£80m funding secured for Rochdale Riverside development
An £80m deal has been signed which will ensure the delivery of the Rochdale Riverside scheme.
Genr8 Developments and Rochdale Borough Council have signed an agreement with M&G Investments to fund the delivery of the project.
The development, which will be delivered by a joint venture between Genr8 and Kajima, comprises 200,000sq ft of retail and leisure accommodation in the centre of Rochdale.
M&G has agreed a 250-year lease on the site and will grant a 35-year sublease back to the Council on completion of the scheme.
Mike Smith, partner, Genr8 Developments said: “This significant investment is a huge boost of confidence for Rochdale and for the scheme which will play a significant role in the continued regeneration of the borough.”
Shailendra Shah, investment director, M&G Real Estate, added: “We are extremely pleased to be working with the council and Genr8 on this scheme which will transform Rochdale town centre. This is an excellent example of where of where our pension fund client capital can be used to kick start regeneration schemes.”
Steve Rumbelow, chief executive of Rochdale Borough Council, said: “This announcement is not only great news for this fantastic development, but it also shows that Rochdale is a comeback town which is an increasingly attractive prospect for investors.
“Working with Genr8, we’ve taken an innovative approach to funding this scheme, which will see its £80m cost paid back over a 35-year period, funded by the rental income received from the occupiers.”
John Harcourt, head of property at Kajima, said: “The Rochdale Riverside development will have a lasting effect on the heartbeat of the town. We are proud to be involved in a project that creates new retail, leisure and job opportunities for the people of Rochdale.”
Genr8 has also completed lettings with leading brand retailers Boots, JD Sports and River Island who will occupy a further 32,000 sq ft of accommodation. This takes the scheme to more than 60% let with works on site about to commence.
Warwick Smither of Cheetham & Mortimer, agents on the scheme, said: “These new lettings represent an extremely positive endorsement of Rochdale and the Riverside scheme. All three retailers are committing significant new investment and will be bringing their latest retail offering to the town.
“The scheme presents an opportunity for brands to acquire modern retail accommodation in which to deliver their latest high street formats.”
The scheme, which also includes a six-screen cinema, represents the next phase of major investment in the town following completion of the new council offices, customer service centre and library at Number One Riverside.
This is coupled with the new transport interchange which has connected Manchester’s Metrolink system to the heart of the town centre. The schemes are part of a £250m regeneration project, which has transformed Rochdale town centre since work began in 2010.
