Scottish Widows Investment Partnership has agreed to forward fund P&O Developments £200m Drake Circus shopping centre in Plymouth. The redeveloped Drake Circus will comprise 654,450 sq ft of retail space and will be the largest shopping centre in the South West.
The scheme will be anchored by two 120,000 sq ft department stores, already pre-let to Marks & Spencer and Allders. The scheme was awarded planning consent in July 2003 and the centre is expected to open in the autumn of 2006. Drake Circus is expected to make around £12m a year in rent.
Scottish Widows will fund the entire development and will own the freehold on completion. P&O will take the development profits. P&O Director, Ray Knight, confirmed that the company was “in advanced discussions” over funding, but declined to name the potential backer.
Lunson Mitchenall and Chesterton are advising on the deal, and are also letting agents on Drake Circus.
Source: Freeman News / Property Week