expectations allowing a phased roll-out of 10 strategically located retail warehouses comprising some 350,000 sq ft with a combined rent role of £9.5m pa

We believe this deal to be one of the biggest single portfolio acquisition deals in recent years.