MAPIC: British Land buys Hereford retail scheme in forward-funding deal

By A staff reporter 2012-11-13T00:00:00+00:00

British Land has signed the forward-funding acquisition of the Old Market retail scheme in the centre of the English city of Hereford. The UK REIT said the £90 mln (EUR 112 mln) agreement with developer Stanhope is one of the few significant forward-funding retail deals to take place in the UK over the last five years.

British Land has signed the forward-funding acquisition of the Old Market retail scheme in the centre of the English city of Hereford. The UK REIT said the £90 mln (EUR 112 mln) agreement with developer Stanhope is one of the few significant forward-funding retail deals to take place in the UK over the last five years.

The deal represents a yield on cost of between 6.75 and 7%.

Work will start on site imminently and British Land will own the 28,800 m² scheme on completion in spring 2014.

The open-air scheme, on the site of Hereford's former cattle market, will comprise 22 retail units, seven restaurants and a six-screen cinema. More than 50% of the space has already been pre-let.