Legal & General Investment Management’s (LGIM) managed fund has acquired the Tesco Extra supermarket on Yarrow Road in Poole from clients of abrdn for £46.1m. The sale price reflects an effective net initial yield of 7.75%.
The site, which is located next to Tower Leisure Park, comprises a 95,000 sq ft store, a 16-pump petrol filling station and 599 car parking spaces.
The property is let to Tesco Stores for a further seven years and the rent is subject to annual uplifts in line with RPI 0-4%.
Rob Codling, senior fund manager at LGIM, said: “This is a great acquisition for the fund, which we believe will provide a strong return for our investors. The store is well located and its prospects of continued high-performance, suits the long-term investment objectives of our clients.”
Mark Girling, partner at Montagu Evans, who advised LGIM on the deal, added: “The purchase is attractive to our client firstly due to the large, strategically located site at the centre of the Poole Bournemouth conurbation, secondly being a strong trading store for both physical and online sales and thirdly, having the benefit of a high yielding, annually inflation proofed income secured on the investment grade credit of Tesco Stores Limited.”
Abrdn was advised by Morgan Williams.
