South African billionaire Christo Wiese is backing a new retail joint venture targeting convenience food store development opportunities in the South of England.
The New Look and Virgin Active owner’s Moorgarth Group has agreed a jv with niche development company CCD Properties, founded by directors Claude Gubbay, Charles Miller and David Le Riche.
CCD, which specialises in retail, leisure and residential schemes, will oversee development for the venture, which will be funded by Moorgarth.
The jv will initially target schemes with a total gross development value of up to £100m, seeking individual sites valued at between £2m and £10m.
CCD’s Miller and Moorgarth Group managing director Gary Lewis will lead the new firm.
Miller said: “There is a perfect storm in the South. A change in customer habits means that there will be continued growth opportunities in the convenience food store sector as well as demand for new residential stock.”
The jv is already in talks to purchase up to five sites. The acquisitions are expected to complete by the end of the year.
It is typically targeting sites of between 1.5 and 8 acres that have the potential for as much as 12,000 sq ft of retail space and parking for up to 50 cars.
While some of the major supermarkets have slowed or halted convenience store expansion, most of the rapidly growing discount supermarkets have yet to establish convenience formats.
Moorgarth chief executive Tim Vaughan said: “There is an excellent synergy between the two businesses and the joint venture is a significant step forward for Moorgarth’s expansion in the South East.”
Moorgarth has been an active investor in the UK regions, buying the Rutherglen shopping centre in Glasgow and the Market Place mall in Bolton, Lancashire, in 2012.
Wiese, the company’s major shareholder, is the chairman and largest single shareholder of Africa’s biggest retailer, budget supermarket chain Shoprite.
