Supermarket in one of Glasgow’s most affluent areas up for sale at nearly £7 million
“The store performs well with a strong catchment area, and the location is well known as the former home of the only Whole Foods in Scotland” – Douglas Binnie, Knight Frank
A supermarket in one of Glasgow’s most affluent suburbs has been put on the market for nearly £7 million.
The Lidl store in Giffnock, in the city’s south side, is being marketed by commercial property consultancy Knight Frank for offers over £6.82m. The site was previously home to Scotland’s only Whole Foods grocery chain, until 2017.
Property agents noted that the standalone supermarket was leased to Lidl until 2041. The site is also underpinned by “significant residual value” through its potential repurposing for residential use. The price tag reflects a net initial yield of 5.5 per cent.
Knight Frank noted that there had been a spate of deals involving retail property in and around Glasgow this year, including the sale of Bridgewater Shopping Centre in Erskine for around £21m. Elsewhere in Scotland, Eastgate Shopping Centre in Inverness and Aberdeen’s Union Square have also been put up for sale, as interest in the sector increases across the country’s popular thoroughfares.
Douglas Binnie, capital markets partner at Knight Frank Glasgow, said: “Giffnock’s Lidl is a rare opportunity to acquire a prime supermarket investment in one of Glasgow’s most affluent suburbs. It offers secure, long-term income backed by a strong covenant from one of the UK’s best-performing grocery brands, with the Lidl in Finnieston trading on a yield of just 5 per cent earlier in the year.
“The store performs well with a strong catchment area, and the location is well known as the former home of the only Whole Foods in Scotland,” he added. “The site also has potential for residential use in the future, given Giffnock’s reputation as a highly desirable place to live just outside Glasgow.”
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