Kingsway West Retail Park in Dundee has been sold, with the new US owners planning to carry out significant upgrades to the major city shopping centre.
Los Angeles-based Ares Management confirmed that real estate funds it manages have acquired the 300,000 square feet site from Land Securities.
The park is home to major retailers including Next, Homebase, Boots, Currys, Toys R Us and DFS.
It is one of three retail properties acquired by Ares in the transaction, with the others in Newcastle and Derby.
Wilson Lamont, a London-based partner in Ares Real Estate Group, said they were delighted to be acquiring Kingsway West and the two other sites.
He continued: “This transaction fits well within our strategy of purchasing high-quality retail parks in major UK cities, where rents are sustainable, tenants have strong credit ratings and established brands, and long-term cash flows are robust.”
Ares plans to make significant upgrades to Kingsway West to attract additional well-known UK retailers, improving the range of shops.
It believes the upgrades would provide Dundee-area shoppers with an enhanced retail and leisure experience.
Ares will also seek to upgrade accommodation for existing tenants and invest in the general landscape and ambience of Kingsway West.
It says the move would help improve the city’s position as a major shopping destination and further secure the many hundreds of existing retail jobs that the park generates, with the prospect of creating further opportunities. Proposals will be brought forward in the new year.
Ares is a publicly traded, leading global alternative asset manager with approximately $92 billion of assets and more than 15 offices in the United States, Europe and Asia.
It aims to deliver strong risk-adjusted investment returns throughout market cycles.
Land Securities, Britain’s largest listed property developer, is following a strategy of selling selectively and recycling capital into developments in the south east of England.
It posted a 5.7% rise in first-half adjusted net asset value after strong performance in its retail and London leasing businesses.
Its portfolio includes Bluewater in Kent, Europe’s leading retail and leisure destination, and Westgate in Oxford.
In Scotland it has retained two sites in the centre of Glasgow, having previously sold other assets north of the Border including the Overgate Centre in Dundee.