Terrace Hill Group PLC announces that it has completed the delivery of two pre-let and pre-sold foodstore developments in the North East of England; in Sunderland and in Sedgefield.
The Sunderland development is a £35 million (approx.€41.4 million), 97,729 ft² (approx. 9,080 m²) supermarket, with six pump petrol filling station and 517 parking spaces, which was pre-let to Sainsbury’s on a 25-year lease. Following completion of the store, ownership was transferred to Osprey Supermarket Income and Growth 1 LP, a private investor fund arranged by Osprey Equity Partners, which entered into a forward funding acquisition agreement with the Group for the development in April 2012.
The Sedgefield development is a 50,000 ft² (approx. 4,650 m²) supermarket with 322 parking spaces, which was also pre-let to Sainsbury’s on a 25-year lease, and pre-sold to The Eyre Estate Investment Fund for £16.1 million in September 2012.
Upon completion and delivery of both these developments the Group received the final payments from the respective purchasers.
Additionally, Terrace Hill is also due to complete its 41,800 ft² (approx. 3,880 m²) foodstore development in Skelton on 10th June 2013 which has been pre-sold to Asda as owner occupier.
Terrace Hill has a strong pipeline of future foodstore developments; with four currently being worked through the planning process.
Philip Leech, Chief Executive at Terrace Hill, commented: “We are very pleased to have completed these new foodstore projects which form part of our ongoing development programme in this sector. Despite recent commentary about the slowdown in the growth of the large foodstore market, we are experiencing good demand from retailers for the right type of store in the right location. Our close relationships with the retailers and our expertise in sourcing sites and obtaining planning means that our pipeline of foodstore development projects is continuing to progress well.”
Source: FTI Consulting