A shopping mall in Scotland, located near Edinburgh, was sold at auction for just 310,000 pounds ($403,000) – a quarter less than the cost of the average London apartment.
The price of the mall is also barely double what the shopping center currently makes in rent, amounting to a yield of nearly 50 percent for the buyer, according to Bloomberg.
A fund managed by Columbia Threadneedle Investments put the Postings Shopping Centre in Kirkcaldy, Scotland up for sale with a guide price of one pound.
Brick-and-mortar locations in the U.K. have been hurt by the rapid growth of online retailers like Amazon, which now makes up about one in five pounds spent by shoppers in the country. Just last month, it was reported that retailers in the U.K. had their worst performance during the holidays since December 2008.
“Squeezed consumers chose not to splash out this Christmas, with retail sales growth stalling for the first time in 28 months,” said Helen Dickinson, BRC chief executive, in a report.
In addition, tax increases on brick-and-mortar stores, as well as a boost to the minimum wage and the rising cost of imports since Brexit, have also hurt traditional retailers. As a result, many older shopping centers are being offered for sale to developers, who will then convert them into homes, distribution facilities and other uses.
At the Postings Shopping Centre, only 13 of its 21 stores are occupied, with leases that are due to expire in the next two years. The auction for the shopping center attracted about 100 interested parties, said George Walker, a partner at Allsop. The buyer, an investor from the north of England, was bidding by telephone and preferred not to be identified.
A spokesperson for Columbia Threadneedle said the firm is “pleased that The Postings has moved on to a new owner.”