British Land set to re-develop Hereford city centre

Property group British Land has signed a major forward funding agreement that will enable the development of the 310,000 sq ft Old Market scheme in Hereford city centre.

The £90m deal is one of the only significant UK retail forward fundings to take place over the last five years and represents a yield on cost of between 6.75 and 7%, the group said.

The scheme is located on the site of Hereford's former cattle market and will comprise 22 retail units, seven restaurants and a six-screen Odeon cinema. It will be anchored by a huge three-storey, 84,000 aq ft Debenhams store. Other shops include Next, TK Maxx, Frankie & Benny's and Waitrose. Over 50% of the space has already been pre-let.

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Richard Wise, Head of Retail Development for British Land, said: "We believe retail development adds significant incremental value and are replenishing our pipeline to build growth and opportunity by assembling an exceptional, diversified portfolio of dominant assets.

"We are one of a very small group that has the ability, experience, financial strength and scale and strategy to capitalise on future demand for the right space."

The share price dipped 0.1% to 521p by 13:22.

NR