Greggs as a Target Occupier: Evidence-Led Screening of Mixed-Use Property

DRAFT, pending explicit publication confirmation

Main points

Greggs is a target occupier with a published property requirement. Greggs is not a party to any deal discussed in this article.
Greggs has not expressed interest in any specific site or property named here. No site is Greggs-approved.
Every candidate listed is a Realty Packaging desk-review candidate only. Each remains subject to independent verification and Greggs’ own assessment.
Greggs’ UK-wide requirement identifies leasehold units from 900 sq ft. The London and South East requirement identifies leasehold units of 1,500 to 2,000 sq ft. These figures differ. The applicable figure depends on region and format.
The published requirements cover high streets, shopping centres, travel hubs, retail parks, roadside locations, industrial lots, business parks, supermarkets and suburban parades. Greggs is also expanding drive-through and smaller formats.
No candidate has verified particulars. No meaningful fit assessment can be completed against the published requirements.
Commercial shops and residential uppers must be assessed separately. They should not be blended into a single yield calculation.
A 7.5% gross yield and the 12% return threshold cannot be tested until price and evidenced rent are available.
Tenant rent payments are not guaranteed. Capital is at risk.

What Greggs has published

The Completely Retail report published in April 2026 states that Greggs released a new property requirements list while continuing its nationwide expansion. It reports that Greggs acquired 100 new shop locations in 2025.

The same report states that Greggs is seeking:

Leasehold units with a minimum area of 900 sq ft across the UK.
In-town units on high streets, in shopping centres and within travel hubs.
Out-of-town units in retail parks, roadside and industrial locations, and business parks.
Supermarket locations and suburban parades.
Further drive-through locations.
Smaller units for its “bitesize Greggs” format where space is limited.

Completely Retail also reports that Greggs operates around 2,700 locations and has previously indicated potential for more than 3,000 UK stores in the long term.

The Greggs London and South East requirement on The Requirement List states a different regional requirement:

Requirement	Published position
UK-wide minimum	900 sq ft minimum, leasehold
London and South East	1,500 to 2,000 sq ft, leasehold

These figures must not be merged. They differ, and the applicable figure depends on region and format.

The Greggs H1 2026 interim results, released through RNS on 29 July 2026 provide further context:

Total sales for the 26 weeks ended 27 June 2026 were £1,101.5 million, up 7.2%.
Company-managed shop like-for-like sales increased by 2.1%.
Greggs opened 34 net new shops during the half and had 2,773 shops trading at 27 June 2026.
Of those 2,773 shops, 627 were franchised.
Greggs expects around 100 to 110 net new shop openings in 2026, plus around ten “Greggs Express” convenience retailing trials.
Its medium-term expectation is at least 100 net new shop openings per annum.
Greggs identifies a clear opportunity for at least 3,500 UK shops over the longer term.
More than half of new openings were in locations such as petrol forecourts, supermarkets, retail parks, hospitals and university campuses.
Greggs relocated Birmingham New Street to a larger unit and was working towards openings at Liverpool Lime Street, London Euston and London Victoria railway stations in the second half of 2026.
More than half of company-managed shops accept delivery orders through Just Eat and Uber Eats. Three-quarters accept orders through delivery partners.
Home delivery represented 6.9% of the sales mix.
Four “bitesize Greggs” shops had opened, with four more expected in the second half.
“Greggs Express” was being trialled with a franchise partner in convenience retailing sites. Three installations were in trial.
Greggs’ share of food-to-go visits increased by 0.3 percentage points to 8.7% for the 12 months to June 2026, based on Circana CREST data.

The interim results describe Greggs as “a trusted brand offering a strong covenant to landlords and franchise partners”. This is Greggs’ own characterisation. It is not an independent assessment and is not a guarantee for any landlord in any specific transaction.

