Acquisition of development site in Haddington

The Royal Burgh of Haddington, which is located 19 miles east of Edinburgh, is the administrative centre for East Lothian, and has become an established commuter town due to its proximity to the A1 and Edinburgh.

The town has experienced significant housing growth over the past five years with approximately 1,500 homes either completed or under construction.

The site, which occupies a prominent position close to the A1, is allocated for retail and associated development in the Proposed Local Development Plan. It has a planning permission for a supermarket and petrol filling station. It is the intention of the Company to seek a new planning consent to permit a retail warehouse development.

There is a general shortage of retail warehouse space in East Lothian, particularly in Haddington, which means there is pent up demand from retailers who want to have representation in the town. The Investment Manager has a number of discussions ongoing with these retailers and is expecting to pre-lease the majority of the site, thereby reducing development risk to the Company in the process.

Once the development is completed, it is anticipated that it will provide a robust and attractive income return for the Company, secured against national retailers. The site acquisition will be funded from existing cash resources and debt facilities.

Calum Bruce, Director of Investment at Ediston Properties Limited, the Company’s Investment Manager, said: “We are always looking at different ways to create value for our shareholders and this development will allow us to do that. We have tracked this opportunity for some time and are confident that we can deliver an attractive income return for the Company that is significantly above market returns for similar developed assets.”