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14 January 1998
Two of the retail development schemes - in Bury St. Edmunds and Chichester - are under construction and have been pre-let. Completion of both is scheduled for July, 1998. The third scheme, in Streatham, south London, has been completed and is fully income-producing.
The Bury St. Edmonds scheme involves the conversion of the former Suffolk Hotel to form two large shop units of 8,200 sq ft and 4,700 sq ft (pre-let to Ottakers and Edinburgh Woollen Mills). It has been sold on a yield of around 5.8%. The Chichester scheme, where Countryside is refurbishing and converting two shop units to form one large one of 7,800 sq ft (pre-let to Boots The Chemist), has been sold on a yield of around 5.3%. In Streatham, SPP has acquired four shop units leased to Argos, Peacocks, Greggs Bakers and Adams Childrenswear - totalling 22,150 sq ft on a yield of around 8.75%.
Said Graham Cherry, Chief Executive, Countryside Properties PLC: " The success of these three projects reflects the shortage of large, modern retails units in the High Street. We continue to target opportunities where large units can be created through development or refurbishment. SPP put forward an attractive proposal to acquire all three properties".
The purchase and simultaneous sale and leaseback of a 4,225 sq ft office building in Leatherhead, Surrey, will be occupied from February, 1998, by Countryside Residential's South Thames operation on a 20-year lease. The sale price of £1.335 million reflects an initial yield of under 7%.
Said Mr. Cherry: " This is a relatively small deal for us but, it is an example of how we can use our commercial expertise to make money from the Group's own occupational requirements. Our recent experiences at Chertsey, Cobham, Thames Valley Park and elsewhere have shown that there is very strong demand from investors for well let M25 offices".
ENDS
For further information please contact:
Graham Cherry, Chief Executive, Countryside Properties PLC - 01277 690 516
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Information correct as at 14/01/1998