Helical Bar’s joint venture with Abbeygate Developments has completed the forward funding of their retail and leisure scheme, Leisure Plaza, Milton Keynes, with Aviva Investors’ Lime Property Fund for circa £40 million (approx. €46.5 million). The transaction reflects a headline yield of 4.25%.
Under terms of the transaction, the JV will re-develop the entire Leisure Plaza scheme to provide an 80,000 ft² (approx. 7,432 m²) supermarket, which has been pre-let to Morrisons on a long lease. The scheme also includes a refurbished ice rink facility and a site with Open A1 planning consent for two retail warehouse units, totaling 33,000 ft² (approx. 3,065 m²). The supermarket is due to be completed in August 2014.
In addition, Helical has sold its long leasehold interest in the Asda supermarket at its Clydebank shopping center to Aviva Investors for £12.15 million, reflecting an initial yield of 5.15%.
Jack Pitman, Investment Director at Helical Bar said: “Both these transactions are a clear illustration of our strategy of creating institutional grade product through asset management and then releasing our equity so that we can recycle the proceeds into new opportunities.”
Commenting on the forward funding Renos Booth, Fund Manager Aviva Investors’ Lime Property Fund, said: “We are delighted to have secured this very attractive investment, let on a long lease to Morrisons, in a highly competitive market for long secure income product like this. We very much look forward to building on the long-standing relationship between Helical Bar and Aviva Investors, and to work in partnership with them to deliver this building.“
In both transactions Wilkinson Williams advised Helical Bar and Abbeygate Developments and Strutt and Parker advised Aviva Investors.
Source: Helical Bar
