Blackstone and Sovereign Land are exploring the possibility of sale of the St Enoch shopping centre in Glasgow.
The pair are reviewing their options and considering cashing in on the improvement in the regional shopping centre market since they made their investment in 2013.
The 850,000 sq ft Scottish mall could be valued at as much as £250m – a 6% yield. The valuation reflects a £60m premium on the £190m they paid.
No agents have been formally appointed but JLL, which worked with the duo on the acquisition of the shopping centre, is considered to be the most likely adviser.
St Enoch sits on Buchanan Street, Glasgow’s prime retail pitch. A 250,000 sq ft extension was competed in 2010 under Ivanhoe Cambridge’s ownership. It is anchored by Hamleys, H&M and Debenhams.
Blackstone’s and Sovereign Land’s purchase was funded with a £130m, five-year
loan from GE Capital, which is now owned by Wells Fargo. Wells, alongside Blackstone, bought the majority of GE Capital’s real estate assets globally in a $23bn (£14.8bn) deal in April.
St Enoch joins £3.2bn of shopping centres currently on the market, according to research from Cushman & Wakefield.
The biggest opportunities include the £300m Festival Place in Basingstoke, Hampshire; a £500m, 50% share in Merry Hill, Dudley; and the £310m Grand Central in Birmingham, which British Land, Grosvenor and Hammerson are currently battling it out to buy. Final bids are due at the end of this week.
amber.rolt@estatesgazette.com