The same results record a net impairment charge of £3.4 million, a total impairment provision of £15.8 million across 137 shops, and 31 shop closures in the half, including relocations. This shows that Greggs manages its estate actively and may close or relocate units. A covenant is not a permanent guarantee on any single shop.

The effective corporation tax rate was 26.0%. 2026 capital expenditure guidance was reduced from £200 million to around £180 million. The results are Greggs’ published, unaudited results. They relate to Greggs plc as a whole, not to any individual property or lease.

Published requirements, inferences and assumptions

1. Published requirements

The published requirements are those stated in the three linked sources above:

Leasehold occupation.
A UK-wide minimum size of 900 sq ft.
A London and South East requirement of 1,500 to 2,000 sq ft.
High street, shopping centre and travel hub locations.
Retail park, roadside, industrial lot and business park locations.
Supermarket and suburban parade locations.
Drive-through expansion.
Smaller “bitesize Greggs” formats.
Continued estate expansion, including company-managed and franchised formats.

These are published requirements or published business information. They are not evidence that any particular property is suitable.

2. Reasonable inferences

The following are reasonable operational inferences, not published Greggs requirements:

A food-to-go operator will usually need an appropriate power supply.
A food-to-go operator will usually need a workable ventilation and servicing arrangement.
Delivery access, waste collection and storage are likely to affect operational viability.
A unit’s configuration may affect the cost and practicality of fitting out a food-to-go operation.

These points require site-specific review. They must not be presented as requirements published by Greggs.

3. Realty Packaging assumptions

For internal screening, Realty Packaging may review:

The extraction and ventilation route and discharge point.
Shopfront width, frontage quality and visibility.
Parking, including whether parking is needed at all for an in-line unit.
Servicing, loading and delivery access.
Power supply and gas availability.
Internal layout, counter position and back-of-house arrangement.
Storage, cold storage and waste arrangements.
Grease and odour management.

These are Realty Packaging assumptions for due-diligence screening. They are not universal published requirements and are not confirmed Greggs requirements. None should be presented as a Greggs requirement.

Class E and planning context

Food-to-go uses generally fall within Class E of the Town and Country Planning (Use Classes) Order 1987, as amended. The former A3 and A5 use classes were consolidated into Class E, although hot food takeaway uses can attract specific restrictions, conditions or local policy requirements.

For a Greggs-format screening case, Realty Packaging would review:

The lawful existing use.
Whether the proposed food-to-go or hot food use is permitted.
Any restrictions on hot food or takeaway activity.
Opening-hours conditions.
Local policy on hot food uses.
Extraction and odour requirements.
Signage and advertisement consent.
Any Article 4 Direction.

This is planning context for Realty Packaging’s review. It is not a Greggs requirement. Permitted use must be confirmed by the local planning authority. It cannot be assumed from a marketing description. Planning potential is not planning consent.

Candidate properties

Seven candidates have been proposed internally. No direct listing URLs were supplied, and no candidate could be independently verified or accessed during research.

Greggs is a target occupier with a published property requirement. Greggs is not a party to any deal discussed in this article. Greggs has not expressed interest in any candidate named below. No candidate is Greggs-approved. Each is an unverified Realty Packaging desk-review candidate only and must not be treated as available, suitable or endorsed by Greggs.

Without verified particulars, no meaningful fit assessment can be completed against the published requirements. This is a deliberate limit rather than an oversight.

Candidate	Verified particulars	Published link	Fit assessment status
259 Kingsland Road	None supplied	None supplied	Cannot be assessed without particulars
Holloway Road N7	None supplied	None supplied	Cannot be assessed without particulars
720b-722b Old Kent Road	None supplied	None supplied	Cannot be assessed without particulars
High Street West Wickham	Not verified	None supplied	Cannot be assessed without particulars
Roman Road E3	None supplied	None supplied	Cannot be assessed without particulars
Unit 3 Warehaus E8	None supplied	None supplied	Cannot be assessed without particulars
Unit 1 Empress Works E2	None supplied	None supplied	Cannot be assessed without particulars

High Street West Wickham is in the London Borough of Bromley and is close to Realty Packaging’s operating area. This is geographic context only. It is not a suitability assessment.

