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26 Oct 2009 07:00
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26Β OctoberΒ 2009
TERRACE HILL GROUP PLC
("Terrace Hill" or the "Company")
Completion ofΒ Β£27.67Β MillionΒ Forward Funding Agreement at Bishop Auckland
Terrace Hill Group plc (AIM: THG), a leading UK property development and investmentΒ group, announces thatΒ it has completedΒ a forward funding agreement with Aviva Investors PensionsΒ LimitedΒ for the developmentΒ and saleΒ ofΒ theΒ 92,333 sqΒ ft Sainsbury's food store at its retailΒ and leisureΒ scheme at Tindale Crescent, Bishop Auckland, County Durham.
The propertyΒ has been pre-let to Sainsbury's on a 25 year lease at an initial rent of Β£18 per square footΒ (Β£1,661,994Β per annum)Β andΒ will be sold to Aviva forΒ a total consideration ofΒ Β£27.67Β million, reflecting a 5.7%Β net initial yield. ItΒ is anticipated that the Sainsbury's store will commence trading by ChristmasΒ 2010, with construction starting in November 2009.
Terrace Hill'sΒ leisure and retail parkΒ atΒ Tindale Crescent,Β willΒ alsoΒ includeΒ aΒ new stadium for Bishop Auckland FootballΒ Club.
CommentingΒ Philip Leech,Β Chief Executive ofΒ Terrace Hill, said:Β Β
"We are delighted that AvivaΒ isΒ 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.Β
"Today's announcement followsΒ ourΒ recent sale to Sainsbury'sΒ of a site for a 55,000 sq ft foodstore and petrol stationΒ in Helston, Cornwall, and the acquisition, in joint venture, ofΒ Heaton Retail ParkΒ adjacent to a Sainsbury's store in Manchester."
Robert Walton, Head of UKΒ Institutional Funds -Β Real Estate,Β Aviva Investors,Β said:Β
"This acquisition marks theΒ return of theΒ Aviva Investors PooledΒ Property fundΒ to the marketΒ as we lookΒ toΒ acquire investments in a variety of sectors.Β We have a good relationship with the developer of the supermarket site, Terrace Hill, having worked with them previously on other projects.Β 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."
- Ends -
For further information:
Terrace Hill www.terracehill.co.uk
Philip Leech, Chief Executive Tel: 020 7631 1666
Duncan McEwan, Retail Director Tel: 01642 878 070Β
Financial Dynamics Tel: 020 7831 3113
Richard Sunderland/Rachel Drysdale Β terracehill@fd.com
Notes to editors:
Terrace Hill Group PLC
Terrace Hill is an AIM-listed property development and investment group with three key divisions:Β
Commercial development and investment
Residential investmentΒ
Housebuilding.
Formed in 1986, theΒ Company has four offices inΒ London,Β Glasgow, Teesside andΒ Bristol, managing aΒ commercialΒ developmentΒ programme, commercial and residential investment portfolios and a housebuilding business inΒ Scotland.
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