Terrace Hill said it will complete the sale of development land in Heaton Park, Manchester to Sainsbury's later this month.
In preliminary results issued today for the year to the end of September the listed developer said it had agreed vacant possession of retail units at Heaton Park which will be demolished to make way for an enlarged Sainsbury's that it will build for the supermarket group.
Terrace Hill paid Standard Life £5.7m for the small retail park around the existing Sainsbury's store. The value of the sale on to Sainsbury's was not disclosed. The developer won planning consent in March to more than double the supermarket from 60,000 sq ft to 135,000 sq ft. Units occupied by Wickes, Currys and American Golf will be demolished to make way for the enlarged food store. Wickes and Currys will close but American Golf is relocating to another unit on the retail park.
The developer opened its first Manchester office this year, headed by former Maple Grove director Andy Lavin.
Across the group, Terrace Hill said net asset value rose 7.2% to £102.6m from £95.8m in October 2009. Profit before tax was £8.4m compared to a loss of £26.7m in 2009.
Borrowing has reduced from 102.4% of the value of the portfolio in October 2009 to 88.4% as at 30 September.
Robert Adair, chairman of Terrace Hill, said: "Although economic uncertainty continues to affect our markets we have shown our ability to generate strong, low risk returns by concentrating on our core expertise of pre-let development, particularly foodstores and central London offices, and residential asset management. In the coming year I am therefore confident that we will be able to continue to perform well and add value to the business."