International property investors are still choosing to make debut London purchases despite political uncertainty, it emerged on Wednesday as a Kuwaiti firm spent £39 million in the City. Soor Capital said it has agreed its first UK deal with the acquisition of office building 23-26 Austin Friars. Abdulaziz Alduweesh, a partner at the firm, said the company is attracted to long-term income and “strong property fundamentals”. The 55,850 square feet block, which was bought from a private client of agent JLL, is fully-let to Avanta Serviced Office Group, part of IWG. It is a short walk from Liverpool Street station. The deal comes despite wider jitters in the commercial property market about rental growth prospects and tenant demand after Britain leaves the EU.
Warring Tories were labelled “beyond parody” by business leaders on Wednesday as Theresa May faced a vote of no confidence in her leadership. The attempt by Conservative Brexiteer hardliners to oust the PM with the country just 15 weeks away from Brexit — and no deal in place — was greeted with scathing disbelief by a host of senior organisations and bosses. Bookmakers make her the favourite to win the vote tonight, which would secure her as leader of the party for another year. Nick Varney, chief executive of Madame Tussauds operator Merlin Entertainments, said: “The whole situation is moving beyond parody. Everybody just wants clarity and certainty. I don’t think our politicians are covering themselves in glory.” Michael Bruce, chief executive of online estate agents Purplebricks, said: “Ultimately the quicker they make the decision about who is leading the country, the better.” The British Chambers of Commerce’s director general Adam Marshall greeted the no-confidence vote with “utter dismay”, adding: “It is unacceptable that Westminster politicians have chosen to focus on themselves, rather than on the needs of the country… History will not be kind to those who prioritise political advantage over people’s livelihoods.”
Sainsbury’s heads into battle with watchdog over £15 billion Asda merger. Sainsbury (J) (SBRY) on Wednesday went to war with the competition watchdog over its investigation into the supermarket chain’s £15 billion merger with Asda. The grocer launched a legal challenge against the Competition and Markets Authority. It said the watchdog is not allowing it enough time to respond to some of the arguments raised against the deal by competitors, suppliers and trade bodies. The combined business between Britain’s second and third-biggest supermarkets will narrowly become a larger business than rival Tesco. The tie-up has been referred for an in-depth investigation, expected to be completed by the end of March. However, Sainsbury’s, led by Mike Coupe, said on Wednesday it felt the timetable “does not give… sufficient time to provide and consider all the evidence given the unprecedented scale and complexity of the case”.
Embattled Superdry hits back at co-founder Julian Dunkerton’s blast. Embattled Superdry (SDRY) on Wednesday retaliated after its angry co-founder Julian Dunkerton took a fresh swipe at the fashion retailer as it posted another profit alert. Dunkerton, who left the business in March, claims the business is neglecting online growth and has cut back dramatically on the number of products it sells, alienating shoppers. Chairman Peter Bamford said: “He has raised the same issues a number of times. There is nothing new here. The board considered his proposals in detail and has rejected them. Julian’s views have not evolved to keep up with innovation.” Bamford added: “Julian did sign off most of the Superdry products available today, and his departure has allowed the management team to commence a new programme and to move apace.”
Political turmoil sees Rolls-Royce keep Brexit stockpiling. Engine giant Rolls-Royce Holdings (RR.) is sticking with its Brexit stockpiling plan due to ongoing uncertainty in Westminster. The jumbo jet engine makers, based in Derby, is building up one month’s worth of inventory in warehouses near Derby as a “contingency measure” in case a hard Brexit disrupts supplies from Germany and Spain. As a precaution, Rolls has also shifted design approval for engines to Germany from the UK and is working with the European Aviation Safety Agency on the plan. The change is not likely to lead to job moves. “We have been liaising with all our suppliers and have reviewed our logistics options and have the required capacity available,” said the company.
Dixons Carphone shrugs off big loss as boss maps turnaround plans. Electricals retailer Dixons Carphone (DC.) on Wednesday revealed it has suffered a huge first-half loss, but new boss Alex Baldock remained bullish as he outlined his turnaround plans. Baldock, who joined in April, said the firm “is now on the path to sustainable success”. That’s despite the firm being hit by a number of one-off costs in the six months to October 27, some of which were linked to a cyber-attack on the data of millions of customers. The chain — formed out of the merger of Dixons and Carphone Warehouse in 2014 — has also been grappling with Brits upgrading their mobile phones less frequently. Comparable revenues rose 2% compared with the year before but the business swung to a total statutory loss of £440 million, as opposed to a profit of £54 million.
