Oakgate Group has entered into a funding agreement on their new shopping park at Monks Cross, York with an institutional fund.
The Vangarde Shopping Park which is currently under construction will extend to 339,000 sq ft and will be occupied by Marks and Spencer, Next and will feature the first out of town John Lewis department Store in the North East. The development will also include a terrace of restaurants and small retailer pods.
Marks and Spencer will occupy a unit of 130,000 sq ft across two retail levels and are purchasing their own unit on a long leasehold basis.
The Fund are acquiring the balance of the freehold scheme for £62.55 million, reflecting a yield of 5.15%.
The new flagship development which is financially supported by Bank Leumi (UK) plc will provide significant funding for the new 6,000 seat Community Stadium as part of the enabling works.
Richard France, Managing Director of Oakgate Group, commented: “The destination retailers we have secured, together with the scale and quality of the development will attract customers throughout Yorkshire and the region and give a major boast to the York economy.”
Charles Watson, Senior Director, Retail Capital Markets , CBRE said: “This is the most exciting out of town retail development for many years. Oakgate have been the most persistent of developers having first acquired the site in 2003; they have now secured an open A1 planning consent, first class occupiers and institutional funding. We were delighted to advise and assist throughout the whole development process.”
CBRE have acted for Oakgate Group on all lettings, development advice and investment funding.
Edgerley Simpson Howe advised the fund. The scheme is due to open Easter 2014.
