In 2009, SHP contracted to purchase a former radiator factory from The Quinn Group, a major Irish corporation for approximately £13 million.
The 13 acre site contained a derelict, 250,000 sq ft 1950’s radiator factory that had been redundant and closed for several years together with various old wharf properties fronting the Bridgewater Canal.
SHP applied for and obtained planning permission for a mixed use retail and leisure development comprising 120,000 sq ft, single storey food superstore together with a six stand petrol filling station, a 27,000 sq ft, seven screen, 1400 seat, state of the art single storey multiplex cinema and 12,200 sq ft of A3/A4 single storey restaurant units. The scheme has 800 surface car park spaces and an alfresco open eating area overlooking the adjacent canal.
The planning permission was obtained by negotiation with Wigan District Borough Council and the entire planning process took 6 months to conclude including signature of the Section 106 Agreement. The scheme generated circa £1 million of Section 106 and Section 278 benefits for the local community. The Planning Committee approved the application on a 10–1 in favour vote.
SHP pre-let the food superstore to Tesco Stores Limited, the UK’s largest food retailer, on a 25 year lease. The lease, which is on FRI terms has five yearly fixed uplift reviews and the annual rental income is £2.15 million per annum.
The cinema was been pre-let to Cineworld, the UK’s second largest cinema chain on a 25 year FRI lease with five yearly fixed, upward only, rent reviews at a commencing rental of £290,000 per annum.
The £13.5 million build contract was awarded to McLaren Construction Limited and the 36 week contract period finished in July 2011.
The project was forward sold to Poss Fund (The Royal Mail Pension Fund) administered by LaSalle Investment Management for approximately £50 million reflecting a blended investment yield of 5.25% freehold.