In December, planning consent was received for the Company’s retail warehouse development at Haddington, East Lothian. The Company now has a planning consent for a 48,000 sq. ft. retail warehouse park and a petrol filling station.
The asset is 97% pre-let to Aldi, The Food Warehouse, Costa Coffee, Home Bargains and Euro Garages. One unit of 1,500 sq. ft. remains available to let, in which there is tenant interest. Once fully let and constructed, the asset will have a WAULT in excess of 15 years and will generate an annual rent of £875,000. Based on tendered build costs, the project should generate a return on cost of capital employed of around 8.0% per annum.
The fact the development is significantly pre-let to national retailers proves there is still demand for well-located retail parks let off affordable rents.