Property overview

Aldi, Costa and Little Pioneers Nursery, Corinthian Park, Grovefield Way, Cheltenham, GL51 6TA

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£10,600,000
Sep 2020

FSP has recently exchanged on the forward funding of a convenience food anchored retail scheme in Cheltenham, on behalf of Hinton Group.

The property has been forward funded by Aberdeen Standard Investments, represented by Joiner Cummings.

The property will comprise a 18,500 sq.ft Aldi supermarket, a 2,200 sq.ft Costa Coffee Drive Thru unit and a children’s day nursery extending to 5,404 sq.ft.

The supermarket is pre-let to Aldi Stores Ltd for a term of 25 years from completion.  The lease will be held on full repairing and insuring terms subject to 5 yearly upward only reviews to RPI collared at 1% and capped at 3% per annum compounded.

The coffee unit is pre-let to Costa Ltd for a term of 15 years (10 year tenant break option).  The lease will be held on full repairing and insuring terms subject to 5 yearly upward only reviews to RPI collared at 1% and capped at 3% per annum compounded.

The day nursery is pre-let to Kenmare Estates Ltd (trading as Little Pioneers), guaranteed by Midcounties Co-operative Ltd, for a term of 25 years.  The lease will be held on full repairing and insuring terms subject to 5 yearly upward only reviews to open market value.  The first two reviews will be subject to minimum fixed increases of 1% per annum compounded.

The total combined income is £495,000 per annum.

The property has been funded for £10,600,000 which reflects a net initial yield of 4.37%