Aviva Investors has sold three UK supermarkets to MDSR Investments for £100m.
The portfolio comprises a Sainsbury’s store in Sutton, a Morrisons store in Milton Keynes and a Morrisons store in Leigh, Greater Manchester. The properties offer a combined WAULT of circa 19 years and all stores benefit from RPI-linked rental indexation.
Mark Girling, partner at Montagu Evans, which acted for Aviva on the sale, said: “Blending a range of geographies, lease lengths, rental levels and credit strengths, this circa £100m transaction was structured to include a five-month delayed completion, which occurred just before Christmas, allowing our client to take advantage of additional rental income.
“The blended effective net initial yield of circa 6.25% represents an attractive result for Aviva Investors in the prevailing market, whilst providing the purchaser with a long, attractive, indexed income profile.”
Marcus Wood, head of retail and leisure investment at Cushman & Wakefield, which advised MDSR Investments on the purchase, added: “Despite the headwinds in the wider UK investment market, the grocery sector offers liquidity to vendors and attractive income profiles to investors.”
