Milngavie: Aldi and Home Bargain stores sold for £11.7m

The company planning a major new development at West Retail Park in Milngavie have sold off their Aldi and Home Bargains stores there for a cool £11.7 million

Magell Ltd, whose proposals for the retail park include a drive-through restaurant, have sold the two units to First World Hybrid Real Estate (FWHRE) an Isle of Man-regulated property fund.

The units are let to Aldi and Home Bargains until June 2039 and June 2034 respectively.

Magell acquired both stores in September 2020 on a freehold basis for just under £10.7m. The site totals 36,500 sq ft.

Aldi and Home Bargains units have been sold for £11.7 million

Magell, who also own the ground at the retail park occupied by Arnold Clark until the car dealership’s lease ran out a few weeks ago, brought forward proposals last year to redevelop this area.

The firm, based in Northern Ireland, lodged a proposal of application notice to East Dunbartonshire Council in June 2021.

Virtual public consultation events were held online by the property firm in August for their plans to redevelop the site into a “Class 1 Retail Development and drive-through Class 3 food and drink unit, together with associated car park”.

Then, the firm told the Milngavie & Bearsden Herald that they were exploring options over exactly who would occupy the site and would like to hear the views of the local community.

Both Costa and KFC have been mentioned as possible occupants of the drive-through restaurant. Last week, the Milngavie Herald reported how KFC has its sights set on moving in to the area.

However, Scottish Green MSP Ross Greer, who lives in Bearsden, called on East Dunbartonshire Council to reject any development plan for a drive-through at West Retail Park on the grounds that it would encourage car usage on the already congested Milngavie Road and move business away from Milngavie town centre.

Last week, East Dunbartonshire Council Depute Chief Executive Ann Davie said the most recent submission from Magell was the proposal of application notice. She added that the application “does not specify any potential occupiers and this would not need to form part of any planning submission.”

A spokesperson for Lismore Real Estate, who advised FWHRE on the purchase of the Aldi and Home Bargain units, said that over the past 24 months, both supermarket and discount retail assets have been highly sought after, with investors attracted by the retailers resilient trading performances and the long leases that characterise that sector.

A spokesperson for Magell said on Wednesday there were no specific up to date details at the moment on the proposed occupants of the former Arnold Clark site but that the company still planned to redevelop the area.