Cushman & Wakefield Healey & Baker (C&W/H&B) has sold the feuhold interest in the Sauchiehall Centre, Glasgow on behalf of Internationales Immobilien-Institut GmbH (iii Fonds) to WG Mitchell Limited for £54 million, reflecting a net initial yield of 5.3% and an equivalent yield of just over 6%.
This sale represents the second largest investment transaction in Scotland of 2004. The price paid for the centre demonstrates that investor confidence in the market remains strong and that demand for prime retail investments will continue despite the recent increases in bank borrowing rates.
The Sauchiehall Centre occupies an entire city centre block on the south side of prime Sauchiehall Street opposite Marks & Spencer, Boots and Dunnes Stores, providing around 200,000 sq.ft. (18,580 sq.m) of primarily frontage shop units together with a Bank, restaurant, public house and leisure club. Tenants include WH Smith, Primark, TK Maxx, Clinton Cards, Superdrug, JJB Sports and the Royal Bank of Scotland.
John Hamilton, Partner at C&W/H&B commented, 'Having acquired this investment for iii Fonds just under two years ago, they are delighted with the result and I am sure it will continue to perform well for the purchaser.'
Internationales Immobilien-Institut GmbhH, more commonly known as iii-Fonds, is a German capital investment company established in 1958 and is a subsidiary of HypoVereins Bank AG. The funds are invested almost exclusively in commercial real estate including office, retail and business park properties.
WG Mitchell Limited was represented by Lisney (Belfast) and C&W/H&B acted for iii Fonds.