Good news26 Oct 2009 08:04
TERRACE HILL GROUP PLC
("Terrace Hill" or the "Company")
Completion of GBP27.67 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 GBP18 per square foot (GBP1,661,994 per annum) and will be sold to Aviva
for a total consideration of GBP27.67 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 Sainsb