British Land, one of Europe’s largest retail investment trusts, is to purchase 50% of SouthGate in Bath for £101 million.
The remaining 50% of the new complex is owned by Aviva Investors. The acquisition is expected to complete by the end of September.
SouthGate is the new 430,000 sq ft, prime open air retail scheme next to Bath Spa railway station which forms the south east quadrant of Bath’s city centre. It first opened in 2009 (phase 1), with the final phase completing in summer 2013. The scheme has 55 retail units, 14 leisure units (including the Vaults restaurant area and public square adjoining the railway station), a car park and 25,000 sq ft of office accommodation.
The scheme, anchored by Debenhams, H&M, Topshop and Boots, has also attracted several new, high profile retailers to the city including Hollister, Apple, Urban Outfitters, All Saints and Boux Avenue.
SouthGate, which is 93% let, offers some of the best configured retail space in Bath, with two-thirds of the units being larger than 5,000 sq ft. The car park is the largest in the city, with 860 parking spaces which combined with the top eight retailers, accounts for more than 50% of the rental income from SouthGate.
Charles Maudsley, Head of Retail for British Land, said: “SouthGate’s strong fundamentals, the lack of out of town competition and footfall make it one of the best centres in the South of England. It is well let, modern and excellently located in a prime market with significant tourist spend.
“The scheme has dramatically altered the retail offering in an area historically undersupplied with good quality, well configured retail space.
“We will build on these fundamentals by completing the final lettings post development, broadening the tenant mix to appeal to a wider customer base, and improving the scheme’s presence and experience.”