Construction has started on the 48,000 sq. ft. retail park and petrol filling station in Haddington, East Lothian.
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, and it is anticipated that this will be let prior to the projected development completion date of June 2021.
Once completed and fully occupied, the retail park will provide the Company with additional 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. The development should generate an income return on cost of capital employed of c. 8.00% per annum.
