News: Tesco land deal unlocks forward funding
Rotherham Borough Council has agreed the £7.3m sale of its former town centre civic site with developers, TCN UK, enabling the £41m required for a new Tesco development to be secured.
Planning permission for a new 110,000 sq ft Tesco Extra superstore was granted last year which also include 540 parking spaces and a petrol filling station.
Work on the five-acre site, that has been home to a number of council buildings, is expected to start in the Spring.
Following the land deal, real estate investment specialists, Osprey Equity Partners finalised its Osprey Income and Growth 2 LP fund, having raised £16.9m of equity from private investors and £23.75m of debt from HSBC Bank. It will forward fund the £41m food superstore which has been pre-let to Tesco on a 30 year unbroken lease.
Coun Gerald Smith, Cabinet Member for Environment and Development Services for Rotherham Borough Council, said: "We are obviously delighted to see such a major player re-investing in our town. Tesco have been in Rotherham for many years but the new store will give the residents of Rotherham a much wider town centre shopping offer and experience as well as having a positive impact on the town centre in its own right.
"We also want this development to be a catalyst for further investment and improvement. Our commitment to helping everyone from major retailers to independent shopkeepers to thrive in Rotherham continues and the council, along with other organisations, has been working hard to do that. We have improved the infrastructure around the town centre with various developments like the Minster Gardens and the new railway station and there is also on-going support for traders."
Stephen Holme, Director of TCN UK added: "We are pleased to have been able to work with Rotherham Borough Council to help realise Rotherham's Renaissance ambitions for the Town Centre. Following this land purchase we intend to quickly progress matters that will allow us to make a start on site later this spring."
The development is set to create 450 jobs (200 full time and 250 part time). 200 of these are additional to the current store on Forge Island and all staff at the current store would be guaranteed a job at the new site.
The new development also meets the need for a larger food store in Rotherham town centre with Tesco increasing its floorspace from 2,911 sq m at Forge Island to 6,273 sq m at the new store.
Karl Battersby, the council's Strategic Director for Environment and Development Services, added: "This sale enables the next major development to take place and will allow the authority to consider the future use of Forge Island, once the existing Tesco store finally closes after the completion of the new one."
The council has an option to purchase the Forge Island site for £1.5m. It has been identified as a preferred location for a cinema and theatre development.
TCN website
Images: TCN / Smith Smalley
Planning permission for a new 110,000 sq ft Tesco Extra superstore was granted last year which also include 540 parking spaces and a petrol filling station.
Work on the five-acre site, that has been home to a number of council buildings, is expected to start in the Spring.
Following the land deal, real estate investment specialists, Osprey Equity Partners finalised its Osprey Income and Growth 2 LP fund, having raised £16.9m of equity from private investors and £23.75m of debt from HSBC Bank. It will forward fund the £41m food superstore which has been pre-let to Tesco on a 30 year unbroken lease.
Coun Gerald Smith, Cabinet Member for Environment and Development Services for Rotherham Borough Council, said: "We are obviously delighted to see such a major player re-investing in our town. Tesco have been in Rotherham for many years but the new store will give the residents of Rotherham a much wider town centre shopping offer and experience as well as having a positive impact on the town centre in its own right.
"We also want this development to be a catalyst for further investment and improvement. Our commitment to helping everyone from major retailers to independent shopkeepers to thrive in Rotherham continues and the council, along with other organisations, has been working hard to do that. We have improved the infrastructure around the town centre with various developments like the Minster Gardens and the new railway station and there is also on-going support for traders."
Stephen Holme, Director of TCN UK added: "We are pleased to have been able to work with Rotherham Borough Council to help realise Rotherham's Renaissance ambitions for the Town Centre. Following this land purchase we intend to quickly progress matters that will allow us to make a start on site later this spring."
The development is set to create 450 jobs (200 full time and 250 part time). 200 of these are additional to the current store on Forge Island and all staff at the current store would be guaranteed a job at the new site.
The new development also meets the need for a larger food store in Rotherham town centre with Tesco increasing its floorspace from 2,911 sq m at Forge Island to 6,273 sq m at the new store.
Karl Battersby, the council's Strategic Director for Environment and Development Services, added: "This sale enables the next major development to take place and will allow the authority to consider the future use of Forge Island, once the existing Tesco store finally closes after the completion of the new one."
The council has an option to purchase the Forge Island site for £1.5m. It has been identified as a preferred location for a cinema and theatre development.
TCN website
Images: TCN / Smith Smalley
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