The agreement with developer Stanhope is one of the only significant UK retail forward fundings to take place over the last five years, British Land said, and represents a yield on cost of between 6.75 and 7%.
The developer plans to start work 'imminently' and complete by spring 2014. British Land will own the scheme outright on completion.
The open air scheme, on the site of Hereford’s former cattle market, will comprise 22 retail units, seven restaurants and a six-screen cinema. More than 50% of the space has already been pre-let. Tenants include Debenhams, Waitrose, Next, TK Maxx and Odeon Cinemas.