UK shopping centre that faced store closures to be transformed with £15m deal agreed | UK | News
A big transformation is on the way for one of Scotland’s best-known shopping centres (Image: Google Maps)
A big transformation is on the way for one of Scotland’s best-known shopping centres after it was acquired in a £15million deal. Ocean Terminal in Leith, Edinburgh, has been sold to US investment firm Fortress in a purchase reported to be “just north of £15million”, below its previously reported £18million market value. Fortress is majority-owned by the UAE investment company Mubadala.
Just like many other shopping centres, the waterfront complex has experienced a challenging few years and seen several major stores close. Once anchored by Debenhams and a Marks & Spencer food hall, the centre has undergone large-scale changes, including the demolition of the Debenhams building and its multi-storey car park.
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Ocean Terminal in Leith, Edinburgh, has been sold to US investment firm Fortress (Image: Google Maps)
M&S also moved out, leaving behind tenants such as Boots, Nando’s, H&M, Pizza Express and Vue Cinema.
Despite this, the site still employs more than 625 people and remains home to the Royal Yacht Britannia, which agreed a new 25-year lease last year and has recently opened a new exhibition space and shop within the centre.
The sale to Fortress does not include the development site next to the shopping centre, where more than 500 new homes are planned.
That separate residential project, which already has planning consent, continues to be marketed by JLL and is expected to be handled by another developer.
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The centre sits at the heart of a wider £250million redevelopment of the waterfront (Image: Ocean Terminal)
According to reports, negotiations with a different buyer for the 531-home scheme are ongoing.
Ocean Terminal, which first opened in 2001, now spans around 277,000 square feet following the removal of roughly a third of the building during a £16.75million remodelling programme.
It currently includes three floors of leisure, hospitality and retail space, complete with on-site parking and access to the city’s cycle network.
It is also set to become one of key tram stops on Edinburgh’s new Newhaven line.
The centre sits at the heart of a wider £250million redevelopment of the waterfront, with plans for new public spaces, commercial units and hundreds of homes.
Industry sources say the acquisition shows confidence in Ocean Terminal’s long-term potential, even after years of retail decline across the UK shopping sector.
Real estate advisers JLL handled the sale on behalf of previous owners ICG, although all parties declined to comment publicly on the transaction.
