Acting on behalf Aberdeen Standard Investments, global real estate advisor Colliers International has secured the sale of the Asda foodstore site in Altrincham, Greater Manchester for £22.525 million.
The 5.83-acre site has been sold to Greater Manchester Pension Fund, reflecting a net initial yield of 4.75%, based on the expected ‘topped up’ rental income following the forthcoming 2020 rent review.
Situated in a prominent position within an established out-of-town retail destination in the affluent Manchester commuter town of Altrincham, the foodstore comprises 71,408 sq ft with 385 surface car parking spaces and on-site petrol filling station.
The modern purpose-built foodstore is let to Asda Stores Limited on a 25-year lease, with 21 years unexpired, and generates a current passing rent of £1,001,000 pa, which is estimated to increase to £1,140,255 pa following next year’s rent review.
Tom Edson, a Director in Colliers’ Retail Capital Markets team, who advised Aberdeen Standard on the deal, said: “As the second largest grocery retailer in the UK with a 15.4% market share, Asda investments are one of the rarest supermarket commodities. This, combined with the attractive inflation-linked long lease on a store located in an affluent Manchester commuter town were compelling reasons for the purchaser to acquire the property.”
Haseeb Hassan, Senior Portfolio Manager at Aberdeen Standard Investments, added: “From initially funding this as a development opportunity almost five years ago, we were delighted to sell the asset in line with our strategy for the fund and realise the capital.”
David Winterbottom at Avison Young added: “Our client is delighted with the acquisition of the investment which offers long term income to the Asda benefiting from fixed inflationary rental uplifts throughout the lease. We have been keen to invest in some ‘defence stock’ during these uncertain times and this offers the criteria we have been looking for.”
Colliers advised Aberdeen Standard on the sale. GMPF was advised by Avison Young.