Land Securities (LandSec) and British Land have bought two more shopping centres via their joint venture, the Scottish Retail Property Limited Partnership, for more than £60m.
The pair has bought the 87,000 sq ft Princes Square and 45,843 sq ft Southgate developments.
The two schemes form the East Kilbride Shopping Centre and the purchase creates one of the largest shopping centres in the UK, and the largest covered mall in Scotland, under one ownership.
Princes Square, which comprises 34 stores with New Look and Sport Soccer as anchors, was bought from Prudential for £37.25m, reflecting a 6% yield.
Southgate, with 14 stores, was bought from Scottish Mutual Assurance for £24.5m, reflecting a 5.18% yield.
The Partnership already owns the remainder of the 1.2m sq ft East Kilbride Shopping Centre.
Southgate and Princes Square generate a combined annual income of about £3.7m.
LandSec’s portfolio manager John Wilson said: “First and foremost, these acquisitions show long-term commitment to developing our already successful retail pitch in East Kilbride. We are now better placed to create synergy between the malls, adding to a more enjoyable shopping environment.”
British Land’s portfolio manager Merrick Marshall said: “It made good strategic sense to acquire the retail assets in East Kilbride adjoining existing Partnership holdings.
“Through one ownership we can take this once-in-a-generation opportunity to unlock the real, sustainable potential of East Kilbride as the dominant retail centre for south Glasgow.”
British Land and LandSec set up the joint venture in March last year.
Donaldsons acted for the Partnership, Prudential Property Investment Managers represented Prudential, and Abbey National Asset Managers and Montagu Evans represented Scottish Mutual Assurance.
References: EGi News 11/01/05
