£35m Forward Funding for Sainsbury's in Sunderland (9196A)
April 05 2012 - 7:01AM
UK Regulatory
TIDMTHG
RNS Number : 9196A
Terrace Hill Group PLC
05 April 2012
5 April 2012
TERRACE HILL GROUP PLC
("Terrace Hill" or the "Company")
GBP35 million Forward Funding Secured for Development of
Sainsbury's Foodstore in Sunderland
Terrace Hill Group plc (AIM: THG), a leading UK property
development and investment group, announces the completion of the
forward funding of a GBP35 million supermarket, pre-let to
Sainsbury's on a 25 year lease.
The property will comprise a new, 97,729 sq ft Sainsbury's
supermarket, with six pump petrol filling station and 517 parking
spaces, located in Sunderland, Tyne and Wear. Construction is due
to commence in April 2012 with store opening expected in March
2013.
The acquisition and development has been forward funded by
Osprey Supermarket Income and Growth 1 LP, a private investor fund
arranged by Osprey Equity Partners. The project is being funded
through GBP15 million of equity provided by UK high net worth
individuals (both directly and through personal pension funds) and
GBP20 million of debt provided by HSBC Bank plc.
The project reflects Terrace Hill's strategic decision to focus
further on the supermarket development sector and is one of a
number of similar developments within the Terrace Hill pipeline. On
completion of the forward funding, the Company received GBP2.5
million representing the recovery of its working capital and an
initial profit payment.
Osprey Supermarket Income and Growth 1 LP is the first of a
series of private investor funds launched by Osprey Equity
Partners, designed to achieve attractive income and growth returns
underpinned by secure, well let, direct commercial property
assets.
Philip Leech, Chief Executive of Terrace Hill, commented:
"The securing of forward funding is a significant step for the
project, and underlines Terrace Hill's ability to source financing
for our developments, in spite of the challenging funding
environment. We continue to see potential for further growth in the
foodstore sector, and believe that our activities in this market
will generate good returns on behalf of our shareholders as we
progress this and our pipeline of opportunities."
Quote from John White, Director and Head of Property, Osprey
Equity Partners:
"We are delighted to be working with Terrace Hill and HSBC on
this project. The fund was oversubscribed and reflects the appeal
of secure, income producing property assets amongst private
investors and SIPPs, especially against a backdrop of continuing
volatility in equity markets and with historically low returns on
cash deposits."
- Ends -
For further information please visit www.terracehill.co.uk or
contact:
Philip Leech/Jon Austen Tel. 020 7631 1666
Terrace Hill Group PLC
Gareth Price/Mark Young Tel: 020 7710 7600
Oriel Securities (Nominated Adviser)
Richard Sunderland/Olivia Goodall/Will Henderson Tel: 020 7831
3113
FTI Consulting
terracehill@fticonsulting.com
Osprey Equity Partners - Contacts:
Tracy Benjamin (Director, Head of Sales) Tel: 020 7195 1472
tracy.benjamin@ospreyep.com
John White (Director, Head of Property) Tel: 020 7195 1473
john.white@ospreyep.com
Simon Lee (Director, Head of Product Development and Structuring) Tel: 0207 195 1471
simon.lee@ospreyep.com
Notes to editors:
Terrace Hill Group
Terrace Hill Group PLC is a regionally based UK property
development and investment group quoted on AIM. Formed in 1986, the
Company has five offices located in London, Glasgow, Teesside,
Bristol and Manchester.
Osprey Equity Partners
Osprey Equity Partners is a privately held investment company
focused on providing its clients with real estate investment
solutions.
Over the last 25 years, our team has capitalised and transacted
over GBP2 billion of commercial property assets.
Osprey Equity Partners is backed by the LJ Group, an independent
privately held merchant bank and multi-family office with more than
US $5 billion of assets under supervision and which serves a client
base that includes family offices, sovereign wealth funds and
private equity groups.
For further information about Osprey Equity Partners, please
visit www.ospreyequitypartners.com
For further information about the LJ Group, please visit
www.ljinvestmentgroup.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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