Cushman & Wakefield Investors (“CWI”) acquired two indexed linked property assets in the first quarter on behalf of West Sussex Pension Fund for £19.4m.
A Tesco Superstore at St Ives, Cornwall was acquired by sale and leaseback for £11.8m at yield of 4.9%. The 30,965 sq.ft. store is let to Tesco for a 20 year lease term with a tenant break option at the 5th year. Morgan Williams acted on behalf of Tesco Stores Limited. Le Gros Solicitors acted with CWI on the acquisition.
The Fund also acquired Osborn House, in Middlesex Street, City of London, E1 for £7.6m at an initial yield of 6% with an indexed uplift due in June 2013. The sole tenant of the 19,000 sq.ft. property is Oval Insurance Brokers. The property is within walking distance of Liverpool Street Station. Crossland Otter Hunt acted on behalf of CWI and MBH LLP acted on behalf of the vendor.
Peter Balfour, Head of UK Investment Management at CWI said, “Since November CWI has purchased three assets for the pension fund, totalling over £36million. The latest properties purchased offer robust underlying value and provide an attractive and growing income return for the Pension Fund. We continue to look for similar income producing assets for our client in London, the South East and key regional centres.”
