Cotswold Retail Park, Tewkesbury Road, Cheltenham, GL51 9SG
Hinton Developments, represented by FSP, has exchanged contracts with Nationwide Pension Fund, management by Lasalle Investment Management, on the forward funding of a new Lidl supermarket and Starbucks Drive Thru unit on the former BMW site on Tewkesbury Road, Cheltenham.
Construction on the new supermarket and Drive Thru unit has commenced with practical completion expected in March 2017.
The supermarket is pre-let to Lidl GmbH for a term of 25 years from practical completion with a 15 year tenant break option. The lease is subject to 5 yearly upward only reviews to RPI collared at 1% and capped at 3% per annum compounded. The commencing rent will be £518,770 per annum.
The drive-thru unit is pre-let to Starbucks Coffee Company UK Ltd for a term of 15 years from practical completion. The lease is subject to 5 yearly upward only reviews to RPI collared at 1% and capped at 4% per annum compounded. The commencing rent will be £100,000 per annum.
The development funding sold for £11,753,000 which reflected a net initial yield of 5.00%.
JLL represented Lasalle Investment Management.