London-based private equity real estate manager Henderson Park has exchanged contracts for the acquisition of Silverburn, the 100,000m² flagship shopping centre on the south side of Glasgow from a joint venture between Hammerson and Canada Pension Plan Investment Board for £140 million.

The acquisition has been undertaken with Eurofund Group, who will act as Henderson Park’s operating partner.

Henderson Park MD Christophe Kuhbier said: “Silverburn with its large catchment area close to one of the U.K.’s largest cities has limited direct competition and posted robust footfall levels and cash collection this year.

“With retail valuations under pressure in recent years, we have been monitoring the UK prime retail market and we see here an excellent opportunity to acquire this asset off-market and invest in a modern asset with immediate upside potential.

“Alongside our specialist operating partner Eurofund, our asset management plan aims at attracting new occupiers that focus on leisure, food and beverage and experiential retail sectors, completing the repositioning of the asset as a premier retail and leisure destination.

“We look forward to investing targeted capital expenditure to maximise the potential of this asset and delivering strong returns to our investors.”

Eurofund Group chairman Ian Sandford said: “We are excited by this opportunity to unlock latent value from this exceptional Top 20 UK shopping centre asset which has to date been underperforming. 

“We aim to use our team’s asset management and operational expertise to bring the shopping resort concept and return Silverburn to the offering and performance levels the people of Glasgow deserve and to help it exceed its potential. 

“Glasgow’s profile in the UK was highlighted recently as it was selected as the host city for climate change summit COP26.

“Furthermore, international brands have expanded their footprint in Scotland at Silverburn, most recently Tommy Hilfiger — demonstrating the attractiveness of the flagship destination globally.”