Ryden has announced that it has purchased the newly developed Sainsbury’s Local store in Menston, Leeds on behalf of Kingston Unity Friendly Society. The retail unit was sold on a forward commitment basis for £1.44 million, reflecting a net initial yield of 5.2%. AWS advised the seller, Leeds based developer Gregory Property Group.
The investment comprises a 4,000 sq ft purpose built retail store in a very prominent location fronting the A65 arterial route from Leeds to Menston. The building was pre-let to Sainsbury’s Supermarkets Ltd on a 15 year lease, without break with fixed uplifts, and a commencing rent reflecting £19.05 per sq ft.
Kevin Surplice of AWS commented that: “the scheme provides high quality convenience store facilities in a very popular residential location let to a first class covenant. The investment was sold on a forward commitment basis off an aggressive net initial yield, reflecting the highly competitive investment market for high quality properties.”
Matthew Edwards of Ryden added: “We are pleased to secure this new build investment which has good security of income and an attractive yield on behalf of our client.”