UBS Asset Management has purchased a Sainsbury’s supermarket in Hinckley, Leicestershire, from Osprey Equity Partners for £45m.
It made the acquisition on behalf of the UBS Long Income UK Property Fund, which targets a net income return of 5% pa.
The 105,000 sq ft building is let to Sainsbury’s on a long lease running to 2041. The lease is subject to five-yearly uncapped RPI upwards-only rent reviews.
Osprey acquired the asset in a £40m forward funding deal agreed in 2013. The building was developed by Tin Hat, a joint venture between Ashcroft and Wilson Bowden, and completed in 2015.
Gijsbert van Riemsdijk, head of transactions Europe at UBS, said: “This acquisition offered the opportunity for the fund to gain exposure to the UK’s supermarket sector.
“The move has proved particularly opportune against the backdrop of the sector’s resilience throughout the Covid-19-related volatility. Sainsbury’s represents an excellent covenant.”
GCW acted for UBS-AM and Cushman & Wakefield and Prime Retail acted for Osprey.
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