P&O sells Drake Circus project ahead of completion
P&O has raised£55 million from the sale of Drake Circus shopping centre in Plymouth to Morgan Stanley Real Estate Fund. The move is part of a strategy to raise£250 million from property disposals as the company focuses on its shipping and transport interests.
The 600,000 sq ft (55,740 sq m) development in the heart of the city is under construction at the moment, and is expected to open in autumn next year. P&O Developments will continue to manage the scheme and will receive a bonus if rents exceed agreed levels.
The development is already 50 per cent pre-let, with Allders and Marks & Spencer both taking 120,000 sq ft (11,150 sq m) anchor stores. Other tenants include Boots, which is taking 28,500 sq ft (2,650 sq m) of space, and Zara with 26,825 sq ft (2,490 sq m). Chesterton and Lunson Mitchenall are the scheme's letting agents.
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