F&C Property Asset Management - Retail Development - Whitchurch & Bishop Auckland, £12 Million Portfolio

Date: 09 Jun 2006

F&C Property Asset Management has agreed to forward fund two new Homebase units at Whitchurch in Shropshire and Bishop Auckland, County Durham, for a total of £12 million reflecting a net initial yield of 5.6%.

The deals have been agreed with Consolidated Property Group, which is developing both units, as follows.

F&C will forward fund the Homebase unit on Waymills Road, Whitchurch in Shropshire for £6.876 million. The 33,294 sq ft (3,093 sq m) unit will comprise ground and mezzanine floors, with a garden centre of 7,000 sq ft (650 sq m). On practical completion, Homebase Limited will enter into a lease for 25 years at a rent of £395,000 per annum.

F&C has also agreed to forward fund a new Homebase Unit on Watling Street, Bishop Auckland in County Durham for £5.21 million. The 42,000 sq ft (3,902 sq m) unit will comprise a 25,000 sq ft (2,323 sq m) retail warehouse and 10,000 sq ft (929 sq m) mezzanine floor, together with a 7,000 sq ft (650 sq m) garden centre. On practical completion, Homebase Limited will enter into a lease for 20 years at a rent of £300,000 per annum.

George Cotton, F&C Property's Head of Out of Town Retail, says: "We are delighted to have agreed two further deals with Consolidated Property Group which follow Durham City Retail Park; Staden Lane, Buxton and Launton Road, Bicester. The funding agreements are in line with the Fund's strategy to increase exposure to the out of town retail market, which is still performing very well with careful stock selection."

F&C Property Asset Management, on behalf of Friends Provident Life Assurance Limited Commercial Fund, was advised by Savills on both deals.

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