Correspondence status

No reply from the Greggs property team has been located in relation to any candidate in this article.

A prior response received was a customer-care redirection rather than a property decision. It is not a property decision, an indication of interest or Greggs approval.

Realty Packaging has not made an approach to Greggs for any candidate in this article. No engagement by Greggs should be inferred.

Financial assumptions and screening thresholds

No purchase price, rent or cost has been verified for any candidate. Realty Packaging therefore does not publish a property-level price, deposit or return on investment for any candidate.

The following is a generic illustration only. It is not a model of any candidate and cannot establish viability.

Item	Illustrative amount
Acquisition price	£500,000
Deposit at 25%	£125,000
Mortgage at 75%	£375,000
Interest-only finance at 6%	£22,500 per annum
Monthly interest-only cost	£1,875
Non-residential SDLT: 0% on first £150,000	£0
Non-residential SDLT: 2% on next £100,000	£2,000
Non-residential SDLT: 5% on remaining £250,000	£12,500
Total illustrative SDLT	£14,500
Illustrative legal and survey allowance	£4,000
Total illustrative capital employed	£143,500

The SDLT calculation is illustrative and subject to tax advice. It does not include all possible acquisition, finance, refurbishment or operating costs.

Realty Packaging’s screening thresholds are:

A 7.5% gross yield.
A 12% return at 75% loan-to-value using 6% interest-only finance.

At this leverage, a 7.5% gross yield produces approximately 12% on the deposit before costs. The arithmetic is:

Four times the gross yield less 18% = 12%

This is a screening calculation, not a forecast return. No candidate can be screened against either threshold until an evidenced rent and verified price are available. A gross yield cannot be calculated from an assumed rent.

Company structure, capital allowances and tax strategy

Investors should consider ownership structure before committing to a mixed-use acquisition.

A limited company or special purpose vehicle may assist with administration, ownership separation and portfolio planning. It can also create additional accounting, financing and tax requirements. Lenders may require personal guarantees or other security.

An LLP may provide a different ownership and governance structure. Its tax treatment, profit allocation and borrowing position depend on the members and the arrangements in place. An LLP is not automatically preferable to a limited company.

Potential tax areas for professional review include:

Capital allowances on qualifying plant and machinery and integral features.
The treatment of fixtures acquired with a commercial property.
Structures and Buildings Allowance where qualifying works and conditions apply.
Interest, finance costs and ownership expenses.
SDLT and any VAT election or treatment.
Corporation tax, income tax and tax on distributions.
Future disposals, refinancing and changes in ownership.

Tax-advantaged property investment strategies may include correctly identifying qualifying capital allowances, selecting an appropriate ownership structure and planning refurbishment expenditure. Eligibility is not automatic. Investors should obtain independent tax advice before relying on any tax treatment. Realty Packaging does not provide tax advice.

Four Pillars for a Greggs-format screening case

1. Lease structures

Leasehold is Greggs’ published preference. Review should confirm:

Term, rent, rent reviews, breaks and incentives.
Security of tenure under the Landlord and Tenant Act 1954.
Repairing obligations.
Whether the upper part is separately let.
Any guarantee, parent-company support or franchise structure.
Whether the occupier is Greggs plc or a franchisee.

The distinction between a Greggs plc covenant and a franchisee covenant is material. Greggs reported 627 franchised shops at 27 June 2026. A franchisee covenant is not the same as a Greggs plc covenant.

2. Planning

Confirm:

Lawful use class.
Whether hot food or takeaway use is permitted or restricted.
Conditions and hours limits.
Local policy on hot food uses.
Extraction and odour conditions.
Signage and advertisement consent.
Any Article 4 Direction.

Planning potential is not consent.

