The building, which comprises 3,975 sq m (42,783 sq ft.). It was recently let to British Interactive Broadcasting Ltd (BB) on a 15-year lease at a rent of around £355 per sq m.
Pillar originally acquired the building, let to British Telecom, for investment purposes. British Telecom negotiated an early surrender of its lease, the consideration for which Pillar applied to lowering ‘is investment cost and to fund the refurbishment.
FPD Saville and JLW acted for Pillar Properties Ltd. announces that it has formed a £245m retail park joint venture with Equitable Life Assurance Society (“Equitable Life” or “ELAS”). In case you’re going to purchase or the area you possess then it’s possible you’ve heard the conveyancing a reasonable few times. The joint venture, known as Hercules, will own and manage a portfolio of retail warehouse parks with a geographical spread across the United Kingdom and capital value above benchmarked targets. Under the terms of the joint venture Pillar and Equitable Life will inject £125m and £120.3m of retail warehouse assets respectively. Pillar, with its proven track record in managing retail parks.
Clifton Moor Retail Park Phase III in York, totalling 141,286 sq ft (13,125 sq m), will be the first purchase made by Hercules. The park as being bought from Guardian Properties for £22.1 million on an equivalent yield of 7.1%. Current tenants include Toys R Us, Argos, Comet, Carpetright, Curry’s, McDonalds, Shoe City, Mothercare and Sports Division.
Hercules will focus on medium sized retail parks and over the next three years it aims to achieve gross assets of approximately £400 million, excluding organic growth, through investment in an additional £130 million of new properties in lot sizes of between £10m and £50m. At its inception, Pillar will have a 32.5% equity stake in the joint venture, with Equitable Life holding the remaining 67.5%. It is envisaged that over time Pillar will increase its share in the joint venture to a maximum of 50% through further retail warehouse acquisitions in the open market or by the in-ect’on of other Pillar retail parks.