A retail block in the heart of St Andrews has changed hands for more than £4.5 million.
The sale is being seen as evidence of the town’s resistance to the harsh economic climate that has ravaged so many town centres.
The “prime retail space” on Market Street and Logie’s Lane was snapped up by CBRE Investors. The firm paid £4.55 million for the block of units, which include Edinburgh Woollen Mill, Monsoon and Accessorize.
Colin Finlayson is director of property consultants Jones Lang LaSalle, which acted for CBRE Investors during the negotiations.
“The units comprise prime retail space in the heart of St Andrews,” he said. “The price reflects a net initial yield of 5.7% … and the units are multi-let to a number of high-profile brands and organisations including Monsoon, Accessorize, Edinburgh Woollen Mill and Shelter.”
Mr Finlayson said CBRE was keen to invest in St Andrews, suggesting it was one of the few places to have successfully weathered the devastating global economic downturn.
“This is an excellent long-term investment for our client,” he said. “St Andrews has proven to be a very defensive place to invest in over the last few years.
“It is one of the few UK towns which hasn’t witnessed any rental decline.”
Mr Finlayson is confident the future is bright for established businesses in the town.
“With strong tenant interest and limited supply, this investment will perform well for its new owners,” he added.
The units were sold to CBRE by Standard Life Investments, who had owned them for almost three decades.
Andrew Jackson of the firm said they were offloading the site following the completion of a “portfolio review.”
“This asset has performed very well for Standard Life’s life property fund since it was purchased and redeveloped in 1982,” he said. “The proceeds will be recycled to help satisfy our current investment requirements in terms of sector and location.”