Shopping centre rakes in £5m investment as bank sells stake

Published on Saturday 19 December 2009 10:55

BOSSES at Forth Ports have pledged to invest £5 million in Ocean Terminal after buying out Bank of Scotland's stake in the shopping centre.

The bank had owned a 50 per cent share in the complex, but relinquished its holding in a deal worth 2m.

Forth Ports today said it would inject a minimum of 5m into Ocean Terminal by 2013 and had an eye on property development around the centre once the tram works were complete.

The money is expected to be spent on alterations which will allow more space for retailers.

Charles Hammond, group chief executive of Forth Ports, said: "This transaction not only provides certainty about the short-term financing of Ocean Terminal but also, importantly, gives Forth Ports control of the development site around the shopping centre, known as The Harbour.

"It also provides our property business with a substantial increase in its income base, and the upside of an increase in the value of the asset as property markets recover."

According to Forth Ports, the shopping centre was valued at 81.75m earlier this year.

Mr Hammond added: "Clearly, what we would be expecting to use the 5m for is physical alterations to the building to allow for new lettings.

"We're very positive about the long-term future of Ocean Terminal – it puts a substantial amount of income into our property business, and we're believers in its long-term future."

Ocean Terminal Limited, which runs the shopping centre and is now wholly owned by Forth Ports, has a loan of 68m from Bank of Scotland, which has now been extended until 2015.

Forth Ports said the extension provided a good opportunity for the company to realise the benefits of development expected to take off once the tram line is up and running.

Councillor Tom Buchanan, the city's economic development leader, said: "We're always happy to work with any organisation that wants to invest in the city.

"If this move helps Forth Ports realise its ambitious plans for the Waterfront, in line with our own, then that is all to the good."

Earlier this year, Forth Ports said the regeneration of Leith Docks was expected to get under way within three years.

The company believes that the right time to start developing the planned "urban villages" is likely to be in 2012, when the tram line is expected to be fully operational.