NFU Mutual Insurance Society has bought a Sainsbury’s supermarket and a Peugeot motor dealership in Brenton Road, Newscastle for £44.5m.
The 10.4-acre freehold site in Heaton was purchased from Hanro and the price reflects a net initial yield of 5% off a topped up rental.
The 100,000 sq ft Sainsbury’s supermarket was built in 2011 and includes a petrol filling station and a 425-space car park.
There are 26.2 years remaining on the lease and the current rent, which is RPI-linked at review, equates to £16.70 per sq ft.
The Peugeot motor dealership and separate car servicing facility have 11 years remaining on the leases, which have the manufacturer’s covenant. The current rent for the car showroom, which is also linked to the RPI, is £15.60 per sq ft.
David Hidderley of NFU Mutual said: “The mixed-use and RPI-indexed rents offer an attractive initial yield off a conservative base.”
NFU Mutual was advised by HSM and GCW; Knight Frank and Gavin Black & Co acted for Hanro.
