European investor and asset manager Avignon Capital has bought two Waitrose supermarkets in Glasgow from Town Centre Securities.
Avignon Capital spent £23.2m on its purchases, located at West Retail Park on Glasgow Road in Milngavie and Byres Road in Glasgow’s West End. The deal marks its first foray into the supermarket sector.
The store on Glasgow Road measures 36,594 sq ft and is let until 2040 with a passing rent of £830,000 pa.
The second store, located at 363-381 Byres Road, totals 32,687 sq ft on a lease expiring in 2029. The passing rent is £595,000 pa.
Rod Leslie, director in the investment team at Savills Scotland, which advised Avignon Capital on the deal, said: “Both properties have strong underlying fundamentals, let to a major food occupier offering certainty of income and growth combined with future asset management opportunities.
“In an environment characterised by zero interest rates, food stores such as these, offering defensive income streams, are highly sought after amongst investors who recognise the sector’s resilience throughout the ongoing Covid-19 pandemic.”
Sheridan Property Consultants advised TCS.
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