10 May 2014
The Carlyle Group & Bride Hall, advised jointly by international real estate advisor Savills and Tushingham Moore, have agreed four lettings at Pepper Street in Chester to Chimichanga, Coast to Coast, Restaurant Bar and Grill and Las Iguanas.
Construction has started on site at Pepper Street, which is located in the heart of Chester’s city centre within its historic Roman walls, to redevelop the former Habitat store into four bespoke units totalling 25,014 sq ft (2,324 sq m) that will create a prime new leisure destination in the North West.
Chimighanga, Coast to Coast, Restaurant Bar and Grill and Las Iguanas have all agreed new 20-25 year leases on units totalling 4,840 sq ft, 4,329 sq ft, 7920 sq ft and 7,925 sq ft respectively. The total annual income generated by the asset is in excess of £530,000.
John Agnew, retail / leisure director at Savills, comments: “Pepper Street is set to become a leading leisure destination in the region and these lettings to very well established operators underline the future popularity of the scheme when it opens in 2015. The four tenants have their own individual appeal and will complement each other in providing a strong offer to residents and visitors alike.”
In addition to the recent lettings, Savills has also advised The Carlyle Group & Bride Hall on securing funding for Pepper Street. A deal of circa £8 million has been concluded with a pension fund, reflecting a net initial yield of approximately 6%.
Roger Gorham, director at Bride Hall, says: “We are very pleased to have secured such high profile pre-lets at Pepper Street, as well as putting in place the forward funding, both of which reflect the on-going interest and confidence in the scheme. With construction having started
Chimichanga and Las Iguanas represented themselves, while Coast to Coast and Restaurant Bar and Grill were advised by Wareing and Partners and Jenics respectively. The pension fund was represented by BNP Paribas.