Wirefox nearing £57m deal for Ocean Terminal in Edinburgh

Wirefox, a Northern Irish investment company acting on behalf of Hong Kong equity, is under offer to buy Ocean Terminal shopping centre in Edinburgh for around £57m, Property Week understands.

Resolution Property bought the 420,000 sq ft asset in 2012 for around £90m, and put it up for sale more than a year ago with a price tag of £85m. Since then, a number of deals to buy the property have fallen through at various prices, and the owners went back out to the market in March seeking offers of around £55m.

Wirefox is now closing in on a £57m deal after several parties tabled bids. The price represents a yield of around 8%.

The investment firm is representing the same Hong Kong group that the firm partnered with to buy Silvan House earlier this week, paying £18m for the 90,000 sq ft office asset, which is let to a number of government departments.

Ocean Terminal, situated in Leith to the north of the city, is around 85% let. The scheme is anchored by Debenhams, which has a 100,000 sq ft store, along with a 22,000 sq ft H&M and M&S Simply Food.

‘It’s had a few challenges’

It houses a 12-screen Vue cinema, a Pure Gym, a number of restaurants, and the visitors centre for the Royal Yacht Britannia, which is docked alongside the centre. Resolution also has provisional planning consent for a 230-bed hotel on the site.

BHS had a 26,000 sq ft anchor store until the retailer went bust, and the owners have not yet been able to fill the vacant unit.

“It’s had a few challenges,” one market expert said. “It’s having to compete with Fort Kinnaird, which is the second largest retail park in the UK, and it’s also in a bit of a battle with the St James Centre, which is in its pre-letting stage.

“Undoubtedly it’s got its own position in the market , and it has some good anchors. But it’s a site that could definitely benefit from some development on its doorstep.”

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