Reading: Gateway scheme gets £40m forward funding
Advised by Lambert Smith Hampton, Kier Property, the development arm of the Kier Group, has completed a £40 million forward-funding deal with a client of Aberdeen Asset Management for the 80% pre-let Reading Gateway site in Reading.
The 109,000 sq ft mixed-use gateway scheme, which is currently under construction, secured a number of significant pre-lets including a 120-bed Premier Inn & Beefeater Restaurant, a 20,000 sq ft Toys R Us, a 20,000 sq ft Wren Living, a Costa drive-through unit and a drive-through Burger King restaurant.
The investment provides a WAULT (weighted average unexpired lease term) of 16.5 years and 48% of income is subject to indexed-linked uplifts. The scheme also includes two vacant retail units of 6,000 sq ft and 8,500 sq ft which are being marketed by joint agents LSH and Edgerley Simpson Howe.
The development is scheduled to be completed in September 2018 and will provide a significant retail and leisure experience, in a prominent location adjacent to Junction 11 of M4 and in close proximity to Green Park and The Madjeski Stadium.
There will also be two future phases on the Reading Gateway site, which do not form part of the forward-funding. These phases consist of two car showrooms and a 12-unit trade counter scheme which will be delivered under Kier’s Trade City brand.
Charlie Lake, capital markets director for LSH, commented: “Lambert Smith Hampton is proud to have supported Kier Property in the regeneration of this key site in Reading - from supporting the initial land use aspirations, identifying and securing the existing tenant mix and the successful marketing and selection of a committed funding partner for the final stage. We look forward to working with both parties as we continue to promote the final elements of the remaining phases.
“It was particularly encouraging to witness such strong demand, especially considering the speculative element of the opportunity, which in the context of continued political instability, highlights the continued global appetite for the South East and the UK.”
Pip Prongué, managing director (South) for Kier Property, added: “We are pleased to announce the forward funding of this development with Aberdeen Asset Management. We are looking forward to delivering this exciting scheme over the coming months and are proud to bring new inward investment and employment opportunities to this part of Reading, following the regeneration of this previously redundant site.”
