Capital & Regional raises £25m for Edinburgh shopping centre purchase

25th August 2023 | Jack Oliver

Capital & Regional has raised £25m from shareholders to help fund its purchase of The Gyle Shopping Centre in Edinburgh.

The real estate investment trust (REIT) purchased the scheme for a total consideration of £40m, with the remainder of the transaction financed through existing funds and a new debt facility of £16m.

Of the £25m fundraising, 12.6% was supplied by minority shareholders, whilst the company’s largest shareholder Growthpoint provided the remainder of the funding.

Following the admission of the open offer shares, Growthpoint now has a 67.64% holding in the REIT.

Spanning 415,000 sq ft, The Gyle comprises 88 retail units and is anchored by Morrisons supermarket and a Marks & Spencer store.

The scheme has 2,800 free car parking spaces and is well connected via the tram system with good links to Edinburgh Airport.

Capital & Regional said The Gyle’s retail space is let at approximately £6.8 million of annual gross rent and around £5.77 million of net rental income, with strong rent collection and a headline occupancy of 94%.

At the time of the acquisition, Lawrence Hutchings, chief executive of Capital & Regional, said: “The Gyle Shopping Centre presents us with a number of asset management opportunities including refining the tenant mix, a renewed focus on leasing to improve occupancy and income, whilst enhancing the centre’s appeal to the growing and affluent catchment in south western Edinburgh.” 


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