Construction starts on retail development in South Wales (UK)

Rockspring Property Investment Managers and its development partner, Simons Development, announce that construction has commenced on the first phase of Bargoed Retail Plateau in South Wales.

The £25 million (approx. €31 million) development is a joint venture with Caerphilly County Borough Council (CCBC) and The Welsh Government and has been funded by Rockspring at a net initial yield of 5.9%.

The site will provide 77,000 ft² (approx. 7,000 m²) of retail space comprising a 57,000 ft² supermarket and a petrol filling station, pre-let to Morrisons for 25 years, as well as a further seven retail units, pre-let to Caerphilly County Borough Council for 25 years.

The scheme is due to complete in summer 2013.

Phil Sturdy, Rockspring European Director, said: "The development of The Plateau site at Bargoed is in line with our strategy of creating value through funding developments at a discount to standing investments. Once developed, the Plateau will provide a secure indexed income stream from Morrison's and CCBC."

Graeme Cosgrove, Development Director at Simons, commented: "We are delighted to be off and running with this important development project which is one of a number we are working on with Morrisons.

"Reaching this important milestone has taken a number of years and is testament to the hard work and determination of Simons and our partners Rockspring, CCBC and The Welsh Government. I am sure that this development will be a fantastic success and a catalyst for future development in Bargoed and the surrounding area."

Simons was advised by Savills and Ian Metcalfe and Associates. Rockspring was advised by Jones Lang LaSalle.

Source: FTI Consulting

Related News