Mall transaction

Silverburn sold in £140m private equity deal

Silverburn

Upside potential: Silverburn shopping centre

Silverburn shopping centre in Glasgow has been acquired in a £140 million deal by Henderson Park, a European private equity real estate firm headquartered in London.

The 100,000 sqm centre was bought in an off-market transaction from a joint venture between Hammerson and Canada Pension Plan Investment Board. Eurofund will act as Henderson Park’s operating partner.

Silverburn opened in Pollock in 2007 and its 125 tenants include Next, Marks & Spencer and TK Maxx. 

The leisure extension, which was completed in 2015, added a 14-screen Cineworld and 11 restaurant units including Pizza Express, Five Guys and TGI Fridays.

The centre sits on a 67-acre freehold site, which also includes 4,500 car parking spaces and the largest Tesco in Scotland, under a long leasehold interest. 

Silverburn is a Top 20 UK shopping centre and historically has generated consistently high footfall of 15 million.

It is currently 78% physically occupied and rent collection from the remaining tenants has been strong standing at 92% for Q3 2021.

Christophe Kuhbier, managing director of Henderson Park, said: “Silverburn, with its large catchment area close to one of the UK’s largest cities, has limited direct competition and posted robust footfall levels and cash collection this year.

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“With retail valuations under pressure in recent years, we have been monitoring the UK prime retail market and we see here an excellent opportunity to acquire this asset off-market and invest in a modern asset with immediate upside potential.

“Alongside our specialist operating partner Eurofund, our asset management plan aims at attracting new occupiers that focus on leisure, food and beverage and experiential retail sectors, completing the repositioning of the asset as a premier retail and leisure destination.

“We look forward to investing targeted capital expenditure to maximise the potential of this asset and delivering strong returns to our investors.”

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