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