LaSalle Investment Management, the global real estate investment manager, has acquired a Morrisons supermarket in Plymouth for £22.5 million from an institutional investor on behalf of an existing UK Custom Account client.
The purpose-built supermarket comprises approximately 62,000 square feet in lettable area and occupies a prominent six-acre site on Outland Road, one of Plymouth’s principal arterial routes. The asset is fully let to Morrisons on a lease with 21 years remaining and CPI-linked rent reviews.
Plymouth is one of the largest urban centres in the South West and is expected to benefit from significant investment in defence and infrastructure, supporting long-term economic activity and consumer spending in the city. The store serves the largest exclusive supermarket catchment in Plymouth and ranks among Morrisons’ strongest performing stores nationally. LaSalle’s Strategy & Research analysis also indicates that this supermarket ranks in the top quartile nationally for location quality across all grocery operators.
The acquisition reflects LaSalle’s continued focus on high-quality assets that combine secure, inflation-linked income with strong underlying real estate fundamentals. Opportunities to acquire long-let supermarkets with dominant local market positions remain relatively rare, particularly at a time when investor demand for defensive income-generating assets remains strong. LaSalle was advised on the purchase by JLL.
John Longworth, Portfolio Manager, UK Custom Accounts at LaSalle, said: “This acquisition adds long-term, inflation-linked income to our client’s portfolio at an attractive yield, whilst also being underpinned by a high-quality asset, dominant in its catchment and with strong underlying retailer trade. We continue to see compelling opportunities in the grocery sector, where established assets benefit from resilient consumer demand, limited new supply and strong trading fundamentals.”
Chris House, Senior Transactions Manager at LaSalle, added: “In a highly competitive market, sourcing high-quality grocery assets that combine secure income with attractive entry pricing is increasingly challenging. Plymouth’s resilient economic outlook, combined with the store’s extensive catchment, makes this supermarket a particularly compelling addition to our client’s portfolio.”
