Porterfield Public Relations - November 24, 2006
Sainsbury’s, advised by Capital Retail, has forward sold the freehold of its retail warehouse development at Osmaston Park Road, Derby to a private syndicate for £29,805,000, reflecting a net initial yield of 4.6%.
The property will comprise a 103,500 sq ft (9,615 sq m) DIY store, which has been pre-let to B&Q plc on a 20-year lease, from practical completion, at an initial rent of £1,450,000 pa. Practical completion of the scheme is scheduled for autumn 2007.
Michael Comley, partner of Capital Retail’s London office which sourced the development site and the tenant (B&Q), comments: “This deal reflects debt driven private syndicate investors’ continued appetite for low risk investments with long lease terms and strong covenants.”
Sainsbury’s purchased the site, which originally housed a Midlands Co-operative Society supermarket and dairy, in 2003. The supermarket was rebranded to a J Sainsbury’s and the balance of the land was held with an option subject to planning. Cushman & Wakefield advised the purchaser.
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