J Sainsbury Development (JSD), the development arm of the supermarket chain, is putting up for sale its first multilet town-centre development, on Queen Street in Cardiff, for £16.2m. The asking price reflects a net initial yield of 5.5%.
Occupiers at the scheme, which generates £946,500 pa, include Sainsbury’s Central, coffee chain Starbucks and fast-food outlet KFC.
Following the opening of the Cardiff scheme last month, JSD plans a UK-wide expansion programme and is scouring major city centres, including Manchester, Birmingham, Leeds and Liverpool, to find sites for schemes that will showcase the Sainsbury’s Central operation.
Tim Vallance, of Churston Heard, which is advising JSD with joint agent Fletcher Morgan, said: “JSD would love to sign up for schemes in these cities. However, once trading, they plan to sell most of their developments to fund further schemes.”
EGi News 09/10/00
