Asset manager Jade Merchant Bank has bought a 149,000 sq ft Tesco Extra store and ancillary retail parade in Oldham for £54m, on behalf of Kuwait Business Town Real Estate Company.
Previously held by a Qatari institutional investor, also a client of Jade Merchant Bank, the supermarket is located on Huddersfield Road and is leased to Tesco on a 13-year unexpired term.
It marks the Kuwait-based property company’s debut UK investment.
The investment was financed by Abu Dhabi Islamic Bank, which provided a Shariah compliant senior leverage facility to the investor.
The seller had previously acquired the store and retail parade for more than £50m from Bowmer & Kirkland in 2018.
Feras Al-Kandari, chairman of Jade Merchant Bank, said: “The appetite amongst our GCC investors remains strong for quality UK real estate. We are particularly pleased to have brought a new equity investor from Kuwait to the UK market, demonstrating the trust that our clients have in the Jade Merchant Bank team.”
Jade Merchant Bank chief executive Sam Broadhead and chief business development officer Amr Kenawy jointly stated that the team is “considering further inbound UK investment” for its client portfolio.
“The UK supermarket sector is one which has shown resilience over the past year, with stores quickly adapting to changing consumer demands,” added investment director Stuart Jarvis.
“We expect to see further deal flow in this sector and look forward to reviewing on behalf of our clients, whose demand for well-let UK real estate continues to grow.”
To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews
