WG Mitchell buys up Glasgow's Sauchiehall mall

In Scotland's second-biggest property deal of the year, German investor Internationales Immobilien Institut (III) has sold the freehold interest in the Sauchiehall Centre, Glasgow, to Belfast-based investor WG Mitchell for EUR54 million (£36 million).

The sale reflects a net initial yield of 5.3 per cent and an equivalent yield of slightly more than 6 per cent.

The 200,000 sq ft (18,580 sq m) Sauchiehall Centre occupies an entire city centre block on the south side of Sauchiehall Street, one of Glasgow's strongest retail pitches. Tenants include WHSmith, Primark, TK Maxx, Clinton Cards, Superdrug, JJB Sports and The Royal Bank of Scotland.

III bought the centre only two years ago from Capital & Regional and Stannifer for EUR60 million (£40 million). WG Mitchell was represented by Lisney, and Cushman & Wakefield Healey & Baker acted for the purchaser.

Cushman & Wakefield Healey & Baker partner John Hamilton said III only acquired the investment slightly less than two years ago. 'They are delighted with the result and I am sure it will continue to perform well for the purchaser,' he said.