KKR has secured the prime retail asset from the £150m Cherry Portfolio being sold by Kames Capital.
The private equity firm, working in a joint venture with Quadrant Estates, has placed under offer the Sauchiehall shopping centre in Glasgow city centre for £46m, reflecting an 8% yield.
The 180,000 sq ft mall at 179 Sauchiehall Street was offered as part of a portfolio alongside the Banbury Cross retail park in Oxfordshire and the Arches retail park in Watford, Hertfordshire.
However, investor interest proved strongest for the individual assets.
Sauchiehall is anchored by Primark, TK Maxx and WH Smith and boasts a 400-space car park. Originally built in 1978, the centre underwent a £30m refurbishment in 2002.
It is on one of Glasgow’s busiest shopping streets and is connected to Buchanan Street, home to Land Securities’ 700,000 sq ft Buchanan Galleries.
Kames is now expected to sell the remaining two assets in the Cherry Portfolio separately.
The 168,454 sq ft Banbury Cross retail park includes 654 parking spaces and is anchored by Argos, Pets at Home and DFS and is two miles east of Banbury town centre on junction 11 of the M40.
The Arches retail park totals 122,978 sq ft and is anchored by B&Q, with other tenants including Furniture Village and Allied Carpets.
DTZ advised Kames on the sale; Montagu Evans acted for KKR and Quadrant Estates.
