KNIGHTSBRIDGE House Estates (KHE), an associated company of the Bearmont Group, has announced a significant expansion of its high-street retail portfolio. Following the successful sale of the Poundland unit in Llandudno earlier this summer, the Welsh property developer has embarked on a strategic growth initiative, culminating in the acquisition of 8 former M&Co shop units across England and Scotland..
This portfolio deal includes 7 units in Scotland and one in England, marking a substantial step forward in KHE’s retail endeavours. M&Co entered administration in December last year and announced shortly after that, all stores were due to close. The eight stores have been vacant since January 2023.
Back-to-back lettings have been secured by KHE across all properties, in locations including Inverness and Ashbourne, to Lancashire-based – The Original Factory Shop.
Maria Lloyd, Managing Director of Knightsbridge House Estates, said: “The acquisition of these vacant shop units represents a major development in Knightsbridge House Estates growth. We maintain close relationships with numerous retailers, which provides us with insights into their expansion plans. All 8 units have already been pre-let to The Original Factory Shops (TOFS), a fantastic achievement that underscores the attractiveness of these prime retail spaces. With TOFS set to occupy these units, all locations are expected to be fully operational and open to the public in time for Christmas.”
This move isn’t Knightsbridge House Estates’ first venture in Scotland, as the company previously held ownership of the former Burtons shop in Elgin, a highland town in Scotland.
Douglas Binnie, capital markets partner at Knight Frank Glasgow, said: “This deal for the former M&Co units shows there is still strong investor demand for well-located regional retail assets, despite the well-publicised challenges the sector has faced in recent years. The lease agreements to The Original Factory Store also demonstrate the depth of occupier demand for these types of units – particularly where there is a captive local market.”
Kevin Sims, Director at Sims Property, added: “We are delighted to have finalised the deal with KHE and Bearmont Group for this portfolio sale and help facilitate the company’s first major foray into the Scottish market. Rob was excellent to deal with and a key driver in getting the deal over the line within a short timescale, we hope this is the first of many deals to come in Scotland.”
