Legal &General Property (LGP) is to forward-fund the development of a Waitrose supermarket in Greenwich through its UK Property Unit Trust (PUT). The development is located in Galliard Home’s New Capital Quay.
LGP has agreed the purchase of the site in Norway Street, Greenwich, for the development of a 31,126 sq ft Waitrose on a 999-year leasehold.
LGP was advised by Tudor Toone. Waitrose has taken a 25-year prelet of the site and will pay an annual rent of £825,000 with fixed yearly uplifts.
Matt Jarvis, fund manager at LGP, said: “With forward-funding deals forming a growing part of our investment focus, given the widening development finance gap, this represents yet another great opportunity for Legal & General to access a prime located, south-east based development scheme let to one of the UK’s strongest covenants.
“Benefiting from the regeneration of the Greenwich peninsula this site presents an excellent chance to invest in a densely populated area with good transport links and substantial residential accommodation under construction,” he added. “The long-term nature of the lease to Waitrose, alongside the fixed uplifts and strong covenant, will provide the Fund with an excellent core asset.”
sophia.furber@estatesgazette.com
