Mason Philips - Retail Development - Herefordshire, Funding Agreed

Date: 06 May 2004

Merchant Place Corporate Finance has agreed to forward fund Pettifer Estates' Sainsburys Homebase scheme in Ledbury, Herefordshire to the tune of £3.25m, reflecting a net initial yield of close to 6.39%.

Sainsburys has signed a 20-year FRI lease with five yearly, upwards only, rent reviews at a rent of £210,000 pa with a fixed uplift at the first review to £237,595pa. The store, which will be completed by June will comprise 1,950 sq m (21,000sq ft) on the ground floor with 929 sq m (1,000sq ft) at mezzanine level. There will be a 743 sq m (8,000sq ft) garden centre adjoining and parking for 101 cars.

Selby Ludolf of agent Mason Philips which structured the deal between Merchant Place Corporate Finance and Pettifer Estates comments: "We identified this opportunity before it came to the market. The developer, Pettifer Estates, has funded other schemes with our client in the past and were pleased to undertake this opportunity on a similar basis."

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