Legal & General sells Sainsbury’s in Cheltenham for £60.4million

The specialist retail investment team at Colliers International has completed the sale of the Sainsbury’s, Tewkesbury Road, Cheltenham on behalf of Legal & General to Supermarket Income REIT.

The sale sees the 97,434 sq ft Sainsbury’s store and petrol filling station sold for £60.4 million, reflecting a net initial yield (NIY) of 5.25%. The asset is let to Sainsbury’s Supermarkets Limited, expiring in June 2032, and generates a current passing rent of £3,338,216 per annum.

Tom Edson, Head of Out of Town Investment at Colliers International added: “We are pleased to have been able to see this sale through to fruition on behalf of our client Legal & General. Although this asset is a good example of a regionally important superstore, a combination of the over rent, short remaining lease term and an attractive offer from the purchaser made the opportunity too good for our client to pass up.”