Preston supermarket sold to REIT following completion of asset management strategy
Following the successful conclusion of its asset management strategy for the site, LGIM Real Assets has completed on the off market sale of Sainsbury’s, Preston for £54.4 million, reflecting a NIY of 5.1 per cent.
Located on Flintoff Way in Preston, the 106,500 sq ft Sainsbury’s has been sold to Supermarket Income REIT with an unexpired lease term of 22 years with annual, upward only, RPI-lined rent reviews. The property generates a passing rent of £2,963,046 pa.
“High quality, long let, RPI supermarkets are becoming rare, so this opportunity presented a unique situation. Despite the well-publicised growth of the discount food operators, retail investments occupied by the traditional ‘Big 4’ supermarket chains still command a high level of investor interest" said Tom Edson, a Director in Retail Capital Markets at Colliers International.
Originally developed in 1992, and extensively refurbished in 2010, Sainsbury's has a long history of trading from this prominent 10-acre site adjacent to Preston town centre. The supermarket comprises 105,601 sq ft of trading floorspace with a 12-pump petrol filling station, 520 parking spaces and purpose-built online fulfilment distribution docks, supporting Sainsbury's online grocery business across the region.
Mark Russell, Senior Fund Manager, LGIM Real Assets, added: “Following the successful conclusion of our asset management plan for this property, we are pleased to have completed this sale. The disposal also forms an important part of our overall strategy for the Managed Fund where we are reducing our exposure to retail.”
Colliers advised LGIM in the sale.