West coast retail park that's home to major names sold in £8 million deal

Property experts say retail parks have been resilient throughout the challenges faced by the wider sector.

The site consists of two retail warehousing units, which are let on long-term leases to Aldi and Home Bargains, alongside a drive-thru coffee shop unit. Picture: McAteer Photograph

A Renfrewshire retail park that’s home to Aldi and Home Bargains has changed hands for just under £8 million amid “resilient” demand for such assets.

Paton’s Mill Retail Park, which is located on the edge of Johnstone, has been acquired by OCO Group - operator of the on-site Starbucks coffee shop franchise - for some £7.9m, in line with the asking price, property advisers noted. Knight Frank Investment Management Long Income Property Unit Trust (KFIM Liput) forward funded the original development in 2018 on the former site of Paton’s Mill, an historic textile factory.

The site consists of two retail warehousing units of 17,150 square feet and 15,286 sq ft, which are let on long-term leases to Aldi and Home Bargains, respectively, alongside the 2,222 sq ft drive-thru coffee shop unit currently occupied by OCO. Global property consultancy Knight Frank represented KFIM Liput, the vendor.

John Rae, capital markets partner and head of Knight Frank Glasgow, said: “Having funded the original development, this is a successful exit for KFIM Liput. Retail parks have been resilient throughout the challenges faced by the wider sector in recent years, which is reflected in the price for Paton’s Mill.

“The park has strong occupiers with long-term commitments and a relatively captive market nearby. The fact that the park was purchased by one of the occupiers is testament to the success of the development and the strong trading performance of the tenants since it opened around five years ago,” he added.

Retail park in affluent suburb of Glasgow sold for almost £12 million