British Land is to forward-purchase ASDA Wal-Mart’s 200,000 sq ft (18,580 sq m) Orbital Shopping Park in Haydon, north Swindon for £53m.
The deal for the development, which is scheduled to complete in October of this year, reflects a yield of around 6.5%.
ASDA Wal-Mart has already secured prelets on 75% of the accommodation to retailers including Homebase, Comet, Next and JJB Sports. The remaining units are expected to go for rents in excess of £25 per sq ft (£269 per sq m).
The Orbital Shopping Park is anchored by the UK’s first purpose-built 150,000 sq ft (13,935 sq m) ASDA Wal-Mart Supercentre, which opened on 26 November 2001.
Mark Turner, senior development surveyor for ASDA Wal-Mart, said: “The Orbital Shopping Park was put firmly on the map when our Supercentre opened its doors in November last year. This has led to a wide variety of interest in the new units from numerous quality retailers as today’s announcement illustrates.”
Tim Roberts, joint head of asset management at British Land, said: “We are pleased to have worked with ASDA Wal-Mart to help secure a prime destination shopping park. With an open planning consent and strong retailer demand from high street retailers we envisage good rental growth.”
Harvey Spack Field provided investment advice for British Land and Colliers CRE advised ASDA Wal-Mart.
EGi News 25/02/02
