Saturday, September 12, 2009
Testing the commercial property market
A shopping centre that was valued at Â£350 million when it opened at the height of the commercial property boom and is home to Scotlandâ€™s largest Marks & Spencer store has been put up for sale after the company behind the development went into receivership. The sale of the Silverburn shopping centre, near Glasgow, is the biggest of its kind this year. However, steep falls in the value of retail property mean that bids are expected to come in between Â£200 million and Â£250 million â€” much lower than the centreâ€™s value in October, 2007. Banks have so far been reluctant to sell off assets where the owners have had trouble with their debts because of the losses they would face after the average fall in commercial property values of 45 per cent from the peak.