Wokingham Borough Council has bought a Waitrose building from John Lewis & Partners for £14.87m.
The purchase, which reflects a net initial yield of 4.25%, forms part of the council’s property acquisition and development programme focusing on Wokingham’s town centre.
The asset, located on London Road in Twyford, is let to Waitrose on a 20-year lease with 2% fixed annual increases.
The deal was one of a number of recent sales and leasebacks on Waitrose stores in the south.
Damon Emes, head of investment for Wokingham Borough Council, said: “The attraction of this purchase for the council is twofold. The addition of this asset to our steadily expanding investment portfolio will provide the council a predictable source of safe income, which can be used to fund local services for many years to come.
“More importantly, it demonstrates the council’s commitment to longer-term opportunities throughout the borough.”
Lunson Mitchenall acted for Wokingham Borough Council, and CBRE acted for the seller.
James Cogavin, investment director at Lunson Mitchenall, said: “The asset sits on an important 2.6-acre site in Twyford, which gives the council regeneration options in the future.
“The opening of Crossrail in Twyford will be a ‘game changer’ for the town, and it may open up the centre to interesting possibilities in the future for mixed use development.”
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