A MAJOR shopping centre in a UK city has been put up for sale for millions.
The retail hub has been listed on the market for the first time since 2015, for significantly less than for what it last sold for.
Eastgate Shopping Centre in Scotland’s Inverness first opened back in 1983 and has been sold three times before.
It’s now been put up for sale for a fourth time, with estate agent Knight Frank confirming that is on the market and up for grabs.
The 410,000 sq ft shopping mall is home to dozens of chains and independent retailers, as well as food outlets, banks, charities and a performing arts school.
Boots, New Look, FatFace, H&M, M&S, Next, Starbucks, Pizza Express, Burger King and Subway are among the businesses located in the shopping centre, set across two floors.
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A guide price of £18.5million has been issued for the listing – a huge price drop compared to its last sale in 2015.
It was purchased for £116million Harbert Fund Management and Scoop Asset Management 11 years ago, marking a £98million reduction.
Eastgate has been described as playing a “significant role” within the city’s community and it’s thought the site will be seen as an “attractive opportunity” for investors.
Mark Hewett, asset manager for Eastgate’s owner, said: “We are pleased to bring Eastgate Shopping Centre to the market and believe it represents an attractive opportunity for investors. The centre benefits from a strong position within its catchment, an established occupier base and a significant role within the local community.
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Whilst we commence this process, it remains very much business as usual for our occupiers, customers and staff, and we remain fully committed to supporting the successful operation of the centre,” he added.
Meanwhile, experts have pointed out that the drastic reduction in the shopping centre’s value reflects a wider issue impacting the retail sector across the UK.
Professor Cathy Parker is part of the UK government’s high street task force and explains that the drop in price does not necessarily mean bad news for Inverness.
“It’s a big reduction in Eastgate’s value, but it reflects a much wider repricing of traditional retail property following the growth of online shopping, changing occupier demand, and the loss of department-store anchors such as Debenhams,” she told the BBC.
“It doesn’t mean Inverness is declining – just adapting.”