The Bon Accord shopping centre in Aberdeen has been sold in a multi-million-pound deal.
The city centre retail destination has been bought by a sibling of the billionaire Issa brothers.
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.
The value of the sale has not been confirmed.
The Press & Journal previously revealed talks were ongoing with Mr Issa to secure a deal worth less than £10m.
This would wipe out the equity and most of the senior debt held against the asset.
The centre, which was owned and operated by two Guernsey-based companies, Aberdeen Retail 1 and Aberdeen Retail 2, crashed into administration last August.
Joint administrators at accountants and business advisors Azets said the collapse was due to “unsustainable cash flow problems stemming from the ongoing impact of the Covid pandemic, rising operational costs and intense retail competition”.
A spokesman for Blackburn-headquartered EP Properties confirmed the company now owns the Bon Accord Centre but was unable to provide any further information on the sale.
Bon Accord deal
Mr Issa’s company, EP Properties, has a commercial property portfolio across the UK, with the only other Scottish site being Blantyre Industrial Estate near Glasgow.
The company’s website says it is a UK-based investment company which specialises in acquiring, letting and selling commercial property.
EP Property’s plans for the Bon Accord are unknown.
His brothers have an estimated fortune of £4.73 billion, according to the 2022 Sunday Times Rich List.
EG Group completed the buyout of Asda in 2020, with the backing of TDR Capital.
History of the mall
The Bon Accord 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 accommodation, with 72 units over three floors, as well as 1,400 car parking spaces in two locations to the north and south of the centre.
Additional 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 mall was previously owned by Sevket Sabanci, the Turkish billionaire behind Esas Holding, the majority shareholder of low-cost carrier Pegasus Airlines.
He had added the shopping centre to his business empire nearly 10 years ago. Mr Sabanci died in July 2021, aged 85.
The Bon Accord Centre has been contacted for comment.
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