A fund advised by pan-European real estate investment manager Tristan Capital Partners has inked a deal to invest in the £50 mln (€59 mln) redevelopment of a department store in Plymouth, southwest England, in partnership with Thames Bank Property.
European Property Investors Special Opportunities 4 (EPISO 4), an opportunity fund, will invest in the extensive remodelling of the former Derrys department store in the city centre, alongside Thames Bank, which has been working on the property for more than three years.
Dubbed Plymouth Cross, the scheme will see the property partially demolished, extended and refurbished to create some 75,000 ft2 of retail and leisure space, a 500-bed student accommodation block and a hotel with 110 keys.
'Plymouth Cross will revitalise this part of the city centre by bringing new uses to this local landmark and providing much-needed quality student accommodation,' commented Peter Mather, managing director for Investments at Tristan Capital. 'A pre-let agreement is in place for the hotel and a student operator has signed up to directly let the student accommodation. There is strong interest for the new retail / leisure units from high street brands. This gives us great confidence about prospects for the project.'
Premier Inn, Britain’s largest hotel chain, has agreed a 25-year lease for accommodation on the building’s upper floors, while Homes for Students has signed a long-term agreement to operate the accommodation block that is scheduled to open in time for the start of the 2018-2019 academic year. Existing tenants occupying the ground-floor retail units include Argos and stationery chain Ryman.
'The investment from EPISO 4 allows us to start work in delivering a truly complementary mixed-use development with balanced income streams. I am delighted that Premier Inn has chosen Derrys for their central Plymouth hotel and their commitment for 110 hotel rooms and the ‘Thyme’ restaurant means that approximately half of the retail / leisure space is let or pre-let. I am confident that the redevelopment of Derrys will contribute significantly to the regeneration of the west end of Plymouth,' concluded Colin Morris, managing director of Thames Bank Property.
BLP advised EPISO 4 fund. Thames Bank was advised by CFK, NewLawsLegal, Mischon de Reya and Capra Global Partners.
