Tesco has sold a mega-shed development in Reading, Berkshire, to Legal & General Property for £110m.
The price is the highest achieved on a single industrial asset in the UK.
L&G is buying the supermarket giant’s 930,000 sq ft rail-connected distribution centre at the site of the former Courage Brewery in a sale-and-leaseback deal.
Tesco will lease the shed back for 25 years at a rent of £6.6m pa.
Invesco is understood to have had the scheme under offer before Christmas, but the deal collapsed.
Tesco’s property arm, Spen Hill Developments, bought the 58-acre former brewery site from Heineken for around £40m last April.
Planning permission for a new shed and vehicle maintenance unit to serve the South and South West was granted by Reading and Wokingham councils in September.
The warehouse is expected to open by Christmas 2012.
Morgan Williams acted for Tesco; Montagu Evans advised L&G.
All parties declined to comment.
nick.whitten@estatesgazette.com
