BAM Properties, the UK development arm of Euronext-listed Royal BAM Group, has sold the final part of its £37 mln (EUR 43 mln) retail development on Glasgow's Buchanan Street to a client of La Salle Investment Management for £24.5 mln, reflecting a yield of 5%.
BAM Properties, the UK development arm of Euronext-listed Royal BAM Group, has sold the final part of its £37 mln (EUR 43 mln) retail development on Glasgow's Buchanan Street to a client of La Salle Investment Management for £24.5 mln, reflecting a yield of 5%.
The sale is expected to be completed by the end of November 2011.
BAM acquired the property in 2008 and extensively refurbished it. The 2,548 m2 retail unit was let to Nike in 2010 for a term of 15 years at £1.3 mln per annum.
'BAM received a number of offers for the property but they did not meet our price expectations and so we chose not to sell. However, shortly after we withdrew from the open market, we were approached with an offer at the required price,' commented John Burke, managing director of BAM Properties.
He added: 'Sellers in the current market are faced with the dilemma that demand for anything other than prime is thin. Many purchasers are seeking discounted prices from those perceived to be selling under pressure.'
