Rockspring Property Investment Managers announces that it is funding the development of a supermarket in Milton Keynes for £12.27 million (approx. €14.4 million), reflecting a net initial yield of 5.1%, on behalf of a separate account mandate. Frontier Estates is Rockspring’s development partner for the project.
Pre-let to Sainsbury’s on a 25 year lease, the scheme, which is due to be completed in Spring 2014, is located at Shenley Church End in Milton Keynes, and will provide 38,000 ft² (approx. 3,530 m²) of retail space and 238 car parking spaces. Construction is due to commence on the site imminently.
Phil Sturdy, Rockspring European Director, said:
“The development of the site at Shenley Church End is in line with our strategy of creating value through funding developments at a discount to standing investments. Once developed, the supermarket will provide a 25 year indexed income stream from Sainsbury’s.”
Damian Wood, Frontier Estates Director, said:
“We are delighted to have agreed a deal with Rockspring to forward fund this food store development in Milton Keynes. Frontier are continuing its expansion in the food store sector and are working on a number of opportunities with Sainsbury’s, ASDA, Morrisions, Tesco and Waitrose”
Rockspring was advised by Douglas Stevens. Frontier Estates was advised by Warneford.
Source: FTI Consulting