One of the odd things about the commercial property market this year has been the buoyancy of the investment market for shopping centres and retail parks. The oddity is because the retail sector has been having a hard time. At the front of the queue to buy has been LaSalle Investment Management which has now paid £4.85 million for the 11,148 sq.metres (120,000 sq.ft.) Artizan Shopping Centre, Dumbarton, on behalf of pension clients, from Ireland’s National Asset Management Agency. This gives a yield of 13.6%, but the centre is 54% vacant by leasing area.
LaSalle said it would invest substantially to reinvigorate the centre to raise the standard for consumers. This is the seventh shopping centre purchased by LaSalle since 2009. LaSalle’s Andrew Bull commented: “This purchase demonstrates that value within the secondary market is beginning to come through and we have put together a solid business model to take the asset forward.”
In another retail transaction, Morgarth Group, through Colliers International and Morton Fraser, has paid £12 million for St Catherine’s Retail Park (South), Perth on behalf of an overseas investor. The yield of 6.82% reflects that it has strong medium term growth potential and a good range of retailers including Wickes, Pets at Home and JJB Sports.
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