Supermarket and convenience store investments let to Tesco, Waitrose, Sainsbury’s and Co-operative are likely to attract strong interest at the Acuitus sale on 21 May.
The firm will offer 36 lots at the live streamed auction.
In Amersham, a freehold investment let to Waitrose produces £194,868 per annum and is being offered with a guide price of £2.2m. It is let until 2025 and there is a tenant option to renew the lease from September 2020 for 10 years at a commencing rent of £225,905 per annum, rising to £261,886 per annum in September 2025.
An 8,436 sq ft investment on Busby Road, Glasgow, which is primarily occupied by a Tesco Express is being offered with a guide price of £1.55-£1.65m. The remainder of the property is occupied by the Chest Heart and Stroke Scotland charity. The investment produces £115,000 per annum. The Tesco store is let on a recently extended lease until 2036 (subject to option) with RPI Rent Reviews in 2026 and 2021.
Also in Scotland, a Co-operative foodstore in Fraserburgh, Aberdeen, is being offered with a guide price of £950,000-£1.05m and produces current annual income of £101,305.
A freehold retail parade in Portland Road, Hove, which is let to Sainsbury’s and Costa with 12 flats let on long leases above is listed with a guide of £2.5m-£2.75m. It currently produces £180,773 per annum.
Acuitus chairman and auctioneer, Richard Auterac, comments: “Supermarket and convenience retail investments have continued to be in demand during the pandemic as their sector is underpinned by a fundamental need.
“We expect there to be considerable investor interest in these lots.”
However, the highest priced lot is not a supermarket, but a London development site guided at £4.75m. The 0.33-acre site opposite East Finchley underground station was due to be offered at the March Acuitus sale with the same guide price, but the ballroom auction had to be cancelled when the coronavirus lockdown was announced. The site, close to McDonald’s UK head office, has planning consent for 25 flats as well as offices on the ground and lower ground floors.
Other lots in the May sale include:
- Travelodge Hotel, Crewe, Cheshire: Virtual freehold hotel investment let to Travelodge Hotels Ltd until 2030. 56 bedrooms with 92 car parking spaces. Producing £194,044pax with CPI uplifts. Guide price: £2.5m
- Brooklands Park, Dinnington, Sheffield: Freehold industrial investment let to Ixion Ltd on five-year lease on a well established industrial estate. Producing £57,500pax with fixed uplift in 2023. Guide price: £700,000
- 12-18 High Road, East Finchley, London: Freehold development site with planning consent for 21 flats and offices. Well located opposite East Finchley underground Station and close to The Bishops Avenue. Guide price: £4.75m
The auction will take place on May 21st at 2pm, and will be broadcast via livestream on the Acuitus website. It will be open to remote bidding by telephone, internet and proxy.
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