Property funds play Monopoly in East Kilbride

British Land and Land Securities have paid£60 million to cement their dominance over retailing in East Kilbride, Scotland. Their joint venture, the Scottish Retail Property Limited Partnership, has bought out two other landlords to give it control over 1.2 million sq ft (111,480 sq m) of retail in the town.

The 87,770 sq ft (8,155 sq m) Princes Square was bought from the Prudential for£37.3 million, showing an equivalent yield of about 6 per cent. Built in 1997, the centre comprises 34 units, with New Look and Sports Soccer as anchors.

Meanwhile, the 45,845 sq ft (4,260 sq m) Southgate scheme has been bought from Scottish Mutual Assurance for£24.5 million reflecting an initial yield of 5.18 per cent. The site provides 14 units, including a Carlton Club bingo hall.

The partnership was formed last year when British Land and Land Securities agreed to pool their holdings in the Centre West, Plaza Centre and Princes Mall developments. British Land director Merrick Marshall said: 'It made good strategic sense to acquire the adjoining holdings. Through one ownership, we can take this once-in-a-generation opportunity to unlock the real, sustainable potential of East Kilbride as the dominant retail centre for south Glasgow.'

Donaldsons acted for the Scottish Retail Property Limited Partnership. Prudential Property Investment Managers represented Prudential. Abbey National Asset Managers and Montagu Evans advised Scottish Mutual Assurance.