Commencement of Haddington Retail Park development
28 September 2020
Ediston Property Investment Company plc ('the Company')
(LEI: 213800JRL87EGX9TUI28)
Commencement of the Haddington Retail Park development
Construction has started on the Company's 48,000 sq. ft. retail park and petrol filling station in Haddington, East Lothian. Haddington is a growing commuter town located 18 miles to the east of Edinburgh.
The site, which is adjacent to several new housing developments, is 97% pre-let to national retailers Aldi, Home Bargains, The Food Warehouse, Costa Coffee and Euro Garages. One unit of 1,500 sq. ft. is available to lease, but it is anticipated that this will be let prior to completion. The development is expected to achieve practical completion in June 2021.
As a result of this project, the Company's retail warehouse weighting will increase from c. 60% to 64% and the regional weighting to Scottish assets will increase from c. 11% to 14%, both well within the Company's investment restrictions.
Once completed and fully occupied, the retail park will provide the Company with a rental income of £875,000 per annum and will have a weighted average unexpired lease term of 14.4 years, assuming the vacant unit is let for a term of five-years.
Costs to completion will be c. £7.5m. This will be funded through a combination of the Company's existing debt facilities and cash resources, with the cash outlay identified in the Company's current cash budgeting. The development should generate an income return on cost of capital employed of c. 8.00% per annum.
Calum Bruce, Investment Manager, commented:
"We are delighted to commence development of this convenience led retail park, a sub-sector of the retail market which has proved to be resilient during the COVID-19 pandemic. This asset complements our development program which is expected to deliver £1.1m of additional income in the next 12 months which will increase the net income available for distribution to shareholders."
End
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Enquiries |
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Will Barnett |
- Investec Bank plc |
0207 597 5873 |
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Calum Bruce |
- Ediston Properties Limited |
0131 225 5599 |
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Ruth Wright |
- JTC |
0203 893 1011 |
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Ben Robinson |
- Kaso Legg Communications |
0203 995 6672 |
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Stephanie Ross |
- Kaso Legg Communications |
0203 995 6676 |
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