UK's Hammerson and Canada Pension Plan buys Scottish mall for $476 million

European property developer Hammerson Plc and Canada Pension Plan Investment Board (CPPIB) jointly bought the second-largest Scottish mall Silverburn for £297 million ($476 million).

The 50:50 joint venture acquired Retail Property Holdings Limited which owns Silverburn, the prime regional shopping center near Glasgow, from Elementary Property Company Limited. The seller went into receivership in July, a statement released by Hammerson said yesterday.

Siverburn was opened in 2007 and its retailers include prominent names such as Debenhams Plc, Marks & Spencer Group Plc, Next Plc, New Look, Tesco Extra etc. The mall attracts around 14 million customers annually.

Rental income from Silverburn's 93,000 square metre (sq m) property is about $30 million annually, representing an initial yield of approximately 6 per cent.

The acquisition also includes 69,000sq m of adjacent development land and also provision for extending the center by around 9,300sq m.

London-based Hammerson is a leading real estate company operating in the UK and France.