Marks & Spencer is to buy the 18.21ha (45 acre) Gyle shopping centre from Edinburgh City Council for £122.2m. The purchase heralds an exception to the retail group’s normal property investment policy. It is acquiring the total site to secure control of its development. It will be the biggest occupier of leased floorspace. M&S Usually buys the freehold of its stores but it has never bought a shopping centre before.
Gyle is on the western fringe of the city. It has 27,870 sq m (300,000 sq ft) of retail space and has been open since 1993. M&S occupies 10,219 sq m (110,000 sq ft) and Safeway, a joint developer, 6,968 sq m (75,000 sq ft). There are about 74 other units.
Montague Evans, the joint selling agent described the initial yield of 4% on the price paid was “truly exceptional”. Hillier Parker was the other agent.
- Financial Times 10/01/97 page 15
- The Independent 10/01/97 page 4
- The Times 10/01/97 page 25, page 28 (Tempus)
- The Daily Telegraph 10/01/97 page 29
