Intu has outlined aims to sell King George V docks, a 30.96 acre site in Glasgow, and two adjacent plots of land back to Clydeport Operations, a Peel Group subsidiary.
The proposed deal, which would see the land sold for a cash price of £6.125m, requires shareholder approval since John Whittaker, deputy chairman and non-executive director of intu, is also the chairman of the Peel Group, intu’s largest stakeholder.
The King George V docks sit next to intu’s Braehead shopping centre in Glasgow. Intu bought the freehold in 2012 from Clydeport Properties for a cash sum of £4.67m.
It was let to Clydeport, a member of the Peel Ports Group, in 2015, with terms running to 29 December 2020 for an annual rent of £550,000.
During the letting, the landlord planned to redevelop the site. However, the Clyde Plan and Glasgow City Plan implemented in 2017 sought to protect its use as a dock, reducing the likelihood of a potential project.
Intu said the book value of these sites is currently £5.16m. The deal forms part of the REIT’s strategy to reduce its loan-to-value, as well as focus on its shopping centre assets.
Intu will hold a general meeting on the proposed sale on 31 May.
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