Aviva Investors has sold three long-income supermarkets to MDSR Investments for around £100m.
The portfolio comprises a Sainsbury’s store located on High Street, Sutton; a Morrisons supermarket at Elder Gate, Milton Keynes; and a Morrisons store on Sale Way, Leigh, Greater Manchester.
The properties have a combined WAULT of around 19 years and all stores benefit from RPI-linked rental indexation.
Mark Girling, partner at Montagu Evans, which acted for Aviva, said: “Blending a range of geographies, lease lengths, rental levels and credit strengths, this circa £100m transaction was structured to include a five-month delayed completion, which occurred just before Christmas, allowing our client to take advantage of additional rental income.
“The blended effective net initial yield of circa 6.25% represents an attractive result for Aviva Investors in the prevailing market, while providing the purchaser with a long, attractive, indexed income profile.”
Marcus Wood, head of retail & leisure investment at Cushman & Wakefield, which acted for MDSR Investments, said: “Despite the headwinds in the wider UK investment market, the grocery sector offers liquidity to vendors and attractive income profiles to investors.”
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