Redevco acquires Glasgow mall and office block for EUR 149m

Dutch property company Redevco has bought Glasgow's up-market Princes Square shopping centre for £100 mln (EUR 149 mln) in one of few deals of its kind since the onset of the turmoil in the credit markets. The transaction covered the 9,200 m² mall and the 11,600 m² Guildhall Office Development nearby.

However the vendor, a joint venture of UK real estate investment manager Hermes and Invista Real Estate, had to accept a £15 mln discount on the original £122 mln price tag set when marketing began in February.

Chris Macfarlane, a partner at King Sturge's Scottish office, which acted for Redevco, insisted that a fair price was paid for the two properties given the market conditions. He was quoted by Scottish newspapers as saying: 'I don't think it'll be perceived as a bargain. Everyone is accepting that pricing has moved on in the market. The market has been uncertain since June-July and the number of transactions is significantly down.'

'An acquisition such as this is proof that deals can still happen where a quality product is available along with the opportunity to add value,' Macfarlane added.

Princes Square is a Grade B listed building with a five-level shopping centre on Buchanan Street. It has 49 retail units with upmarket fashion retailers including Reiss, Womenswear, Oasis, Hugo, Links of London, Ted Baker, French Connection, Calvin Klein and Whistles. The retail element of the investment also includes premises on Buchanan Street and Queen Street.

The Guildhall on Queen Street is arranged over seven floors around a full height central atrium. Occupiers include Clydesdale Bank plc. Royal Bank of Scotland, HBoS and News International.

Simon Smith, managing director of Redevco UK said 'the acquisition of Princes Square fits Redevco UK' strategy of diversifying its retail holdings to include shopping centres.'