Muse and Schroders agree major forward funding deal at Cheadle Royal
National regeneration specialist, Muse Developments, has secured a major forward funding deal, as Schroders Regional Office Property Unit Trust agrees to acquire a new scheme currently under construction at Cheadle Royal.
The building occupies a prominent position in the heart of the 67-acre business park and has an agreement for lease signed to a major occupier on a 15-year lease. The undisclosed price paid by Schroders reflects a net initial investment yield of 6%.
Greater Manchester-based Seddon Construction is now on site until the end of 2020 to deliver the two-storey, self-contained building.
Tom Webber, senior development surveyor at Muse, said: “The deal with Schroders is a proud moment for everyone involved, as It highlights investor confidence in our long-term delivery strategy at Cheadle Royal.
“Stockport is experiencing a real period of sustained transformation, and we’re delighted to bring Schroders to the scheme and play our part in the borough’s success.”
Tom Newman, fund manager at Schroder Real Estate, said “this is now the sixteenth acquisition for the regional office fund and we are delighted to be working with Muse on this exciting development at Cheadle Royal.
“This acquisition complements our regional office strategy to acquire good quality real estate let to good covenants. We have an active requirement for regional offices and have in excess of £100 million available for immediate investment.”
Cheadle Royal Business Park is a £175m development delivered by Muse. Set in mature parkland close to major national and international transport links such as Manchester Airport, it benefits from access to a range of on-site amenities, including shops, bars, restaurants and health facilities.
Cllr David Meller, cabinet member for economy and regeneration at Stockport Council, said: “We continue to attract international investors and high calibre businesses to Stockport. As one of the UK’s best- connected business locations and our reputation for solid economic development, it’s no surprise that we’re attracting big names to the borough.”
Other businesses currently based at Cheadle Royal, include Together Money, Jarden and Agilent Technologies.
Craig Barton at Cushman and Wakefield advised Muse Developments, with Andrew Hilbourne at JLL acting on behalf of Schroders.