National commercial property and investment companies LCP and Evolve Estates, both part of M Core, have bought The Centre, Livingston, the main shopping centre in West Lothian's largest town, from Hines.
The price paid has not been disclosed but Hines had been seeking £70 million and an 11.45% net initial yield. Market sources suggested LCP and Evolve have paid closer to £50 million and a 13% net initial yield.
The 1 million-square-foot retail and leisure destination is located in the centre of the town, three miles from the M8 and nine miles from Edinburgh Airport.
It includes 166 shops, restaurants, cafes and leisure amenities with tenants including River Island, H&M, Primark and M&S. It is anchored by an 100,000-square-foot Asda store. There are also three car parks nearby, with a total of 3,000 spaces.
Danny O’Keefe, founding partner, Evolve, confirmed what is both companies' largest retail acquisition. The companies have been perhaps the busiest investors in shopping centre assets in the past couple of years in the UK.
“For the past few years, we have focused on building our retail portfolio, acquiring convenience-led shopping parades, centres and retail parks across the UK, which we believe to be undervalued and offer long-term rental growth.
“The Centre Livingston is our most ambitious retail acquisition yet in the UK and we are excited about the possibilities for improving it, which our proactive in-house team of experienced asset and property managers will be looking at now."
M Core, a property collective comprising LCP, Evolve Estates, Proudreed and Sheet Anchor, has invested more than £160 million over 12 months in 25 retail centres. Major acquisitions include Alexandra Retail Park in Grimsby, Parc-Y-Llyn Retail Park in Aberystwyth, and Ocean Plaza in Southport.
It says it has £300 million available to invest in retail sites, from £500,000 to £30 million locations and portfolios up to £150 million.
MacRoberts acted as the buyer's solicitor and Cited was the agent. Savills acted as an agent for the vendor, and its solicitor was Pinsent Masons. Retained letting agents for the centre are Savills and EYCO.