IKEA has bought the freehold of the Bristol Greyhound Stadium and the adjoining Eastgate Retail Park at Jctn 2 of the M32 at Bristol for £19m from BS Group. The purchase is IKEA’s largest UK investment and development deal to date.
IKEA proposes to develop a store on the 4.8ha (12 acre) stadium site. This site is zoned for retail and lesiure use, although the company has yet to gain planning consent for its development. IKEA hopes to have won consent by the end of 1997.
The 10,590 sq m (114,000 sq ft) Eastgate Retail Park is entirely let on 25-year leases to tenants including Childrens World, Halfords, Office 1 and Burger King. Passing rents equate to £83.42 per sq m (£7.75 per sq ft) for the larger units and £88.81 per sq m (£8.25 per sq ft) for the smaller units.
Catella UK advised IKEA on the purchase and will now manage the retail park. Chesterton (Bristol) and Russell Management represented BS Group.
EGi News 19/11/96
