DTZ Investors has acquired four superstores from grocery retailer Asda for £101.4m in an off-market deal.
The stores, which are located in London, Birmingham, Coventry and Leeds, are let to Asda on FR&I terms and a minimum 25-year term subject to annually indexed reviews.
Ben Haller, director at DTZ Investors, said: “We continue to see value in the essential retail sector. This deal is a great example of our commitment to the strategy, which now exceeds £1.5bn in the UK. We have worked closely with Asda to assemble a portfolio that aligns to our investment objectives of allocating capital to the strongest markets.
“All stores are embedded within large dynamic economies, fronting busy arterial routes and surrounded by dense shopper catchments. They are individually underwritten on dominant trade metrics and are well underpinned by alternative uses, so we expect the portfolio to deliver strong inflation-hedged income alongside long term capital growth.”
Will Robertson, head of national investment at BNP Paribas Real Estate, added: “We are delighted to have advised DTZ Investors on this landmark transaction in the grocery sector. Supermarkets are a resilient asset class which can offer outstanding risk adjusted returns when underwritten by strong store performance in supply constrained markets. The omni-channel stores sourced in this off-market portfolio tick all the boxes in terms of performance and real estate fundamentals, and we congratulate DTZ Investors on the successful conclusion of a complex deal.”
BNP Paribas Real Estate acted for DTZ Investors and HampsonWall supported the occupational underwrite. Eastdil represented Asda.
