Terrace Hill Group, the aim listed property development and investment group, has formed a funding and development joint venture with Peveril Securities to buy a Manchester development site.

It has bought the Heaton Retail Park in Manchester from Standard Life Investments for £5.7 m.

The park, which has an unrestricted open A1 planning consent, has been bought with a view to looking at future redevelopment opportunities.

Heaton Retail Park is a 43,000 sq ft scheme which is adjacent to an existing 80,000 sq ft Sainsbury’s and is currently let to Wickes, DSG International and American Golf.

Philip Leech, chief executive of Terrace Hill, said: 'The purchase of Heaton Retail Park represents an opportunistic buy of stock with the potential for redevelopment in the forthcoming years. This purchase underscores our capabilities and our growing presence in this specialist market. We will continue to look for other similar opportunities to create value by utilising our UK-wide team and by progressing our business model of working with joint venture partners. At the same time we are making good progress with lettings and asset management at our other projects, as evidenced by our recent announcements.'

Duncan McEwan, retail director of Terrace Hill, added: 'We already have a good understanding of current retailing requirements and working closely with retailers allows us to identify these sort of opportunities, underlining our expertise in this sector. Our focus now turns to the next stage of the process where our discussions with City of Manchester are well underway and we are confident of submitting planning applications later this year.'

Knight Frank acted for Terrace Hill and Peveril as agents. Edgerley Simpson Howe acted for Standard Life.