UK property developer and investor Terrace Hill has signed a pre-lease and development agreement with Asda to build a new supermarket on the company's site in Skelton, East Cleveland.

Pre-let to Asda on a 25-year lease term, the proposed scheme will comprise a new supermarket with a net sales area of 2,300 m2 and a petrol filling station.

The planning application for the development is due to be determined in the autumn and the store could be open by end-2012.

'This agreement with Asda at Skelton is another example of our ability to attract major foodstore occupiers to our retail sites,' said Duncan McEwan, head of Retail at Terrace Hill. 'We have a growing pipeline of foodstore development sites throughout the Country which continue to attract competitive interest from retailers and which will deliver strong returns for our shareholders.ì

AIM-listed Terrace Hill is active in commercial development and residential investment, with offices in London, Glasgow, Teesside, Bristol and Manchester.