Glenrothes shopping centre in £250m sell off

Kingdom Centre, Glenrothes
Kingdom Centre, Glenrothes

The Kingdom Centre could soon have a new owner after it was put up for sale as part of a £250 million portfolio.

Current owners Mars Pension Funds, which purchased the mall for £34.3 million 20 months ago, have instructed Lasalle Investment Management - the company which looks after the property - to market the centre along with six others in an investment package.

Along with Glenrothes, bought in September 2013, the portfolio includes Ankerside Centre in Tamworth purchased for £14.45m, the Exchange Shopping Centre, Rochdale purchased for £19m, Westside Plaza in Edinburgh, The Pyramids shopping centre in Birkenhead, the Captain Cook Square centre in Middlesborough and the Airedale Centre in Keigthley in West Yorkshire.

The joint venture partnership between Edinburgh House Group and Cerberus Capital Management, which already owns a number of secondary shopping malls across the UK, is understood to have made an offer which includes Glenrothes.

Two other interested parties thought to be currently considering the sale are Apollo and M&M.

Market analysts are predicting an approximate seven per cent yield on the Mars investment which assembled the portfolio in the wake of a retail downturn.

Glenrothes councillor Ross Vettraino, new vice-chairman of the town’s area committee, said he was surprised by the move.

“Maybe the owners have made a reassessment of their plans to regenerate the centre and decided they are not attainable,” said Cllr Vettraino.

“They made all the noises about their purchase being a long-term investment but that seems to have changed.

“I welcome interest shown by a potential new owner, and hope it will bring about some confidence and stability.”

The latest twist in a decade-long saga

The Kingdom Shopping Centre sale is the latest twist in a decade-long saga regarding the regeneration of Glenrothes town centre.

In December 2013 Tesco Ltd scrapped plans to build a new supermarket in the town, a development that many thought would be the catalyst for a a re-shaping of the town’s principal shopping area.

In February, Simon Usher from LaSalle Investment Management told those who attended the Futures Group AGM that they remained committed to the long-term development of the shopping centre as well as seeking to unlock the potential of the Albany Gate area of the town.

Mr Usher was unavailable for comment at the time of writing.