A retail park on the site of a historic Scottish textiles plant has been sold for around £7.9 million to the operator of the onsite Starbucks franchise.
Paton’s Mill Retail Park, on the edge of Johnstone in Renfrewshire, has been acquired by OCO Group from Knight Frank Investment Management Long Income Property Unit Trust.
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Property consultancy Knight Frank said the deal was “in line with the asking price”, and flagged the resilience of retail parks against a tough backdrop.
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Knight Frank Investment Management Long Income Property Unit Trust forward-funded the original development in 2018 on the site of the former Paton’s Mill, which Knight Frank described as a historic textile plant.
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The park consists of two retail warehousing units of 17,150 sq ft and 15,286 sq ft, which are let on long-term leases to Aldi and Home Bargains, respectively, alongside the 2,222 sq ft drive-through unit currently occupied by OCO.
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John Rae, capital markets partner and head of Knight Frank Glasgow, said: “Having funded the original development, this is a successful exit for KFIM LIPUT. Retail parks have been resilient throughout the challenges faced by the wider sector in recent years, which is reflected in the price for Paton’s Mill."
He added: “The park has strong occupiers with long-term commitments and a relatively captive market nearby. The fact that the park was purchased by one of the occupiers is testament to the success of the development and the strong trading performance of the tenants since it opened around five years ago.”
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