A 45,000 sq ft supermarket in North Lincolnshire occupied by Tesco discount chain Jack’s will be the lot offered with the highest guide price at Acuitus’s October auction.
The store in Immingham, which opened in September 2018 as part of Tesco’s attempts to take on Aldi and Lidl, is to be offered with a guide price of £9m.
The property currently generates an annual income of £771,007. A sale at the guide price would equate to a yield of 8.5%
Tesco unveiled its Jack’s concept amid great fanfare last September as part of a plan to take market share back from its German discount rivals.
However, last month it announced it was turning its largest Jack’s store in Rawtenstall, Lancashire, back into an original Tesco concept supermarket.
Acuitus said the Immingham store is let to Tesco on a 25-year lease from September 2014 with a tenant break option in 2029 and the lease is subject to five-yearly, upward-only, RPI-linked rent reviews. It stands on a 4.09-acre site with parking for 300 cars.
“It’s a good opportunity to secure an income stream from a strong covenant and a site which has long-term potential,” said David Margolis, investment director and auctioneer at Acuitus.
According to Knight Frank’s 2019 Retail Property Outlook, food stores with RPI-linked leases in prime areas are currently trading at an average of 4.25%. In March, a 36,000 sq ft supermarket in West Sussex sold for £3.8m, reflecting a yield of 6.75%.
The store is one of 60 lots with a total income of more than £4.8m to be sold at the auction on 24 October at the Montcalm Hotel, W1.
