M&G Investments has agreed an £80M funding deal to support the 200K SF Rochdale Riverside retail scheme.

M&G has agreed a 250-year lease on the site and will grant a 35-year sublease back to the Council on completion of the scheme.

The move comes just weeks after Rochdale council — who are promoting the scheme developed by a joint venture between Genr8 and Kahima — repeated their insistence that anchor tenant Marks & Spencer stick to their agreement to lease a 50K SF store. Marks & Spencer said in November that they would pull out.

Genr8 has also completed lettings with retailers Boots, JD Sports and River Island, who will occupy a further 32K SF of accommodation. This takes the scheme to more than 60% let with works on site about to commence.

"This is an excellent example of where our pension fund client capital can be used to kick start regeneration schemes," M&G Real Estate Investment Director Shailendra Shah said.

“Working with Genr8, we’ve taken an innovative approach to funding this scheme, which will see its £80M cost paid back over a 35-year period, funded by the rental income received from the occupiers," Rochdale Council Chief Executive Steve Rumbelow said.

Cheetham & Mortimer are letting agents.