Aberdeen Property Investors - Mixed-Use Development - Hemel Hempstead, £50 Million Riverside Development

Date: 18 Mar 2004

Aberdeen Property Investors has agreed funding of the commercial element of the mixed-use Riverside development in Hemel Hempstead with Crest Nicholson for £50 million reflecting a net initial yield of 6.85%.

Riverside extends to 35,780 sq m (385,000 sq ft) in Hemel Hempstead town centre. When completed, the commercial element will include 26,556 sq m (286,000 sq ft) of integrated retail, leisure and hotel accommodation, plus 355 car parking spaces.

Riverside has recently reached the 70% prelet mark with Next, HMV, Premier Lodge and Starbucks joining anchor tenant Debenhams. Work started on site in December 2003 and with the centre opening planned for Autumn 2005.

Tim Turnbull, Fund Manager at API said:
“This scheme will increase the shopping provision in Hemel to around 900,000 sq ft delivering a modern department store, large shop units and high quality restaurants in an attractive waterside environment. We believe that the lack of all these facilities has previously held back Hemel, and Riverside should encourage more people to shop in the town more frequently, increasing tenant demand and hence rental growth.”

Edward Skeates of Crest Nicholson said:
“Riverside is letting very quickly and the speed of this funding agreement is further testament to the strength of the scheme’s design and the calibre of tenants already in place. We are very pleased to have done this deal with Aberdeen over a relatively short period.”

The project will also include approximately 100 one and two-bedroom apartments. Crest Nicholson will undertake this additional £15 million residential element through its Eastern region residential arm which is based in Hemel.

CB Richard Ellis acted for Crest Nicholson on the funding deal. Hartnell Taylor Cook and Donaldsons are retained as the scheme’s letting agents.
Riverside was designed by Bernard Engle Architects and Planners. Balfour Beatty has been appointed as main contractors for construction.

Riverside development in Hemel Hempstead

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