Glasgow retail park sells prior to BidX1 auction after ‘competitive tension’
A retail park close to Glasgow has been sold for well in excess of its £6.5m guide price after BidX1 received several bids prior to auction.
Global private equity firm Cerberus had instructed BidX1 to offer the Westway Retail Park in Cumbernauld in its 4 November online auction.
Oliver Childs, BidX1’s head of commercial auctions, said the lot was sold prior after “competitive tension” pushed the price to more than 15% ahead of the guide. Contracts have been exchanged under standard auction terms using the BidX1 digital platform.
A retail park close to Glasgow has been sold for well in excess of its £6.5m guide price after BidX1 received several bids prior to auction.
Global private equity firm Cerberus had instructed BidX1 to offer the Westway Retail Park in Cumbernauld in its 4 November online auction.
Oliver Childs, BidX1’s head of commercial auctions, said the lot was sold prior after “competitive tension” pushed the price to more than 15% ahead of the guide. Contracts have been exchanged under standard auction terms using the BidX1 digital platform.
The purchaser is UK-based and beat a number of underbidders including family offices, plc propcos and high-net-worth regional investors.
The guide price reflected a net initial yield of 13.76% and a low capital value of £47.89 per sq ft for the 11-unit retail park, which occupies a 43-acre site with significant further development potential. The anchor tenant is B&Q with other key national tenants including Halfords, Carpetright and Pets at Home. However, two tenants are in administration and one unit is vacant.
It 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 Carlyle Group. Halladale’s 2006 results listed it with a value of £27m.
Legal documents 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 triggered the sale, instructing BidX1 and Savills.
It contributed to a total of £17.4m from BidX1’s 4 November auction, with 32 of 36 lots finding buyers – an 89% success rate. Another highlight was a farmhouse on 214 acres in Powys, Wales (lot 19), which sold for £826,000.
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Photo © BidX1
