Rockspring Property Investment Managers is funding the development of a Sainsbury’s supermarket at Shenley Church End in Milton Keynes for £12.3m.
The deal reflects a 5.1% net initial yield. The scheme is prelet to Sainsbury’s on a 25-year lease, and will provide 38,000 sq ft of retail space and 238 car parking spaces.
It is due to complete next spring.
Frontier Estates is Rockspring’s development partner for the project.
Phil Sturdy, Rockspring’s European director, said: “The development of the site is in line with our strategy of creating value through funding developments at a discount to standing investments.”
Damian Wood, Frontier Estates director, added: “Frontier is continuing its expansion in the foodstore sector and is working on a number of opportunities with Sainsbury’s, ASDA, Morrisons, Tesco and Waitrose.”
Douglas Stevens acted for Rockspring; Warneford advised Frontier Estates.
annabel.dixon@estatesgazette.com
