British Land sells EUR 148m of UK foodstores

UK REIT British Land has sold seven foodstores jointly held with Tesco and Sainsbury's for £118 mln (EUR 148 mln) to institutional purchasers at net initial yields of between 4.95% and 5.7%, in line with March valuations.

British Land's share of the deal amounted to £62 mln.

Tesco in Wembley (Tesco JV) was bought by private clients of Orchard Street for £62 mln representing a net initial yield of 5.5%, while Sainsbury’s in Leicester (Sainsbury’s JV) was sold to Sainsbury’s for £22 mln representing a net initial yield of 5.2%. Sainsbury’s in Chadwell Heath (Sainsbury’s JV), Waitrose in Frimley (Sainsbury’s JV) and Aldi in Gorton were sold to clients of CBRE Global Investors for £19 mln, £10 mln and £3 mln respectively, representing net initial yields of 5.2%, 4.95% and 5.7%. Co-Op stores in Barton and Cleethorpes were bought by consumer co-operative Lincolnshire Corn Exchange & Markets for £3 million representing a net initial yield of 5.4%.

British Land is the largest owner of foodstores outside the occupiers themselves with £2.5 bn of foodstores under management, of which its share is £1.3 bn.

British Land was represented by Morgan Williams, Jones Lang LaSalle and Colliers International.