The retail park was bought by Ediston Property Investment Company, which pans to build another unit that could be turned into a restaurant
Sunderland’s Pallion Retail Park could become home to a drive-thru Costa Coffee, after being bought by new owners for £25.6m.
The new owner of the park, Ediston Property Investment Company, said the new coffee shop would improve the park’s amenities and lead to shoppers spending more time there.
Pallion is already home to B&M, Matalan, Dunelm, Poundstretcher, Iceland and Wallpaper Warehouse. The average unexpired lease term is eight years.
Along with the addition of Costa Coffee to the site, Ediston is also planning on developing a new unit which could be used as a restaurant.
Calum Bruce, manager at Ediston Properties, said: “There is planning consent already in place to develop a unit of 3,500sq ft in the lower car park. That could be a restaurant unit or another retailer if we find somebody with a use for that type of space.”
Mr Bruce added: “What we will do with Sunderland is we will acquire it and there are a number of asset management initiatives that we can look at doing which might include lease re-gears.
“There is a vacant unit we would look to let and there is also the potential to develop a Costa Coffee for example in the car park. All these things not only improve the income of the asset but they also improve the capital value of the asset as well.”
Ediston is also looking for a new tenant to occupy a 4,000sq ft unit, which is currently vacant. Pallion itself spance 131,349sq ft across nine units.
Along with the development opportunities available at the site Ediston was attracted to the retail park because of the nearby developments happening nearby. The construction of the New Wear Bridge and the Sunderland Strategic Transport Corridor are both happening in the area and will improve access to Pallion.
Ediston acquired the commercial property from Europa Capital Partners, after selling Cutlers Gate office complex in Sheffield for £20.2m. Cutlers Gate is made up of 61,638sq ft of modern offices that are currently let to Capita Business Services, until December 2039.
Along with proceeds from the sale, Ediston also used £4.5m from debt facilities provided by Aviva Commerical Finance to help fund the acquisition.
BY: JONATHON MANNING
(Photo: Ediston Property Investment Company)