Food Store Investment
Liverpool : Queens Drive Retail Park
Acting on behalf of LondonMetric, Fawcett Mead are delighted to have advised on the sale of this well let food store investment in Liverpool.
- Food store investment let to Aldi and M&S Foodhall
- Passing Rent: £506,000 per annum
- Price: £10,200,000
- Net Initial Yield: 4.65%
The 29,000 sq ft property is let to M&S Foodhall until 2031 and Aldi until 2036, offering a WAULT of approximately 12.5 years.
Jonathan Mills commented "We were delighted to have completed on this off market sale to a well known food store investor who we targeted specifically for this asset. This follows on from the recent successful sales of M&S Foodhalls in Haslemere and Ferndown for LondonMetric, demonstrating the continued appetite for well let food store investments and is a further vote of confidence in the attractiveness of the M&S covenant."
Ferndown & Haslemere : M&S Portfolio
Acting on behalf of LondonMetric, Fawcett Mead have sold the freehold interest in two foodstores let to Marks & Spencer PLC. Both properties offer index linked rent reviews and provide a WAULT of 15 years.
- Portfolio of two M&S food stores in Ferndown and Haslemere
- Price: £14,860,000
- Net Initial Yield: 4.00%
Jonathan Mills commented "We are pleased to have completed on this off market sale to a local authority purchaser, which demonstrates the continued appetite for foodstore investment opportunities, particularly those that offer some form of indexation.”
Swindon : Taw Hill
Fawcett Mead are pleased to have advised Savills Investment Management on the sale of this convenience parade in Swindon.
- Neighbourhood Convenience Parade Investment Secured to Co-Op for a further 17.2 years with RPI linked uplifts.
- Passing Rent: £196,996
- Price: £3,390,000
- Net Initial Yield: 5.46%
The subject property is let to The Midcounties Co-Operative Limited on Full Repairing and Insuring terms for a period of 25 years commencing on 19th December 2012. The rent is subject to five-yearly rent reviews linked to RPI with a collar of 2.00% and a cap at 3.25%.
Graham Fawcett commented "The sale of this property went through incredibly quickly together with Bicester to a reliable and efficient purchaser. Both parties were delighted with the result."
Bicester : Bure Park
Fawcett Mead are pleased to have advised Savills Investment Management on the disposal of the Bure Park convenience parade.
- Neighbourhood Convenience Parade Investment Secured to Co-Op.
- Passing Rent: £108,298
- Price: £1,860,000
- Net Initial Yield: 5.48%
The convenience parade is let to Midcounties Co-Operative Limited with annual uplifts until 2037. The rent is subject to five-yearly rent reviews linked to RPI with a collar of 2.00% and a cap at 3.25% applied annually.
Graham Fawcett commented "The sale of this property went through incredibly quickly together with Swindon to a reliable and efficient purchaser. Both parties were delighted with the result."
Guildford : 148-150 High Street
Fawcett Mead are delighted to have advised Legal & General Investment Management on the sale of 148-150 High Street, Guildford. The 32,000 sq ft foodstore is arranged over ground and two upper floors and is let entirely to Sainsburys until 2032.
- Prime high street supermarket let to Sainsburys until 2032.
- Passing Rent: £805,000 per annum
- Price: £14,800,000
- Net Initial Yield: 5.10%
The £14,800,000 sale price reflects a NIY of 5.10%.
Jonathan Mills commented "We were delighted to complete on this off market sale to an overseas investor who we had identified as having a specific requirement that matched the subject propertys characteristics. This follows on from our sale of the Waitrose in Clapham Junction for Legal & General and demonstrates the continued appetite for high street foodstore investments."
Stratford-Upon-Avon : 24-26 Bridge Street
Acting on behalf of private property company, Fawcett Mead have purchased the freehold interest of 24/26 Bridge Street, Stratford-Upon-Avon. The property comprises a prime convenience store let to Tesco Express with an unexpired term of 9 years, together with a vacant former Laura Ashley offering asset management and development potential.
- A prime convenience store together with a former Laura Ashley offering asset management and development potential.
- Price: £3,750,000
Tom Heptonstall commented "We are very pleased to have secured this asset in Stratford-upon-Avon and look forward to working with our client to enhance the value of the former Laura Ashley unit, whilst benefitting from the secure income from the Tesco unit.
Many thanks to TW Keil who acted for the vendor.
Fawcett Mead are pleased to have advised on the disposal of 7 Co Operative food stores located throughout the UK.
- Fawcett Mead are delighted to have advised on the sale of this food store portfolio to LXI REIT PLC. The portfolio was exchanged within just 9 days.
- Price: Quoting £23.45m
James Mead commented "We are delighted to have advised Investec on this supermarket portfolio. The seven food stores represented a secure, index linked group of long leases to the undoubted covenant of the CO-OP. The level of interest was very good and with a number of new entrants to the market reviewing and bidding on the assets".
Clapham Junction : 36-46 St Johns Road
Fawcett Mead has recently advised Legal & General on the sale of this prime, multi-let retail parade in Clapham Junction. 66% of the current income is secured to Waitrose until 2029. The sale price of £25,000,000, reflects a Net Initial Yield of 3.99%.
- 100% prime retail investment on St John’s Road, Clapham Junction. Let to Waitrose, Superdrug and L’Occitane
- Passing Rent: £1,066,745 per annum
- Price: £25,000,000
- Net Initial Yield: 3.99%
Jonathan Mills commented: “We are delighted to have completed successfully on this sale at an attractive exit price for Legal & General, in evidence of the continued attractiveness of the foodstore market in an otherwise very uncertain environment. The property was sold off market to a pension fund investor who we had identified as having a specific requirement for an investment that matched the subject property’s characteristics. The sale follows on from our £138m acquisition of Shopstop, Clapham Junction for DTZI and clearly demonstrates the continued investor appetite for Central London retail investment opportunities.”
Romford : Iceland
- Fawcett Mead are pleased to complete a renewal to Iceland in Romford on behalf of Nuveen Real Estate. The tenant extended their lease for a further 5 years at a rent of £95,000 per annum.
Swindon : Cavendish Square
Acting on behalf of CBRE Global Investors, Fawcett Mead has sold this retail investment to Swindon Borough Council. The purchase price of £3,127,000 reflected a NIY of 6%. The property is let to Mid Counties Co-op and Lloyds Pharmacy with a WAULT of 14 years.
- Freehold supermarket and pharmacy investment
- Passing Rent: £199,800 per annum
- Price: £3,127,000
- Net Initial Yield: 6.0%
Richard Bashford commented: "This property is located in a densely populated busy residential suburb and occupies a large site area. It attracted a strong level of interest and competitive bidding".
Swindon Borough Council was represented by Hartnell Taylor Cook.
Bracknell : Co-op, Sparrowhawk Way
Fawcett Mead has recently acted on the sale of this new build convenience investment on behalf of a developer client. The property is situated in the centre of a major new residential development that has seen more than 1,300 homes completed in the last 10 years. The property was sold off market and the sale coincided with Practical Completion. The purchaser was represented by Christopher Dee.
- New convenience store let to Co-op on a 15 year lease. Five yearly rent reviews to CPI with a collar and cap of 1 and 3% pa compounded.
- Passing Rent: £94,000 per annum
- Price: £1,770,000
- Net Initial Yield: 5.00%