Legal & General Investment Management (LGIM) has acquired a 95,000sqft foodstore from Abrdn clients for its open-ended UK property fund.
LGIM said it has bought the Tesco Yarrow Road Poole property on behalf of its Managed Property Fund.
The manager said the price paid for the store, which includes a 16-pump petrol filling station and 599 car spaces, reflects an effective net initial yield of 7.75%.
The asset, let to supermarket chain Tesco for a further seven years, is located at the heart of the Poole Bournemouth conurbation, next to the destination Tower Leisure Park.
Rob Codling, senior fund manager at LGIM, said: “This is a great acquisition for the fund, which we believe will provide a strong return for our investors. The store is well located and its prospects of continued high-performance, suits the long-term investment objectives of our clients.”
Abrdn was advised by Morgan Williams. Montagu Evans advised L&G.
Mark Girling, a partner at Montagu Evans, said: “The purchase is attractive to our client firstly due to the large, strategically located site at the centre of the Poole Bournemouth conurbation, secondly being a strong trading store for both physical and online sales and thirdly, having the benefit of a high yielding, annually inflation proofed income secured on the investment grade credit of Tesco Stores Limited.”
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