Terrace Hill has completed a forward funding agreement with Aviva Investors Pensions Limited for the development and sale of the 92,333 sq ft Sainsbury's food store at its retail and leisure scheme at Tindale Crescent, Bishop Auckland, County Durham.
The property has been pre-let to Sainsbury's on a 25 year lease at an initial rent of £18 per square foot (£1,661,994 per annum) and will be sold to Aviva for a total consideration of £27.67 million, reflecting a 5.7% net initial yield. It is anticipated that the Sainsbury's store will commence trading by Christmas 2010, with construction starting in November 2009.
Terrace Hill's leisure and retail park at Tindale Crescent, will also include a new stadium for Bishop Auckland Football Club.