GALLAGHER Shopping Park in Port Glasgow is set for a £10 million-plus extension as part of a UK-wide development programme by property management firm Ediston.
Edinburgh-based Ediston will expand its retail and office portfolio through a number of projects, including the addition of 132,000 square feet of new-build space at Gallagher, which already features chains such as Costa Coffee and B&Q.
Work is set to begin in August and will take a year to complete, and follows last year’s acquisition of Gallagher by the Clydebuilt Fund, a joint venture between Ediston and Strathclyde Pension Fund.
Ediston, founded in 2004 by former Standard Life Investments director Danny O’Neill, plans to spend £200m this year on various development projects, up from £73m in 2014. As a result, its overall retail park portfolio will expand by 323,000sq ft.
Other Scottish sites scheduled for work include Heathfield in Ayr, which is managed by the Ediston Opportunity Fund, and Tesco Pension Trustees’ retail park at Robroyston in Glasgow. Retail parks in Sunderland and Wales are also due for development.
In addition, Ediston is launching a 113,000sq ft office building in Bath at a cost of £45m, which will be the city’s first Grade A office building in 20 years when it is completed in 2016-17.
Andy McKinlay, director of development at Ediston, said demand for space in retail parks has “definitely picked up”. The company closed out last year with the completion of Jarman Square Leisure Park in Hemel Hempstead with an end value of £33m.
“Over the last three years we have had tremendous success in the creation of institutional stock from the refurbishment of well-located but secondary retail and office property and the delivery of speculative office redevelopments,” said McKinlay.
“Our focus in 2015 is to build upon that success, and deliver the consented retail park developments we have worked hard to secure and pre-let in 2014, but also to acquire office refurbishment opportunities and sites for speculative office development in regional centres where we believe we can add significant value and expertise to growing institutional demand.”
Ediston has expanded its development team with the addition of two staff members. It has also recruited Graham Lind from London-based retail warehouse specialist Wilkinson Williams.
SUBSCRIBE TO THE SCOTSMAN’S BUSINESS BRIEFING