Germans Invest in Glasgow Retail

LONDON-The German open-ended property fund iii-Fonds has bought Capital & Regional and Stannifer’s Sauchiehall Centre on Glasgow’s prime Sauchiehall Street for £46.25 million ($72 million).

The Sauchiehall Centre was bought by Capital & Regional as part of a portfolioin 1997. C&R successfully won planning consent for a scheme to re-orientate the centre with more units facing on to Sauchiehall Street. Stannifer bought a 50% stake in the scheme in 2001 and provided project management services for the redevelopment.

The changes created larger units, which attracted value fashion operator Primark in 66,000 sf while retaining the original tenants TK Maxx, WH Smith, Superdrug & JJB Sports in reconfiguredunits. A Healthlands gym was created in a former nightclub unit. The centre now comprises 206,000 sf producing a total rental income of nearly £3 million ($4.7 million) per annum.

Montagu Evans advised Capital & Regional / Stannifer and Cushman & Wakefield Healey & Baker advised the purchaser.