Scottish retail park up for grabs at knockdown price

Global private equity firm Cerberus has instructed BidX1 to offer a Scottish retail park at auction next month with a knockdown £6.5m guide price. Online specialist BidX1 is working with Savills to bring Westway Retail Park in Cumbernauld to market. The guide price reflects a net initial yield of 13.76% and a low capital value of £47.89 per sq ft. The property, anchored by B&Q, is an early listing for BidX1’s 4 November sale in order to give it a longer more bespoke marketing period than is typical for auctions. The 11-unit retail park was completed at the peak of the market in 2006 by UK developer Halladale (which became Stockland Halladale in 2007) in partnership with US-based investment firm Carlyle Group. The asset was listed in Halladale’s 2006 results with a value of £27m. Legal documents made public as part of the marketing process for the asset indicate that Clydesdale Bank debt on the asset was later transferred to Promontoria, the joint name for Cerberus Global Investments B.V. and its Dutch associated group companies. Promontoria has now triggered the sale, opting for the transparency and market exposure of a digital auction. Westway is two miles from Cumbernauld town centre and 14 miles from Glasgow. The park is anchored by B&Q (74.1% of the current income), with other key national tenants including Halfords, Carpetright and Pets at Home. However, two tenants are in administration and one unit is vacant. Westway is 85% let by floor area and generates a gross passing rent of £1,051,950 per annum, with a net operating income of £946,512 per annum. The 11 units provide 135,735 sq ft of unrestricted non-food retail warehousing space and 665 car parking spaces on a 43-acre site. Planning permission is in place for a further 194,672 sq ft of retail warehousing, whilst an application for Planning Permission in Principle for 303,552 sq ft of mixed uses including a cinema, commercial leisure, hotel, food/beverage, foodstore, business incubator and car showrooms is due to be presented to Planning Committee on 12 November. The joint instruction follows the sale under auction contract last month of two shopping centres in administration. BidX1 director Simon Bailey said: “We’re pleased to be working alongside Savills on another significant retail asset, following last month’s sale of two shopping centre investments in Liverpool and nearby Ellesmere Port. Offered on behalf of a multinational corporate client, Westway Retail Park provides both asset management opportunities and the potential for further development.” To send feedback, e-mail julia.cahill@egi.co.uk or tweet @EGJuliaC or @estatesgazette Photo: BidX1