Life sciences property developer and operator Pioneer Group is close to sealing a deal to buy a former Debenhams department store in Oxford city centre.
The deal is worth upwards of £30m, according to market sources, and features a newly-created 175-year long-leasehold interest, with an annual 7.5% gearing on the contracted rent.
Located at 1-12 Magdalen Street, the 126,005 sq ft, three-storey store was marketed with scope for redevelopment into a urban research and development facility, with the ground floor and basement retained for retail use.
The building is owned by DTZ Investors, which acts on behalf of Strathclyde Pension Fund. Glasgow City Council is acting as an administering authority for Strathclyde Pension Fund.
Savills was appointed last year to market the long leasehold as a development opportunity. Oxford’s Debenhams store closed in 2021 after the retailer went into administration in the previous year.
The move comes amid high occupier demand in Oxford and limited city centre supply for both laboratory and office space.
It will be the third shopping mall redevelopment project in Pioneer Group’s portfolio alongside Victoria House in London and Grafton Centre in Cambridge.
The development sits on the corner of George Street and Magdalen Street, providing access to the soon-to-be-developed Clarendon Centre, historic covered market and the high street.
All parties declined to comment.
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