Revo, the organisation that represents the UK’s £360 billion retail property sector, has launched the latest edition of its classification model for UK retail assets following an industry-wide consultation.
The new classification methodology, below, is aimed at investors, owners and valuers, and creates a consistent definition of UK retail assets according to their purpose, function, size, occupier mix and catchment.
The announcement came on the eve of the annual conference, this year in Manchester, and after extensive consultation with the industry.
Mark Williams, president for Revo said: “Ahead of Revo Manchester this week we are launching the latest edition of our Classification of Retail Assets model. This work is long overdue, and is essential in encouraging a proper understanding of the diversity, purpose and function of retail assets particularly as these assets evolve to be increasingly multi-use.
“We believe a move away from the outdated ‘primary, secondary, tertiary’ terminology will encourage more balanced commentary on the retail sector in the UK, encouraging a more positive narrative for the benefit of investors across the UK market. We are encouraging further feedback on this classification model and our aim is, subject to further input, that a new methodology is adopted across the industry from 2019.”
Tim Leckie, executive director, equity research, listed property at JP Morgan, added: “We have been frustrated by the lack of differentiation between retail sub-sectors, and this new classification model is a step in the right direction in encouraging a better analysis of which retail property assets are performing, and which are not.”
RPA Perspective Revo will launch the latest edition of the classification standard at Revo Manchester 2018, its annual conference which takes place between 18 – 20 September.
The proposed structure is as follows:
Destination and lifestyle: Regional scheme Sub-regional scheme
Community scheme: Local scheme Neighbourhood scheme
Specialised purpose: Outlet scheme Leisure scheme Transport hub
A number of major companies have also thrown their weight behind the classifications, which are designed to make the type of schemes more self-explanatory and to help investors value projects.
Charlie Barke, head of shopping centre and high street at Knight Frank, added: “The rapid evolution of the retail market forces greater than ever scrutiny of our retail assets. This improvement in terminology should help investors, analysts, valuers and all assessors of our market to better understand the modern function of our centres.”
Tim Vallance, head of UK retail & leisure, JLL said: “We’re supportive of this project. Currently similar classifications exist for European, Asian and North American markets. Having something focussed on the UK would be a welcome edition, and could add value to advisors for market overviews, analysis, international comparison studies and other purposes.”
