Alpha Real Capital has sold its 66,000 sq ft Sainsbury’s food store in Sudbury, Suffolk, to private clients of Mutual Finance for £35.4m.
The deal reflected a 4.72% net initial yield. The store is occupied on an 18-year unexpired lease, with a current rent of around £1.8m per annum, capped and collared at 3% and 1% per annum.
Debt finance for the acquisition was arranged by Mutual Finance.
Raed Hanna, managing director of Mutual Finance, said the investment will provide “very well secured long-term income, with the added benefits of annual RPI linked rent reviews”.
Oliver Spero, director at Cyril Leonard, which advised the purchasers on the deal, said: “As one of the stand-out performers during the pandemic, the grocery sector is subject to strong demand from investors on the hunt for income-backed security.”
Hampson Wall advised Alpha Real Capital.
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