November 2011 news archive

IM Properties invests £12 million in Chicago supermarket

71,248 sq ft supermarket in Vernon Hills, ChicagoIM Properties has invested more than £12 million in the forward purchase and development funding of a Chicago supermarket.

Working in partnership with Chicago based Bradford Real Estate Services, IM Properties has forward funded the development of the 71,248 sq ft supermarket in Vernon Hills, Chicago. 

The company has secured a 20 year lease of the property to Roundy’s Supermarket’s Incorporated at an annual rent in excess of £1 million.  A successful grocery brand headquartered in Wisconsin, Roundy’s operates under five retail banners, with the IM Properties supermarket trading as a Mariano’s Fresh Market.

The Supermarket is positioned on a prime site in the affluent Chicago commuter belt and is the second in a programmed expansion into Chicago by Roundy’s.

IM Properties managing director Tim Wooldridge is delighted to be expanding the company’s US portfolio with this latest deal:

“US based developers were struggling to secure funding from their banks and we recognised an opportunity to expand IM Properties’ portfolio in the US by forward funding retail developments such as this.  We have a member of the IM Properties team based full time in America and this has worked extremely well in helping us to secure this deal and build a close relationship with our tenant and development partner.

“Such has been the success of this first supermarket, that we are already progressing another property for Roundy’s in the nearby Palatine district of Chicago, once again with developer Bradford Real Estate Services.”

Focussing on the retail sector, IM Properties entered the US market in December 2007 with the purchase of a 135,000 sq ft retail store in Newport News, Virginia which is master-leased to Best Buy. This is a strategically located property at the heart of the 4.4m sq ft Patrick Henry Trade Area and the ‘Bond style’ Master-lease is a very rare commodity.  The company subsequently built a portfolio of bank ground leases in Illinois and Virginia. Concentrating on the strongest names in the US banking market, it actively sought value in banks at the height of the banking crisis.

IM Properties will continue to fund retail developments in Chicago and will retain the end product within its US portfolio. The company currently owns property valued at £50 million in the US and is focussed on strengthening this asset base with a target to increase the portfolio beyond £100 million in the medium term.