The Bon Accord Centre in Aberdeen has been acquired in a multi-million-pound deal – but what does this mean for its future?
Bought by EP Properties the company is taking the leap in to retail with Bon Accord its first shopping mall purchase.
It is believed EP Properties, led by Zakir Issa – brother of EG Group bosses Mohsin and Zuber, who own Asda in a joint venture with TDR Capital – has purchased the mall from administrators for less than £10m.
But what do they intend to do with it?
Everyman Cinema
Plans for a new Everyman Cinema are up in the air with the company confirming its still waiting to find out the future of the centre.
The Press and Journal exclusively revealed last year that Everyman had decided to open its third Scottish venue at the shopping mall with 2024 given as the date.
But a spokesman for Everyman today said: “There’s not a lot we can say. Like you we are waiting to see what the new owners propose to do with the centre.”
Laser tag and ice rink
And it unclear whether proposals for a new “family entertainment centre”, put forward by Bon Accord, will go-ahead.
Plans were previously unveiled for laser tag, an ice rink and dodgems which would fill a space above the second floor of shops, currently occupied by a vast indoor bowling green that has been left unused for more than a decade.
Covering two levels – one of which would be built as part of the plans – the family fun zone would also include a restaurant area and three “party rooms”.
Centre in a ‘prime space’
Someone who may have more insight than most over what might happen next is Robert Gordon University retail expert Andrew Turnbull.
He believes it’s not in EP Properties interests to “run down” the centre if it is looking towards a “profit opportunity” in the future.
He said: “Maybe it’s their intention to move into this area, given the knock down price, and give it a go.
“I note, however, that they ‘buy, sell, and rent’ so selling it on at a higher price, once the centre is back on its feet, could be another option.
“The carrot, of course, is the low asking price, and if they have the expertise to run the centre even short term, then it’s a profit opportunity.
“At face value, it’s neither a good, nor bad, thing for retail in Aberdeen. It’s not in EP’s interests to run it down and fail to invest or at least maintain the offering.
“In the meantime, there are still many well known names amongst the tenants and the centre occupies a prime space in the city centre.
“So, it’s a question of wait and seen what happens and how EP approaches the task.”
Headquartered in Blackburn, England, it describes itself as a company which specialises in acquiring, letting and selling commercial property.
It has a commercial property portfolio across the UK, with the only other Scottish site being Blantyre Industrial Estate near Glasgow.
Is EP buying the old John Lewis building?
Speculation is also mounting over whether EP Properties is set to be the new owner of the former John Lewis building.
The prominent building – known as Norco House – is under offer, after going on the market last year following the closure of John Lewis in 2021.
Estate agent Savills have confirmed the building is under offer but no details have been released confirming the prospective buyer.
If the building can be reused, it is believed its value could be around £5 million.
Appealing prospect for EP
Mr Turnbull believes the John Lewis site would still be an attractive opportunity for retail.
Commenting on a possible purchase by EP Properties he said: “The Bon Accord and the JL commitment, if that’s accurate, demonstrate an intent to move into a new market, acknowledging that it’s an existing area of business i.e. site rental.
“I would anticipate that retail is still the intended direction for the JL site. It’s now a matter of finding appropriate tenants.
“Even if, the upper floors will prove a significantly harder challenge.
“The Aberdeen retail ‘offline’ market place still shows significant potential.
“City centre sites, where there is adjoining parking space, still represent an opportunity and Aberdeen remains attractive in terms of employment statistics, property values, disposable incomes, etc.
“Population size is a restriction, compared to elsewhere, but accessibility is improving, despite the bridge works affecting routes to and from the south, and there are other city centre attractions that are adding to the appeal.
“So, this could represent a useful ‘test market’ to EP. If they are successful, it may lead to expansion elsewhere, if not, then it doesn’t represent too much of a gamble.”
EP Properties have been contacted for comment. Bon Accord Centre has declined to comment.
