Terrace Hill agrees forward funding with Aviva for Sainsbury store

UK developer-investor Terrace Hill Group has completed a forward funding agreement with Aviva Investors Pensions for the development and sale of the 8,600 m² Sainsbury's food store at its retail and leisure scheme at Tindale Crescent, Bishop Auckland, County Durham, UK.

The property has been pre-let to Sainsbury’s on a 25-year lease at an initial rent of £1.6 mln per annum and will be sold to Aviva for a total consideration of £27.7 mln (EUR 31 mln), reflecting a 5.7% net initial yield. Construction is due to start next month, with the store scheduled to commence trading by Christmas 2010.

Terrace Hill’s leisure and retail park at Tindale Crescent will also include a new stadium for Bishop Auckland Football Club.