The St James shopping centre in Edinburgh is set for redevelopment after Henderson's UK Shopping Centre Fund bought the 450,000 sq ft mall from Irish investor Donegal Place Investments for £184m in a deal reflecting an equivalent yield of 5.2 per cent.
The acquisition paves way for major city centre redevelopment by combining the shopping centre site with the adjacent 240,000 sq ft St James House office block which Henderson has also bought from Morgan Stanley. Henderson will be looking to appoint a design team shortly to progress its proposals to comprehensively redevelop the site.
The existing centre, which fronts onto Leith Street and Multrees Walk, is anchored by John Lewis and includes over 50 stores including Top Shop, Next, River Island and HMV. However its design, dating from 1973, is not thought to be compatible with its setting in Edinburgh's New Town, which is a UNESCO world heritage site.
Fund Manager Myles White said: "There is considerable demand for modern retail space within the city centre but a distinct lack of supply. We are aware of demand for at least 500,000 sq ft of quality new retail space, and given the planning restrictions in the city centre, St James is the only site that can accommodate this amount of new space in a modern format and comfortable environment." BTW Shiells acted on behalf of the vendor and Cushman & Wakefield and Morgan Williams acted on behalf of Henderson.
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