M&G buys Sainsbury's superstore at 4% yield

UK institutional investor M&G Real Estate has acquired a Sainsbury’s superstore in the Eastern English town of Brentwood.

The retail property was sold by Hermes Real Estate Investment Management Limited (HREIML) for almost £78 mln (€93 mln), representing a yield of 4.05%.

The 9,700 m2 food superstore in the centre of Brentwood, Essex is let to Sainsbury’s Supermarkets for a further 25 years and is subject to annual rent reviews linked to RPI (Retail Price Index).

The property was refurbished in 2008, has parking for over 400 cars and has a catchment of around 300,000 people within a 10-kilometre radius.

Jones Lang LaSalle acted on behalf of HREIML. M&G Real Estate was advised by GL Hearn.