The Artizan Shopping Centre in western Scotland has been purchased by a subsidiary of real estate services firm Jones Lang LaSalle, it was confirmed today.
LaSalle Investment Management has paid £4.85 million for the 120,000 sq ft site in Dumbarton, the seventh UK shopping centre deal completed by the firm since 2009.
Purchased from Ireland’s National Asset Management Agency the deal reflects a net initial yield of 13.6 per cent and a triple net yield of 11.2 per cent.
With a current 33 per cent vacant rate by estimated rental value and 54 per cent vacancy rate by net leaseable area the site needs some rejuvenation but LaSalle believes that its has made a prudent investment.
Andrew Bull, Director at LaSalle, said: “We are delighted to have completed another acquisition of a UK shopping centre.
“This purchase demonstrates that value within the secondary market is beginning to come through and we have put together a solid business model to take the asset forward.”
The recent economic downturn has led to a shortfall in investment at the centre but lying 15 miles to the north-west of Glasgow, close to tourist attractions Dumbarton Rock and Castle and near to the A82 which joins onto the M8 motorway, it is well situated for passing trade.
Successful shopping centres are an increasingly attractive asset for investors as the development pipeline remains stubbornly dry.