Knight Frank Investment Management has completed the forward funding of two new Asda food stores in Didcot and Newton Leys for a total of £6.6m in an off-market deal.
Both stores are being developed by Henry Davidson Developments, a specialist retail-led developer based in Nottingham.
The Didcot store totals 11,668 sq ft and has been pre-let to Asda on a 20-year lease at an initial rent of £186,688 pa (£16 per sq ft). It will anchor the District Centre at Great Western Park. Knight Frank Investment Management agreed to forward fund the £3.5m development, reflecting a net initial yield of 5.1%.
Asda has pre-let the Newton Leys store in Bletchley on a 25-year lease at an initial rent of £172,500 pa (£15 per sq ft). The 11,500 sq ft property is located on Jersey Drive. Knight Frank Investment Management forward funded the £3.085m development off a net initial yield of 5.33%.
In both cases, Knight Frank Investment Management acquired the freehold land interest and agreed a fixed balancing payment on practical completion of the building works and completion of the lease.
Prime Retail advised Knight Frank Investment Management on the forward purchase structure and throughout the deal.