Sale of Winchester foodstore scheme for 23.3GBP

27th March 2014

Development Securities sells retail scheme in Winchester for £23.3 million following lease regear with anchor tenant, Waitrose

Development Securities today announces the sale of the Weeke local shopping centre in Winchester, anchored by a Waitrose foodstore, for £23.3 million to AMEC Staff Pensions Trustee Limited at a 4.85% yield and at £1.4 million in excess of book value as at 28th February 2013. The sale follows the regear of Waitrose's lease, extending it to 35 years subject to 5 yearly RPI-linked rent reviews. Concurrently, at the Kingsland Shopping Centre in Thatcham, another retail scheme within Development Securities' investment portfolio, a regear has also been agreed with Waitrose to extend its lease by 10 years at its 42,000 sq. ft. foodstore that anchors the development.

Located in a popular residential area, the site in Winchester was acquired by Development Securities in 2006 containing a disused petrol station and car showroom. Planning consent was subsequently secured to redevelop the site and create a mixed-use development that includes a 33,000 sq. ft. foodstore, additional retail units, a medical centre and four residential apartments. The foodstore was pre-let to Waitrose on a 20-year lease and the retail units were pre-let to national brands including Costa and Boots. In 2009 the development was completed, and the centre continues to trade as a thriving retail destination.

Matthew Weiner, Development Securities said: "We first acquired Weeke shopping centre as a redundant site and through redevelopment and asset enhancement have delivered a popular local retail scheme that benefits from a strong anchor tenant and a good complementary retail mix. Our ongoing asset management activities have driven significant value growth, most recently with the regear to Waitrose's lease. We are pleased to have now secured the sale of this high quality investment asset."

For further information, please contact:

Matthew Weiner/Lucy Grimble, Development Securities

020 7828 4777