UK supermarket group Sainsbury's has divested two distribution warehouses this month in sale-and-leaseback deals worth a total of about EUR 110 mln. Two months ago Sainsbury's announced it would not be selling off the majority of its substantial property holdings - mainly comprising its supermarket premises - as part of what transpired to be an abortive bid by Qatar-backed fund Delta II to acquire the retailer.
UK supermarket group Sainsbury's has divested two distribution warehouses this month in sale-and-leaseback deals worth a total of about EUR 110 mln. Two months ago Sainsbury's announced it would not be selling off the majority of its substantial property holdings - mainly comprising its supermarket premises - as part of what transpired to be an abortive bid by Qatar-backed fund Delta II to acquire the retailer.
Sainsbury's did, however, put four distribution depots on the market earlier this year. The Tamworth freehold distribution depot was acquired by BAE Systems Pension Scheme for almost EUR 54 mln, reflecting a net initial yield of 5.5%. The rent is linked to the retail price index (RPI). Kitchen La Frenais Morgan acted for the pension scheme and Cushman and Wakefield for Sainsbury's.
In mid November, Sainsbury's Supermarkets Limited exchanged contracts with Canada Life on the sale and leaseback of the 52,000 m2 Radial Park facility in Stoke on Trent. The price of EUR 56 mln reflects a net initial yield of 5.65%. Sainsbury's is leasing the property back for 25 years, commencing at a rent of £2.4 mln (EUR 3.3 mln) - approximately £4.25 per sq ft. The lease is subject to five yearly upward only rent reviews linked to the RPI.
Sainsbury's Supermarkets Limited were represented by Cushman & Wakefield and Canada Life was represented by Atisreal.
