The largest undercover shopping centre in Scotland is up for sale with a £175m price tag. Delancey, the owners of EK East Kilbride, is also shedding a second mall in Wolverhampton for £50m.
Delancey bought both shopping centres — in a joint venture with RBS together with other UK assets in December, 2010, as part of the Blade portfolio from previous owners development manager Propinvest — and both sales are part of a wider disposal of the remainder of that property package.
A spokesman for the recently rebranded EK East Kilbride complex confirmed agents have been appointed to market the shopping centre. “The last three years have been spent enhancing the retail offer with targeted lettings and relocations,” he said.
“East Kilbride offers some fantastic opportunities which will appeal to the right purchaser and we hope the new owner will work closely with South Lanarkshire Council to take forward our detailed plans for a redevelopment of the Olympia Mall and an improved ice rink.”
Work is already underway to create a leisure hub within the Olympia Mall including new restaurants and a gym and last year South Lanarkshire Council unveiled plans for a £1.5m upgrade of the existing ice rink. Both projects are expected to be completed late next year.
“Such activity will heighten the centre’s already impressive leisure offer and position EK Shopping Centre as the vibrant retail and leisure centre of choice in the area,” added the spokesman.
Almost 300 miles south, plans were also recently announced to transform the Mander Centre in the heart of Wolverhampton. With Debenhams now almost certain to take a three-floor unit, many experts feel the Delancey-owned site is undervalued at £50m. Debenhams was originally expected to be a key focus of the city’s planned new Summer Row shopping centre which was scrapped three years ago when developers failed to secure adequate finances.
Under the £30m proposals the former TJ Hughes store will be extended to 94,000sq ft enabling it to house the new department store. Three new large shop units will also be opened as part of the project along with eight kiosks. Another 39 smaller units will be condensed into 11 larger ones and shop fronts will be extended to improve the look of the centre while the layout will also be overhauled.
Property agent Cushman & Wakefield has been appointed to handle the Wolverhampton sale. Director Tim Haden-Scott said his company had already received a number of enquiries. “We are confident we will achieve our asking price, if not more, and definitely find someone willing to do the development and take it forward,” he added.
He explained Delancey never intended to be long-term holders of the centre. “We are now looking to help the lender, RBS, exit at the right price and recover as much of their money as possible.”
Delancey and RBS are also selling Brooklands Retail Park, near Cardiff, and considering options for three Total Fitness gyms in Bootle, Huddersfield and Whitefield as part of the disposal.
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