UK asset manager M&G Real Estate is buying a Sainsbury’s superstore in the south of London for a record low yield.
UK asset manager M&G Real Estate is buying a Sainsbury’s superstore in the south of London for a record low yield.
Hermes Real Estate is selling the the asset for £68 mln (€84 mln), reflecting a net initial yield of 3.95%.
The 8,300 m2 store is located in East Dulwich and is let to Sainsbury’s Supermarket Limited on a 30-year lease with just under 25 years remaining. The store was refurbished in 2009.
'The sale of the East Dulwich store fits within our long-term investment strategy of portfolio diversification, both regionally across the UK and increasingly overseas,' said Chris Taylor, CEO of Hermes Real Estate. 'As part of this we are actively marketing strong assets to ensure we can recycle capital into higher yielding property where we are able to add value by deploying our asset management skills.'
JLL acted for Hermes Real Estate, while M&G Real Estate was represented by Lewis Ellis.
