Legal & General, on behalf of its BMW (UK) Trustees fund, has sold a retail parade anchored by grocer Waitrose and a pharmacy at London's Clapham Junction for £25 mln (€28 mln).
Divested off market to a pension fund investor in a deal reflecting an initial net yield of 3.99%, the property at 36-46 St John’s Road comprises a multi-let retail parade with Waitrose responsible for 66% of the income.
Rob Codling, fund manager at Legal & General, said: 'Against wider uncertainty related to Covid-19, the agreed price represented an exceptional opportunity for the fund within a generally challenging retail market.
'The sale demonstrates that, in the current environment, retail cannot be viewed as a single sector, with some elements – like food stores – continuing to generate considerable interest. Following the sale and in line with its asset management strategy, the fund will now aim to reinvest the profits into further diversifying its portfolio in sectors more accretive to future performance.'
Fawcett Mead advised Legal & General on the sale.
Jonathan Mills, director at Fawcett Mead, said: 'We are delighted to have completed successfully on this sale at an attractive exit price for Legal & General, clearly demonstrating the continued attractiveness of the foodstore market in an otherwise very uncertain environment.
'The fact that the property is majority-let to a foodstore operator and pharmacy chain, both deemed as providing essential retail services, was undoubtedly a key driver for the transaction completing successfully. The property was sold off market to a pension fund investor who we had identified as having a specific requirement for an investment that matched the subject property’s characteristics.'
