British Land offloads £100m worth of food stores Friday, 21st September 2012

British Land has sold off seven food stores for a total of £118 million to institutional purchasers at net initial yields of between 4.95 per cent 5.7 per cent.

Tesco in Wembley was sold to a private buyer for £61.9 million, representing a net initial yield of 5.5 per cent. Sainsbury’s in Leicester was sold to Sainsbury’s for £21.7 million, representing a net initial yield of 5.2 per cent.

Sainsbury’s in Chadwell Heath, Waitrose in Frimley and Aldi in Gorton were some to CBRE Global Investors for £19.2 million, £9.6 million and £3.2 million respectively, representing net initial yields of 5.2 per cent, 4.95 per cent and 5.7 per cent.

Co-Op stores in Barton and Cleethorpes were snapped up by Lincolnshire Corn Exchange & Markets Ltd £2.9 million, representing a net initial yield of 5.4 per cent.

Charles Maudsley, Head of Retail for British Land, said: “On the back of good demand in the foodstore sector, we have sold over £100 million of foodstore investments featuring a variety of ages, rent levels and lease expires.  The sales were in line with, or above, our March valuations, reflecting the income security and growth prospects for the various stores.  This is very much in line with our stated strategy of capital recycling to maximise our portfolio returns.”

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Posted in Deals and Takeovers, Food, Retail Property Tagged Sainsbury's, Tesco, The Co-Operative Group, CBRE, Charles Maudsley, British Land, Retail Property, my, retail, media, news, Deals & Rumours