Cheltenham supermarket sold in £60m-plus deal
By Matt Hall | 14th October 2019
One of Gloucestershire's biggest supermarkets has been sold by Colliers International on behalf of Legal & General.
The sale to Supermarket Income REIT sees the 97,434 sq ft Sainsbury's store on Tewkesbury Road sold for a mouth-watering £60.4 million, reflecting a net initial yield (NIY) of 5.25 per cent.
The site is let to Sainsbury's Supermarkets Limited, expiring in June 2032, and generates a current passing rent of more than £3.3 million per annum.
Originally developed in the 1980s, the store was extensively refurbished and extended in 2007. The deal also includes the 12-pump petrol filling station and more than 390 parking spaces.
Tom Edson, head of out of town investment at Colliers, said: "We are pleased to have been able to see this sale through to fruition on behalf of our client Legal & General.
"Although this asset is a good example of a regionally important superstore, a combination of the over rent, short remaining lease term and an attractive offer from the purchaser made the opportunity too good for our client to pass up."
Ben Green, director of Atrato Capital, the investment advisor to Supermarket Income REIT, said: "With strong fundamentals, this Sainsbury's supermarket is an excellent addition to our growing portfolio of omnichannel stores and provides further investment diversification."
Copyright 2019 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.