Aberdeen Retail 1 and Aberdeen Retail 2, the Guernsey-based owners and operators of the Bon Accord shopping centre in Aberdeen, have been placed into administration.
This has been caused by unsustainable cash flow problems stemming from the on-going impact of the pandemic, as well as rising operational costs and intense retail competition.
The centre, which was built in 1990, extends to two main buildings on George Street and Union Street.
It features 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.
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 range of retail, hospitality and business tenants include national high street retailers, specialist shops, restaurants, cafés and administrative businesses.
It remains ‘business as usual’ while joint administrators at accountancy firm Azets implement a strategy to ensure that the operating companies can continue to trade as the assets are prepared for sale.
Interested parties are encouraged to make contact as soon as possible, with commercial property agents Cushman & Wakefield appointed to prepare sales particulars and manage the process.
All centre management employees are being retained following the appointment of the administrators.
James Fennessey, restructuring partner at Azets, said: “The Bon Accord Shopping Centre and the St Nicholas Centre, which merged with the Bon Accord in 2020, are long-established and retail centres with a very strong brand name and awareness across the North of Scotland.
“They have consistently attracted and retained a wide range of quality retail tenants over the years, and regularly draw hundreds of thousands of visitors every year.
“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.”
Ryan Crighton, policy director at Aberdeen & Grampian Chamber of Commerce, called this a concerning development.
“The Bon Accord Centre has been at the heart of Aberdeen’s retail offering for over 30 years - and that must continue - but if people want a vibrant city centre, this should serve as a clear ‘use it or lose it’ warning.
“After years of regressive policies which have starved our high streets of footfall, we now need innovative solutions to get people back into our city centres to live, work and play.
“That action needs to be swift, decisive and tangible.”
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