Land Securities has announced that it has bought Overgate shopping center, Dundee, Scotland from the Lend Lease Overgate Partnership for £141 million (approx. 165 million) representing a yield of close to 6.9%.
Overgate has more than 60 units and two multi-story car parks with 1,000 spaces. It is anchored by Debenhams, Primark and Next and has other well-known retailers under its roof, including New Look, River Island, French Connection, Office, Top Shop/ Top Man, WH Smith and Argos.
Land Securities' Managing Director for Retail, Richard Akers, said: "Acquiring Overgate in Dundee provides a strong income return with the scope to further improve the center by enhancing the tenant mix and bringing new retailers to Dundee. We have identified good tenant demand for this modern center, which dominates the retail offer in Dundee.
"It will add further value to our portfolio as we strengthen the center's appeal as a key shopping and leisure destination in Scotland."
Dundee is set to benefit from significant regeneration projects, mostly along the waterfront, just five minutes away from Overgate.
The city is also expected to be one of the key locations in Scotland for the delivery of sustainable energy solutions.
Cushman and Wakefield has acted on behalf of Land Securities and Jones Lang LaSalle on behalf of the Lend Lease Overgate Partnership.
Source: Land Securities