DTZ Investors has snapped up a prime supermarket in the affluent North London borough of Islington, from UK real estate investment manager Lothbury for £56.2 mln (€65.5 mln).
The 1.0-hectare site has been fully occupied by grocery giant Sainsbury’s since 1984.
The 6,264 m2 EPC B-rated building includes 3,252 m2 of sales area and a large 131-space surface car park.
Sainsbury's recently inked a new 20-year reversionary lease with an expiration date of 24 March 2044 that also includes green lease terms, annual indexed rent reviews, and a complete parent company guarantee.
Ben Haller, director at DTZ Investors, said: ‘This asset is the latest in our investment programme through 2023. There are opportunities amongst the wider market challenges with this core asset offering long and strong income with the potential for significant capital enhancement in the future.’
Freddie MacColl, partner at Knight Frank, added: ‘We are delighted to have advised DTZ Investors on this core supermarket with rare and exceptional characteristics. We have now acted for DTZ Investors on two deals this year where they’ve performed on a 10-working day timeframe and at the agreed price on both occasions.’
The store has a noticeable Liverpool Road façade and is next to the Angel Shopping Centre, which offers retail and recreational options. Sainsbury's is rumoured to be considering making a sizable investment in the store after the reversionary lease has been signed.
Furthermore, this underdeveloped site in the centre of Islington has excellent prospects for future development.
Islington is a densely populated and affluent Borough in North London with the food retail provision dominated by this supermarket.
Knight Frank acted for DTZ Investors whilst Savills acted for the vendor.
