Rockspring Property Investment Managers has signed a pre-let agreement to Wm Morrison Convenience Stores Limited (Morrison M-Local) for a 3,978 square foot retail unit at the City Gateway development, Southampton.
City Gateway is a development scheme comprising 364 student rooms, pre-let to the University of Southampton on a 30 year lease, a medical centre and pharmacy, and four retail units, of which the Morrison M-Local unit is the largest. The medical centre and pharmacy are both pre-let, to a partnership of doctors and Lloyds Pharmacy respectively, and talks are ongoing with potential occupiers for the remaining three retail units.
The scheme is being delivered by Bouygues Development and is scheduled for practical completion in summer 2014. The development was forward-funded by a separate account of Rockspring, for a total cost of GBP23.5m.
Michael Pryer, associate partner at Rockspring, says: “The student housing sector has shown consistently strong investment returns, and we are confident that this high quality development with one of the UK’s leading universities will continue this trend and generate a good return for our client. The pre-let to a national retailer such as Morrison M-Local is a significant step forward for the animation of the whole City Gateway scheme and we continue to make excellent progress in securing other tenants, with nearly a full year to go before completion.”
The letting agent is Hughes Ellard, acting on behalf of Bouygues Development. Morrison M-Local was represented by Cushman & Wakefield. Bollingbrook project managed the scheme on behalf of Rockspring.