The German fund manager, Deka, has reportedly agreed to sell its St Enoch Shopping Centre in Glasgow to the US retail and leisure developer, The Mills Corporation, for £270m.
The 715,000 sq ft centre provides 85 retail units over two floors and is anchored by a 270,000 sq ft Debenhams. Other tenants include Bhs, Boots, HMV and Gap.
Deka put the centre up for sale in October. The property is the largest UK asset in Deka Immobilienfonds, which faces liquidation after Managing Director, Michael Koch, was fired over alleged financial irregularities.
The Mills Corporation, a REIT that owns 34 shopping and leisure centres in the US and one in Spain, put the St Enoch Centre under offer earlier this week. If the deal goes through, it could be the start of a significant investment in the UK.
Ronald Weidner, Mills’ new Head of International Operations, is known to be keen to increase investment across Europe, and the St Enoch Centre would give the corporation a foothold in the UK market.
The news comes a day after it emerged that a German fund sponsored by Commerzbank is set to buy another of Deka’s big assets, the Lloyd’s Building in the City of London.
CB Richard Ellis and FPDSavills are advising Deka. Mills declined to comment.
Source: Freeman News/ Property Week