Scotch Corner Designer Village is planning to raise £25.5 million through an initial public offering on the Aquis Exchange to help finance the next stage of construction of its planned outlet retail and leisure destination in North Yorkshire.
The development will be located at Scotch Corner, a prominent junction on the A1(M) near Richmond, and is widely recognised as a key gateway between the North East, Yorkshire and the North West. The site is visible to traffic as far away as the M6 motorway, roughly 50 miles away.
The project spans a 50-acre site with full planning permission for approximately 182,500 square feet of branded outlet retail units, cafés and restaurants, alongside landscaped public spaces. Initial groundworks have already been completed, with the village expected to open in autumn 2027.
IPO to fund main construction phase
The planned equity raise of £25.5 million will come from the issue of new shares in Scotch Corner Designer Village (SCDV) as part of its listing on the Aquis market. The funds will be used primarily to finance the main construction phase of the development.
In addition to the IPO proceeds, the company is seeking £33.2 million through 14% secured mezzanine loan notes. The remainder of the project’s funding will be provided through £67 million in senior debt, which has already been secured.
The founders will contribute the existing freehold site to the company at admission in exchange for shares valued at £16.5 million at the issue price of 250 pence per share, representing roughly 40% of the company. This reflects a modest discount to the £43.6 million valuation placed on the site by Savills after accounting for approximately £26 million of accrued debt.
Development already largely pre-let
Developers say the scheme is already about 70% pre-let, with a further 11% of space currently at heads-of-terms stage with prospective tenants.
Outlet villages are regarded as one of the faster-growing segments within the retail sector, and the Scotch Corner project aims to establish a major outlet destination in the North of England. The site also offers scope for future expansion across both retail and leisure uses.
The development sits within a catchment area of around 4.5 million people within a one-hour drive, while approximately 29 million vehicles pass through Scotch Corner each year.
Brands confirmed for the village include M&S, Superdry, Tommy Hilfiger, Calvin Klein and Wagamama, alongside around 60 additional retailers and hospitality operators.
Projected value and returns
The scheme is expected to reach a gross development value of roughly £169 million at completion, including land earmarked for a second phase of expansion.
Through the Aquis listing, the project aims to create £42 million in equity value, comprising £16.5 million contributed through the land and £25.5 million raised through the IPO. Phase one will be funded through the mezzanine facility arranged around the time of listing, together with the £67 million senior debt package.
Developers estimate the project could generate an internal rate of return of around 21.75% per year over a 5.5-year period, with an equity multiple of 2.58 times — rising to 2.88 times when surplus income is included. The forecast assumes refinancing once the site becomes operational following the construction phase and a four-year stabilisation period.
The project is expected to become free cash flow positive about 12 months after the IPO. Dividends to shareholders are projected to begin from 2027 and increase in line with rental income as the outlet village matures.
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