A four acre site in Bishop Auckland, County Durham which currently houses a Focus DIY store is to be redeveloped as a retail park, it was revealed today.
Metric Property Investments has bought the site for an initial consideration of £2.3 million from previous owners Bank of Ireland and Kingsland Estates.
By investing a further £8.7 million in development costs, Metric hopes to create a 50,000 sq ft retail park on the site, which adjoins recently opened Tesco and Sainsbury’s outlets.
Andrew Jones, CEO of Metric, commented: “We are in discussions with our target retailers and are excited by the high level of occupier appeal already demonstrated.
“We believe that it will form an attractive and profitable addition to our redevelopment portfolio as well as being complementary to the schemes that we are currently progressing in Leeds and Bristol.”
Whilst the pipeline for major retail developments has remained stubbornly dry for the next year, with Westfield Stratford being the exception to the rule, Metric has been busy over the last 12 months or so purchasing and building small out-of-town sites around the UK.
Since early 2010 Metric has invested £196 million in a total of 15 schemes, including this latest one, and occupancy across its sites currently stands at 98 per cent.
If planning permission is granted, construction of this new retail park will begin early next year with completion scheduled for autumn 2012, and Metric believes the finished construction will deliver a yield on cost of 7.75 per cent once fully occupied.