Clyde Shopping Center in Glasgow acquired in £69 million joint venture (UK)

Helical Bar plc, in joint venture with Prime Commercial Properties plc ("PCP"), has acquired the long leasehold interest in the Clyde Shopping Centre, Clydebank, Glasgow, for a cash consideration of approximately £69 million (€77.6 million) from the Co-operative Insurance Society Limited ("CIS").

Clyde Shopping Centre is the dominant retail location in Clydebank and for the north west quarter of Glasgow. The centre comprises in excess of 625,000 sq ft of net retail floor space with 121 shops, six anchor stores (Asda, Primark, BHS, Dunnes, Boots and Argos), cafes, a multiplex cinema (not part of the acquired property) and parking for nearly 1,700 cars. The centre was originally opened in 1978 and subsequent phases were built in 1980, 1987 and 2003.

The purchase price, reflecting a net initial yield of 8.3% (rent of circa £6m p.a.), will be funded by bank debt of approximately £44m, with Helical and PCP having a 60:40 economic interest in the property, respectively.

Michael Slade, Chief Executive of Helical, said: "This is the first major purchase we have carried out since the onset of the financial crisis. We are attracted to it because it will provide us with a good yield whilst offering a number of opportunities to use our asset management skills to deliver income and capital appreciation in the near term. We hope that this will be the first of a number of acquisitions of this nature.

"The asset constitutes the majority of the town centre of Clydebank and therefore has a very significant role to play and we look forward to making a positive contribution to the local area."

Claude Gubbay, PCP, said:"This is an asset that PCP has tracked for many years and we are very pleased to have our return to UK shopping centre investment and management sealed with this purchase. Clyde Shopping Centre is typical of the type of property we traditionally like and are looking to acquire, having so many asset management opportunities for us to work on in conjunction with our partner and the Council."

Cushman and Wakefield represented Helical and PCP and DTZ represented CIS.
Norton Rose, London and Leslie Wolfson & Co, Glasgow acted on behalf of the purchasers.

Source: Financial Dynamics

Related News