British Land has announced that it has signed an agreement to purchase 50 per cent of SouthGate in Bath from Multi Southgate (LP) Limited for £101 million. The other 50 per cent of the property is owned by Aviva Investors. The acquisition is expected to be completed by the end of the month.
SouthGate is a new open-air retail scheme located next to the Bath railway station measuring 430,000 square feet. It forms the southeast quadrant of Bath city centre. Phase 1 opened in 2009, and the final phase was completed in the summer of 2013. It has a total of 55 retail units, 14 leisure units, 25,000 square feet of office space and a car park.
The main tenants of the scheme are H&M, Topshop, Boots and Debenhams. Other high-profile retailers have also been attracted to this location, including Apple, Hollister, All Saints, Urban Outfitters, and Boux Avenue. SouthGate is currently 95 per cent occupied and offers tenants some of the best configured retail space in the city. A full-two-third of the units are larger than 5,000 square feet.
The car park is the largest in Bath, and has 860 spaces. When combined with the top eight retailers in the complex, it accounts for more than half of the rental income from SouthGate.
Charles Maudsley, the head of retail for British Land, stated that SouthGate’s strong fundamentals, lack of out-of-town competition, as well as footfall make it “one of the best centres in the south of England.” It is well let and in a prime location where tourists shop and spend a significant amount of money.
Bath is a historic city and a top five tourist spend location outside of London. Over 4.6 million tourists visit each year. Since the scheme is located near the railway and bus stations, it is in a prime market with an annual footfall of 18 million visitors.
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