Legal & General, on behalf of its BMW (UK) Trustees fund, has sold a multilet retail parade in Clapham Junction, SW11, for £25m – a 3.99% yield.
The parade, at 36-46 St John’s Road, has been bought by a pension fund investor in an off-market deal. The parade is anchored by a Waitrose which provides some 66% of the income.
L&G fund manager Rob Codling said: “Against wider uncertainty related to Covid-19, the agreed price represented an exceptional opportunity for the fund within a generally challenging retail market. The sale demonstrates that, in the current environment, retail cannot be viewed as a single sector, with some elements – like food stores – continuing to generate considerable interest.
“Following the sale and in line with its asset management strategy, the fund will now aim to reinvest the profits into further diversifying its portfolio in sectors more accretive to future performance.”
Fawcett Mead advised L&G on the disposal.
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