3. Building condition

Review:

Roof and structure.
Damp and drainage.
Party walls.
Floor loading.
Ceiling height.
Existing services.
The practicality of a food-to-go fit-out where the building has not previously been used for food.

4. Operational compliance

Review the commercial unit and residential upper part separately for:

EPC and MEES position.
Fire safety and means of escape from upper floors passing through a commercial unit.
Electrical and gas safety.
Ventilation and odour.
Waste and grease arrangements.
Accessibility.
Insurance.
Business rates.
Council tax.
Licensing.

For privately rented homes, Realty Packaging uses the EPC C-equivalent standard as the energy-efficiency target. The commercial and residential elements must be assessed separately.

Any residential upper part must also be reviewed against the Renters’ Rights Act 2025 and the law in force at the relevant date. No new Section 21 notices should be referenced for dates from 1 May 2026.

Value-add, GDV and residual land value

Potential value-add routes may include:

Lease strengthening by securing a strong branded covenant on evidenced terms, rather than assuming one.
Rent review potential, while recognising that a rent review does not guarantee an increase.
Upper-floor residential value assessed separately from the commercial element.
Lawful use confirmation and any conversion or reconfiguration.
Refurbishment costed against contractor and quantity surveyor plans.
EPC improvements separately costed and funded for the commercial and residential elements.
Refinancing after stabilisation, subject to lender valuation, interest cover and the lender’s view of the covenant.

Commercial shops and residential uppers must not be blended into one yield calculation.

On the generic £500,000 illustration only:

A 7.5% yield implies approximately £666,667.
An 8% yield implies approximately £625,000.

These are hypothetical capitalisation calculations, not valuations.

Gross Development Value and residual land value are hypothetical unless supported by planning, design, cost plans, finance terms and comparable evidence. GDV is not market value, investment value or loan value. No uplift is guaranteed.

Compliance and trust

Realty Packaging reviews opportunities through the Four Pillars: lease structures, planning, building condition and operational compliance.

This article is general information only. It is not financial, tax, legal, valuation, building-survey or property-management advice. It makes no offer, valuation, recommendation or invitation.

Greggs is a target occupier with a published property requirement. Greggs is not a party to any deal discussed. Greggs has not expressed interest in any site or property named in this article. No candidate is Greggs-approved. No property is offered by Realty Packaging.

Availability, price, rent, tenure, planning, condition and suitability are unverified. Every candidate is a Realty Packaging desk-review candidate only, subject to independent verification and Greggs’ own assessment.

Tenant rent payments are not guaranteed. Capital is at risk. Realty Packaging does not claim FCA authorisation, professional registration, ombudsman membership or accreditation.

Sources and Realty Packaging pages

General information disclaimer

This article is provided by Realty Packaging for general information and discussion only. It is not financial, investment, tax, legal, planning, valuation, building-survey, insurance, lending or property-management advice. It is not a personal recommendation, offer, invitation or solicitation to buy, sell, lease, finance or invest in any property or company.

Any figures, calculations, assumptions, yields, returns, prices, rents, costs, capitalisation examples, GDV, residual land value, tax treatment, finance terms and value-add scenarios are illustrative unless expressly supported by verified evidence. They must not be relied on as forecasts or guarantees. Availability, suitability, planning status, condition, tenure, rent, tenant rent payments, covenant strength, finance availability and investment performance are not guaranteed.

Property investment involves risk. Capital is at risk and investors may lose some or all of their investment. Borrowing can increase losses as well as returns. Interest rates, tax rules, planning policy, operating costs, market conditions and tenant circumstances may change. Past performance and published company information do not guarantee future performance or the performance of any individual property.

Obtain independent advice from appropriately qualified financial, tax, legal, planning, building-survey and lending professionals before making a decision. Realty Packaging does not accept responsibility for decisions made solely on the basis of this article.

For enquiries, contact support@realtypackaging.co.uk, Rachel on +44 20 4513 2218, or visit www.realtypackaging.co.uk.