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Nor was this simply a case of the
‘grey pound’.The government now
actively encourages schools to teach
children how to plant and grow their
own fruit and vegetables. On cue,
Dobbies has introduced Dobbies Little
Seedlings, gardening clubs for 4 to
10 year-olds that meet once a month
to learn about plants, wildlife and
the environment.
‘Taking this a step further, garden
centres could have permanent play
stations where children could be
encouraged to plant seeds, think of which
plants are best for attracting bees, or learn
about designing a garden,’ says Gadsden.
But he believes they are already on the
right commercial track.Orchard Street
INSIGHTS
38
|
THE INVESTOR
Orchard Street believes that today’s garden centres, unlike the dowdy nurseries
of the past, should appeal to commercial property investors
THE INVESTOR CENTRE
N
ot so long ago, nursery
businesses were a quiet
a air – often little more
than ageing greenhouses
with low turnovers.
But the in uence of US retailers has
helped transform today’s garden centres
into something quite di erent – more
supermarket than sideline.Among the
innovations that brought transformation
was a simple one: plant pots small
enough to hold in your hand.
Yet once more gardening enthusiasts
started arriving, a new problem became
apparent – they weren’t turning up in
the autumn and winter.
‘Garden centres latched onto the idea
of being a pleasant leisure destination for
their core shoppers – thus the idea of
departments to browse, concessions
from other retailers and restaurants and
co ee shops was created,’ says Philip
Gadsden,managing partner of Orchard
Street Investment Management, which
oversees the St. James’s Place Property
fund.‘Having more attractions allowed
visitors to stay at the garden centres for
longer. Coupled with substantial onsite
parking facilities, the development led to
footfall becoming less seasonal.’
A study published last year found that
gardening was the nation’s fourth
most-popular pursuit – beaten only by
reading, cooking and running
1
.
Inevitably, the fact of an ageing
population also plays into the hands of
garden centres.
Roomfor growth
holds a portfolio of eight garden centres
in the St. James’s Place Property fund,
all run byWyevale.
‘The portfolio is valued in excess
of £90 million and has rent roll of over
£5 million per annum linked to in ation
on lease lengths of 25 years,’ he says.
‘The stable income is supported by 22
concessions that include Edinburgh
Woollen Mills,WH Smith, Pet’s Corner
and Lakeland, whose rental income has
increased by 3% in the past 12 months.
Given that more than 60% of British
adults visit a specialist garden centre every
year, revenues look set to increase further.’
Orchard Street Investment Management is
a fund manager for St.James’s Place
Shutterstock. Source: 1 axa.co.uk
GROWTH ASSETS Ga
rdening’s
popularity is burgeoning
more among younger
generations than of old