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The Guernsey-based owners and operators of the Bon Accord shopping centre in Aberdeen, Aberdeen Retail 1 Limited and Aberdeen Retail 2 Limited, have reportedly been placed in administration.
It is reported that the administration has been caused by “unsustainable” cash flow problems stemming from the on-going impact of the Covid-19 pandemic, rising operational costs, and intense retail competition.
Azets, the firm appointed as the administrator, will be managing the situation to ensure that the centre continued its trade on a ‘business as usual’ basis whilst working with agents to market the assets for onward sale.
In addition, specialist commercial property agent, Cushman and Wakefield, has been appointed by the joint administrators to prepare sales particulars and manage the sales process. All centre management employees are said to be retained following the appointment of the administrators.
The Bon Accord Shopping Centre, which was built in 1990, extends to two main buildings on George Street and Union Street and extend to 460,000 sq. ft of retail space with 72 retail units over three floors and 1,400 car parking spaces in two owner-operated car parks to the north and south sides of the centre.
Additional period buildings on George Street, Upper Kirkgate, Loch Street and Gallowgate provide a further 90,000 sq. ft of retail and ancillary space, 6,300 sq. ft of offices, residential units and the listed Students Union building.
The average annual footfall to the Bon Accord Shopping Centre pre-Covid was 15 million visitors.
James Fennessey, restructuring partner at Azets, said: “The Bon Accord Shopping Centre and the St Nicholas Centre, which merged with Bon Accord in 2020, are long-established and retail centres with a very strong brand name and awareness across the North of Scotland.
“The contribution of the Bon Accord to the economy of the North-East is significant and the centre is as much a social hub and focal point for the city as it is a retail centre. We will now quickly stabilise the trading position and wish to reassure tenants, shoppers and stakeholders that it is very much business as usual.”
He added: “Interested parties are asked to contact the selling agents, Cushman and Wakefield, as soon as possible as we are keen to try and find a buyer promptly.”
