Scottish £1 Shopping Centre Auctioned for £310,000

A Scottish shopping centre sold at auction for £310,000 on Tuesday after being placed on sale with a reserve price of £1, as a tough retail climate cuts into property values, the Financial Times reported. The Postings shopping centre in Kirkcaldy was sold by the asset manager Columbia Threadneedle, which set the low reserve price because the centre — which has several vacant units — currently costs more to run than it earns in rent. The centre, built in the 1980s, most recently changed hands for £10.3m in 2003, according to Estates Gazette. The sale came as retailers’ struggle to remain solvent rebounds on landlords. A series of large retailers have entered insolvency arrangements in the past year as they struggled with the transition to online sales, higher costs and faltering consumer confidence. Others, including Marks and Spencer, have announced programmes of store closures. A branch of M&S in Kirkcaldy, though not in The Postings centre, closed on Tuesday after 81 years. Auctioneers Allsop said they could not yet reveal the identity of the buyer of The Postings, but said several potential purchasers had placed bids. Read more