Rockspring Property Investment Managers is funding the development of a supermarket in Milton Keynes, UK, for £12.27m (€14.38m), reflecting a net initial yield of 5.1%, on behalf of a separate account mandate.
Frontier Estates is Rockspring’s development partner for the project.
Prelet to Sainsbury’s on a 25-year lease, the scheme, which is due to be completed in spring next year, is located at Shenley Church End in Milton Keynes, and will provide 3,530 m2 of retail space and 238 car parking spaces. Construction is will start imminently.
Phil Sturdy, Rockspring’s European director, said: “The development of the site at Shenley Church End is in line with our strategy of creating value through funding developments at a discount to standing investments. Once developed, the supermarket will provide a 25-year indexed income stream from Sainsbury’s.”
Damian Wood, Frontier Estates’s director, said: “We are delighted to have agreed a deal with Rockspring to forward fund this foodstore development in Milton Keynes. 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.”
