Acting on behalf of clients Ediston Real Estate and Strathclyde Pension Fund the Capital Markets team at Reith Lambert advised on the acquisition of two assets in Glasgow’s Merchant City for the Clydebuilt Fund.
Merchant Square and four other bar and restaurant units on the city’s Candleriggs have been acquired from Merchant City Properties for a combined price of £9,500,000, reflecting a net initial yield of 9%.
Merchant Square is a multi-let leisure destination based in a covered former merchants’ market in the heart of the Merchant City district. Housed in part of Glasgow’s Old Fruitmarket, which dates back to the 1800s, it was redeveloped in 1999 and comprises four bars, three restaurants, two bar/ restaurants and two nightclubs, which on the ground floor are arranged around a central courtyard. The indoor venue has become one of the most stylish destinations in the city for eating, drinking and entertainment.
The other bar / restaurant premises are Khublai Khan’s, Guy’s, Merchant Pride and Wild Cabaret.
The new owners believe the asset offers a good income stream but also opportunities to enhance it and improve the tenant line up through value-add asset management initiatives and bringing currently redundant space back into use.
The bar and restaurant units on Candleriggs are let on long leases and are a central part of the ever popular Merchant City leisure circuit. The immediate vicinity will see further investment and regeneration in the short to medium term which is expected to benefit the property.