Henderson Park, the European private equity real estate firm headquartered in London, announces that it has exchanged contracts for the acquisition of Silverburn, a 100,000sq m flagship shopping centre in Glasgow, Scotland.
The acquisition was completed in an off-market transaction from a joint venture between Hammerson and Canada Pension Plan Investment Board for £140M. This acquisition has been undertaken alongside Eurofund, who will act as Henderson Park’s operating partner.
Silverburn is a modern, high quality shopping centre that originally opened in 2007 and currently consists of 125 grocery, retail and leisure units including 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.
The centre is currently 78 per cent physically occupied and rent collection from the remaining tenants has been strong standing at 92 per cent for Q3 2021.
Christophe Kuhbier, Managing Director of Henderson Park, commented: “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. 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.”
