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16 June 2004
Countryside Properties PLC ("Countryside Properties"), the specialist developer of sustainable communities and Quintain Estates & Development PLC ("Quintain"), are pleased to announce that they have forward sold the commercial element of their mixed-use development at Merton Abbey Mills, South London to AXA Sun Life for £15.56m, reflecting a net initial yield of 7%.
The commercial element of the Abbey Mills scheme comprises a 51,000 sq.ft. health and fitness unit pre-let to Virgin Active; a 132-bedroom hotel, pre-let to Premier Lodge; and two stand-alone restaurants of 3,326 sq.ft and 3,189 sq.ft let to KFC and Pizza Hut respectively.
The remainder of the development comprises 276 contemporary apartments for sale, with build completion of the development anticipated by Summer 2006. The entire scheme has a completed development value of approximately £89 million.
Graham Cherry, Countryside Properties’ Chief Executive, commented: "Merton Abbey Mills is part of our substantial portfolio of mixed-use projects and can be seen as another example of Countryside Properties' unique and valuable skills which continue to create new business opportunities. This forward sale confirms that there is a strong investment appetite for well designed well-let commercial investments, which form part of larger mixed-use schemes."
Nick Shattock, Quintain's Property Director, commented: "We are pleased to have extracted some value early from this major mixed-use scheme demonstrating the progress which has been made by the joint venture. We now look forward to working with Countryside to deliver the remainder through to sale over the next couple of years."
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Information correct as at 16/06/2004