Ocean Terminal is sold off to European property investors

OCEAN Terminal, the flagship shopping centre on Edinburgh’s waterfront, has been sold by its owner, Forth Ports.

New owners Resolution Property, a European real estate investor, bought the centre for an undisclosed sum, supported by funding from Lloyds Banking Group (LBG).

Last July, when the “for sale” signs went up, Forth Ports put up a selling price of £100 million. At the time, it was reported that any new buyer would have to refinance the centre’s £68m debt.

Resolution will be working in partnership with Forth Ports to promote and develop the nine-acre Waterfront Plaza site fronting the centre, forming part of the wider Harbour at Leith Docks.

The Waterfront Plaza, to the east of the centre, has planning consent for a mixed-use “urban village” development, including a hotel and other business and leisure facilities.

The masterplan allows for development comprising more than a million square feet of commercial, leisure, retail and Class 4 business space.

The 420,000sq ft indoor retail centre, which celebrated its tenth anniversary last year, is “anchored” on a 100,000sq ft Debenhams department store overlooking the Royal Yacht Britannia. Thousands of people visiting the yacht pass through the centre each year.

Other retailers based there include BHS, Marks & Spencer’s Simply Food, H&M Hennes and Gap and Superdry, in addition to a 12-screen Vue Cinema.

Restaurants include Frankie & Benny’s, Zizzi, Pizza Express and the Handmade Burger Company.

Nigel Robson, a partner at Resolution Property, said: “Ocean Terminal shopping centre is a significant addition to our European retail portfolio.

“We give credit to Forth Ports for the development of a quality destination shopping centre with an excellent retail and catering mix.

“Leveraging off its current success and the affordable rents, which significantly undercut other retail locations in Edinburgh, we are confident that we can take Ocean Terminal forward and further enhance the retail and catering offer.”

The centre was formerly a joint venture between Forth Ports and HBOS. In 2009, the bank’s new owners, LBG, sold its 50 per cent equity in the development back to the ports company for a minor cash consideration of £2m, but left it with the debt facility extending to 2015.

Forth Ports owns eight commercial ports in the UK – the Port of Tilbury on the Thames; six ports on the Forth Estuary, including the ports of Leith and Grangemouth; and the Port of Dundee on the River Tay.

Charles Hammond, chief executive of Forth Ports, said: “We and our owners believe there is significant potential for Forth Ports to develop our ports business both in Scotland and in England, capitalising on their strategic locations and other emerging commercial opportunities, particularly in the renewables sector.

“As such, while Ocean Terminal is a valuable asset, it is clear that its future will be better served under new ownership, and we are delighted that it has been acquired by a new owner with the retail pedigree of Resolution.

“We will work with Resolution to ensure that the potential of Ocean Terminal, Waterfront Plaza and the wider Harbour area as a whole is fully realised.”

Forth Ports plans to use sale proceeds to further develop its port business.