Developers defy retail woes to unveil new Greenlaw site

Published on Tuesday 9 June 2009 21:35

A RARE deal to build a new Scottish retail park was hailed as "an unusual beast" by developers yesterday as they unveiled plans for a five-stage shop, restaurant and leisure scheme.

The first phase of the 30 million development in East Renfrewshire will include a retail complex and a restaurant. It will be anchored by a new 4,000sq ft Tesco Express.

Bryan Wilson, managing director of developer Gleniffer Estates, yesterday announced acquisition of the 6.14 acre site off the M77, which already has planning permission in place for the first three phases.

The Greenlaw Village development – seven miles from Glasgow city centre – is part of a wider scheme planned for the site near Newton Mearns.

Clydesdale Bank and Gleniffer's joint venture partner, commercial developer Walker Group, have backed the deal.

Wilson commented: "The fact we were able to secure funding bears a testament to the quality of the development and the location. Newton Mearns is one of the top locations in the country and Tesco is a top retailer."

Gleniffer acquired the site from fellow developer Elphinstone, which has plans to develop a 400,000sq ft business park and hotel on an adjacent site.

Wilson admitted that putting the development together had "taken some time" due to the current climate for funding property deals.

Banks are reluctant to lend and some institutions including HBOS and Anglo Irish have withdrawn from active roles.

"I am not sure where we would have been if our funding partner had been another bank in the current climate," said Wilson.

Although Clydesdale has funded Gleniffer's last three developments – all Tesco Express stores – Wilson conceded that the poor market meant the deal took 18 months to complete.

He explained: "Let's just say both parties (Gleniffer and Elphinstone] were delighted to get the deal over the line on the basis we managed to get funding."

Wilson added: "We have been working on the project for 18 months now. Although we had sorted out planning and building work some time ago, it has taken quite a lot of time in terms of getting funding.

"We wouldn't have got the money unless it was first class location with a first class proposal," he added.

Gillian Clark, corporate partner at Clydesdale's Glasgow Financial Solutions Centre, said the deal showed the bank was "keen to assist companies with strong business cases and positive growth potential".

Andrew Kennedy of property agents DTZ said the securing of Tesco as a tenant was "a significant boost to the development".

Kennedy said he expected the first phase to be fully let by March 2010.