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July 2018

Cotswold Retail Park, Tewkesbury Road, Cheltenham, GL51 9SG

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Hinton Developments, represented by FSP, completed the development of a new Lidl supermarket and Starbucks Drive Thru unit on the former BMW site on Tewkesbury Road, Cheltenham.

The property was forward funded by Nationwide Pension Fund, managed by Lasalle Investment Management.

The supermarket is let to Lidl GmbH for a term of 25 years from July 2018 with a 15 year tenant break option.  The lease is subject to 5 yearly upward only reviews to RPI collared at 1% and capped at 3% per annum compounded.  The commencing rent will be £518,770 per annum.

The drive-thru unit is let to Starbucks Coffee Company UK Ltd for a term of 15 years from July 2018.  The lease is subject to 5 yearly upward only reviews to RPI collared at 1% and capped at 4% per annum compounded.  The commencing rent will be £100,000 per annum.

The development funding sold for £11,753,000 which reflected a net initial yield of 5.00%.

JLL represented Lasalle Investment Management.

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