Helical Bar and Abbeygate Developments have completed the forward funding of their retail and leisure scheme, Leisure Plaza, Milton Keynes, with Aviva Investors' Lime Property Fund for circa £40 million. The transaction reflects a headline yield of 4.25%.
Under terms of the transaction, the JV will redevelop the entire Leisure Plaza scheme to provide an 80,000 sq ft supermarket, which has been prelet to Morrisons on a long lease. The scheme also includes a refurbished ice rink facility and a site with open A1 planning consent for two retail warehouse units, totalling 33,000 sq ft. The supermarket is due to be completed in August 2014.
Jack Pitman, Investment Director at Helical Bar, said: "this is a clear illustration of our strategy of creating institutional grade product through asset management and then releasing our equity so that we can recycle the proceeds into new opportunities”.
Wilkinson Williams advised Helical Bar and Abbeygate Developments.
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