Galileo Shopping America Trust has committed to developing Coastal Landing, a new development in Spring Hill, Florida.
Coastal Landing adjoins Coastal Way, which is an existing US JV asset that was acquired from CBL & Associates at IPO in October, 2003.
GSA through its USA joint venture company will develop project which comprises 151,000 sq ft of GLA, comprising anchor space of 120,000 sq. ft and small shop space of 31,000 sq ft.
The project has attracted significant pre-leasing interest from retailers with Marshalls having signed a lease for approximately 33,000 sq ft.
Terms have been agreed on a further four leases with nationally recognised retailers totalling approximately 85,000 sq ft. Lease agreements are expected to be executed on these deals in the near term.
When completed, the centre will feature an attractive retail offering with around 75-80% of owned GLA devoted to national anchor tenants.
The trust’s US JV partner New Plan Excel will be the development manager for the project while Hawkins Construction Inc will responsible for the majority of the construction works. Hawkins are a leading Florida based construction firm who are well known to New Plan having worked together previously on a number of construction projects.
The total cost of the development is budgeted at approximately $US27 million (100% US JV interest) including fees and interest costs. Completion is expected in mid 2007.
The estimated development yield is approximately 7.5% and a development profit of approximately $US3 million is expected for the US JV. This includes the uplift in value on the adjoining Coastal Way property, which is obtained by viewing the two completed assets together.
The initial land acquisition and associated development rights have been funded by the JV’s floating debt facility, as will the ongoing payments to fund the project works.
“Management believe that the targeted tenant mix will compliment the existing offering at Coastal Way and create a powerful overall retail offer between the two properties,” Galileo’s chief operating officer Susan MacDonald said.
“The remaining space will be leased to specialty retailers covering a range of food, apparel, services and general retail based offerings,” MacDonald added.
By Adam Parsons
