Aviva Investors has sold three UK supermarkets to Israeli capital fund MDSR Investments for around £100 mln (€116 mln).
The well-located properties are Sainsbury's in Sutton, Morrisons in Milton Keynes, and Morrisons in Leigh.
All three properties benefit from an average lease length of around 19 years and inflation-proofed rents.
The deal reflects the continued strength of the UK supermarket sector.
Mark Girling, partner at Montagu Evans, commented: ‘Blending a range of geographies, lease lengths, rental levels, and credit strengths, this £100 mln transaction was structured to include a 5-month delayed completion, which occurred just before Christmas, allowing our client to take advantage of additional rental income. The blended effective net initial yield of around 6.25% represents an attractive result for Aviva Investors in the prevailing market, whilst providing the purchaser with a long, attractive, indexed income profile.’
Marcus Wood, head of retail & leisure investment at Cushman & Wakefield, added: ‘Despite the headwinds in the wider UK investment market, the grocery sector offers liquidity to vendors and attractive income profiles to investors.’
Property consultants Montagu Evans acted for Aviva, while Cushman & Wakefield advised MDSR Investments.
