26th Oct 2009 07:00
26 October 2009
TERRACE HILL GROUP PLC
("Terrace Hill" or the "Company")
Completion of £27.67 Million Forward Funding Agreement at Bishop Auckland
Terrace Hill Group plc (AIM: THG), a leading UK property development and investment group, announces that it has completed a forward funding agreement with Aviva Investors Pensions Limited for the development and sale of the 92,333 sq ft Sainsbury's food store at its retail and leisure scheme at Tindale Crescent, Bishop Auckland, County Durham.
The property has been pre-let to Sainsbury's on a 25 year lease at an initial rent of £18 per square foot (£1,661,994 per annum) and will be sold to Aviva for a total consideration of £27.67 million, reflecting a 5.7% net initial yield. It is anticipated that the Sainsbury's store will commence trading by Christmas 2010, with construction starting in November 2009.
Terrace Hill's leisure and retail park at Tindale Crescent, will also include a new stadium for Bishop Auckland Football Club.
Commenting Philip Leech, Chief Executive of Terrace Hill, said:
"We are delighted that Aviva is investing with us again having funded retail parks with the Group in the past. The price achieved reflects a strong appetite amongst investors for well let food store developments which should enhance the returns we expect from our pipeline of similar projects.
"Today's announcement follows our recent sale to Sainsbury's of a site for a 55,000 sq ft foodstore and petrol station in Helston, Cornwall, and the acquisition, in joint venture, of Heaton Retail Park adjacent to a Sainsbury's store in Manchester."
Robert Walton, Head of UK Institutional Funds - Real Estate, Aviva Investors, said:
"This acquisition marks the return of the Aviva Investors Pooled Property fund to the market as we look to acquire investments in a variety of sectors. We have a good relationship with the developer of the supermarket site, Terrace Hill, having worked with them previously on other projects. We see this funding as an opportunity to invest in a secure, well let investment with guaranteed rental uplift to a strong covenant in a favoured sector."
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For further information:
Terrace Hill www.terracehill.co.uk
Philip Leech, Chief Executive Tel: 020 7631 1666
Duncan McEwan, Retail Director Tel: 01642 878 070
Financial Dynamics Tel: 020 7831 3113
Richard Sunderland/Rachel Drysdale [email protected]
Notes to editors:
Terrace Hill Group PLC
Terrace Hill is an AIM-listed property development and investment group with three key divisions:
Commercial development and investment
Residential investment
Housebuilding.
Formed in 1986, the Company has four offices in London, Glasgow, Teesside and Bristol, managing a commercial development programme, commercial and residential investment portfolios and a housebuilding business in Scotland.Related Shares:
Thg