Guernsey Owners Face Unsustainable Cash Flow Issues
- Bon Accord shopping centre owners placed in administration
- Covid-19 pandemic, rising operational costs, and intense retail competition cause administration
- Azets appointed as administrator to manage situation on a ‘business as usual’ basis
- Cushman and Wakefield appointed to prepare sales particulars and manage sales process
- All centre management employees retained
- Bon Accord Shopping Centre has 460,000 sq. ft of retail space and 1,400 car parking spaces
- Average annual footfall pre-Covid was 15 million visitors
- Centre is a significant contributor to the North-East economy and social hub
The Guernsey-based owners of Aberdeen’s Bon Accord Shopping Centre, Aberdeen Retail 1 Limited and Aberdeen Retail 2 Limited, have been placed in administration due to unsustainable cash flow problems caused by the ongoing impact of Covid-19 pandemic, rising operational costs, and intense retail competition. Azets has been appointed as administrator to manage the situation on a ‘business as usual’ basis while working with agents Cushman and Wakefield to market assets for sale. Cushman and Wakefield will prepare sales particulars and manage the sales process. All centre management employees are retained. The Bon Accord, built in 1990, spans two main buildings on George Street and Union Street, offering 460,000 sq. ft of retail space across three floors and 1,400 car parking spaces in two owner-operated car parks. Additional period buildings provide an extra 90,000 sq. ft of retail and ancillary space, 6,300 sq. ft of offices, residential units, and a listed Students Union building. Pre-Covid, the centre saw an average annual footfall of 15 million visitors. Azets’ James Fennessey says the centre is a significant contributor to the North-East economy and a social hub for the city.
Factuality Level: 10
Factuality Justification: The article provides accurate information about the administration of the Bon Accord shopping centre, its owners, the reasons behind it, and the steps being taken by the administrator and selling agents to manage the situation. It also includes relevant details about the centre’s size, location, and history.
Noise Level: 3
Noise Justification: The article provides relevant information about the administration of the Bon Accord shopping centre due to Covid-19 pandemic impact and other factors like rising operational costs and intense retail competition. It also mentions the appointment of administrators and agents for managing the situation and selling process. The article stays on topic without diving into unrelated territories, supports its claims with information about the centre’s size and footfall, and provides some insights from the restructuring partner at Azets. However, it lacks in-depth analysis or exploration of long-term trends or possibilities, accountability, and actionable solutions.
Financial Relevance: Yes
Financial Markets Impacted: The administration of Aberdeen Retail 1 Limited and Aberdeen Retail 2 Limited impacts the retail property market in Guernsey and potentially affects the value of their assets, including the Bon Accord Shopping Centre.
Financial Rating Justification: This article discusses the financial difficulties faced by the owners and operators of a shopping centre due to the Covid-19 pandemic, which has led to their administration. The sale of the assets is expected to impact the retail property market in Guernsey and potentially affect the value of the company’s assets, making it financially relevant.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article
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