A private fund managed by Osprey Equity Partners has completed the forward funding acquisition of a £22m Tesco superstore to be built in Chatteris, Cambridgeshire.
The Osprey Income and Growth 3 LP fund has acquired the 46,177 sq ft supermarket, which has been pre-let to Tesco on a 25-year lease with rental uplifts index-linked to RPI.
The deal is being funded through £9.1m of equity provided by high net worth investors and £12.2m of debt secured from Barclays Bank.
Cambridge Property Group will develop the supermarket.
It follows the successful closing of two similar Osprey food store funds: a £37m, 98,000 sq ft Sainsbury’s supermarket in Sunderland, which opened to the public in March 2013, and a £45m 110,000 sq ft Tesco food store in Rotherham, which will reach practical completion in October 2014.
Both formed Osprey Income and Growth 1 LP and 2 LP respectively.
The Chatteris scheme has achieved detailed planning consent and construction is due to begin next month, with practical completion expected in summer 2014.
Morgan Williams acted for CPG and Knight Frank acted for Osprey.
John White, property director at Osprey Equity Partners, said: “Our investors are attracted to the UK foodstore sector by the 25 year plus, inflation-linked income from quality tenants, and the forward funding structure currently offers the rare opportunity to access these institutional quality assets at a discount to investment pricing. The high 5% per annum RPI cap caught our eye on this asset.”
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