Investorsâ appetite for Scottish retail property reached record levels in 2004 according to statistics just released by Cushman & Wakefield Healey & Baker (C&W/H&B) which show that over Â£1.85 billion was invested. This figure represents around double the amount invested during 2003.
Investment in shopping centres leapt 73% in 2004 with 15 centres bought for Â£815,835,000 up from Â£470,450,000 in 2003. High profile centres that changed hands included the St Enoch Centre in Glasgow which was sold for circa Â£270 million, Princes Mall in Edinburgh which achieved Â£37 million and the Sauchiehall Centre in Glasgow which went for Â£54 million. Property companies bought 53% of the shopping centres and UK funds took up a further 20%.
Retail parks also accounted for a large chunk of transactions with over 15 bought for a total of Â£632,830,000. These included The Fort in Glasgow, Kingsway East in Dundee and Hamilton Retail Park. Investment in Scottish High Street properties was also extremely strong with Â£404,830,000 of retail units snapped up by a mixture of property companies, funds and smaller private investors.
C&W/H&B advised on retail deals totaling over Â£425,000,000 during the year. John Hamilton, head of retail investment in Scotland, said: âThe market for retail property has been remarkably strong and 2004 will go down as a vintage year. The figures represent a huge vote of confidence in the Scottish retail sector with many major assets changing hands. I doubt whether we will see quite the same total for 2005, but I wonât be surprised if it is another very good year.'
Scottish Retail Park Purchases 2004 included:
Hamilton Retail Park; Anniesland, Glasgow; Queenâs Drive, Kilmarnock; Waterfront, Greenock; Great Western, Glasgow; The Fort, Glasgow; Kingsway East, Dundee; The Forge Phases 1 & 2, Glasgow; St Mungoâs, Cumbernauld; Telford, Inverness; Dumfries Retail Park; Saltire, Glenrothes; Airdrie Retail Park; Fife Central Retail Park, Kirkcaldy.
Scottish Shopping Centre Purchases 2004:
St. Enoch Centre, Glasgow; Sauchiehall Centre, Glasgow; Princes Mall, Edinburgh; The Savoy Centre, Glasgow; Newkirkgate Shopping Centre, Edinburgh; Kyle Shopping Centre & Arran Mall, Ayr; Loreburn Shopping Centre, Dumfries; Parkhead Forge, Glasgow; Campfield Square, Broughty Ferry; Calderwood Shopping Centre, East Kilbride; Barrhead Shopping Centre; Mercat Shopping Centre, Kirkcaldy; Oak Mall, Greenock; Shandwick Centre, Glasgow; Rivergate Centre, Irvine;
NB. The above figures do not include the setting up of the Scottish Retail Property Fund by British Land and Land Securities which combines a number of shopping centres.