Sale of sales as Silverburn slashes price for big sell-off

Published on Friday 11 September 2009 21:35

SILVERBURN shopping centre in Glasgow has been put on the market in one of the biggest distressed property sales this year.

Sources claim that Bank of Scotland, which provided the debt, has prompted the sale of the one million square feet mall after a review of its assets.

The 350 million centre, which opened just two years ago, has seen more than 100m wiped off its value and it is thought the bank, wants to cut its losses.

One source claimed it could signal the start of a series of property sales by Lloyds which is keen to offload overvalued assets.

The directors of Silverburn, Guernsey-based owner Retail Property Holdings, have acted with Deloitte, the receiver to holding company The Elementary Property Company and appointed Jones Lang LaSalle to find a buyer.

David Raven, who is leading the search for Jones Lang LaSalle, is convinced that the centre will attract keen interest.

Property sources say that now is a good time to sell as there are so few good assets coming to the market as sellers hold out for an upturn. This could prompt a bidding war for Silverburn.

Jones Lang LaSalle reports that, so far this year, 12 shopping centres have been sold for a combined 1.075 billion.

Plans were announced in June to invest 20m in the third and final phase of Silverburn's expansion programme.

One large "anchor" unit and ten smaller shops are to be added to the complex, extending Scotland's largest purpose-built regional shopping development to 115 shops covering almost 1.1 million square metres.

Raven said: "The proposed sale of Silverburn, together with other sales which are anticipated to close by the year end, should enable the market to see an annual turnover of over 2bn, double the 2008 turnover.

"This illustrates the investor confidence returning to the market."

Retail Property Holdings is an offshore company owned by Jersey-based retail tycoon Paul Green. Its parent and related companies, also domiciled in Guernsey, have been placed into administration.

It emerged in July that five companies connected to Green had fallen into administration: Elementary Property Company, Premier Markets, Elementary Holding Company, Thorotat and Quest Investments.

The elusive entrepreneur found himself in the spotlight two years ago after it was found that a 950 personal donation to Wendy Alexander's Scottish Labour leadership campaign broke the rules governing party finance.

He was never found guilty of any wrongdoing, but it led to the Alexander's resignation as party leader.

The businessman has been involved in developing a number of retail parks in the city after acquiring unwanted land, and turning it into desirable shopping destinations, such as the Parkhead Forge and the old Goodyear tyre factory in Drumchapel, which was transformed into the Great Western retail park.