Edinburgh retail park that hosts McDonald’s, Lidl and Pets at Home sold in major £16.3 million deal

An Edinburgh retail park that is home to McDonald’s, Lidl and Pets at Home has changed hands in a £16.3 million deal.

Lothian Pension Fund has acquired Corstorphine Retail Park in the west of the city from Hunter Real Estate Investment Management. The park has recently undergone “extensive redevelopment” with new lettings secured to Lidl and Gym Group, with further lease re-gears to McDonald’s, Pets at Home and Cancer Research, giving an average lease length in excess of 18 years. Lothian Pension Fund was advised by Lismore Real Estate Advisors, Hunter was advised by Sheridan Keane.

Chris Macfarlane, director of Lismore, said: “Towards the end of 2022 and into this year we have seen retail warehousing yields soften, but those parks anchored by food stores and also with an element of drive-thru, located in strong urban catchments, remain robust and still offer good value.”

Lismore was founded in March 2020 to provide market advice, delivered by an experienced team of directors working within the investment and development market in Scotland. The firm recently predicted a more liquid Scottish investment market in 2023 with the high street retail sector tipped as a potential “dark horse”.

Releasing its latest quarterly review, Lismore Real Estate Advisors said its research indicated that a significant majority (65 per cent) of respondents expect to be net buyers in 2023, with only 12 per cent expecting to be sellers. Buying activity is likely to be from quarter two onwards, with the first few months of 2023 expected to see limited new stock on the market.