Terrace Hill secures forward funding for EUR 42m supermarket

AIM-listed property developer-investor Terrace Hill has completed a forward funding transaction of a £35 mln (EUR 42 mln) supermarket in the UK. 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 £15 mln of equity provided by UK high net worth individuals (both directly and through personal pension funds) and £20 mln of debt provided by HSBC Bank.

The supermarket under development is Sunderland, Tyne and Wear is pre-let to Sainsbury’s on a 25-year lease. The property will comprise a 9,000 m² Sainsbury's supermarket, with a petrol filling station and 517 parking spaces. Construction is due to commence in April 2012 with store opening expected in March 2013.

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.