15 November 2011 - BAM Properties has sold the final part of its £37m retail development on Buchanan Street, Glasgow, to a client of La Salle Investment Management (LIM) for £24.5 million reflecting a yield of 5%.
BAM acquired the property which it extensively refurbished in 2008. The 27,437 sq ft (2,548.89 sq m) retail unit over basement, ground and two upper floors was let to Nike in 2010 for a term of 15 years at £1.3 million p.a. The sale to LIM will be completed by the end of November 2011. John Burke, Managing Director BAM Properties, said ‘BAM received a number of offers for the property but they did not meet our price expectations and so we chose not to sell. However, shortly after we withdrew from the open market, we were approached with an offer at the required price.
‘Sellers in the current market are faced with the dilemma that demand for anything other than prime is thin. Many purchasers are seeking discounted prices from those perceived to be selling under pressure.
‘When it came to Buchanan Street, BAM Properties’ message to the market was clear: it was a prime site and we would sell at only at a price representing worth. We did not have to wait long. The quick response from a keen buyer, at the required price, demonstrates the strength of demand for properties let to great tenants in the best retail pitches of the strongest cities. Buchanan Street is one of Europe’s leading retail thoroughfares and Glasgow attracts a footfall with a spending power that is ahead of all the other UK regional cities.
‘This sale is the last in a series of successful transactions arising from the redevelopment of the site at Buchanan St. Earlier sales, including, 28 Buchanan Street, four arcade units, and the upper floors of 20 Buchanan Street, realised over £12m. ‘BAM continues to focus on prime properties that attract demand from both retailers and investors.’