Orchard Street Investment Management LLP, the specialist commercial property investment manager, announces that it has acquired the Tesco Extra in Wembley, NW10, from a joint venture between British Land and Tesco.
The site is let to Tesco Stores Ltd for a further 23 years.
The property was bought on behalf of a client of Orchard Street for £61.86 million (approx. 78 million), reflecting a net initial yield of 5.5%.
Comprising a 122,145 ft² (approx. 11,347 m²) purpose-built Tesco Extra, 781 space car park and stand alone petrol station, the property is located immediately adjacent to the A406 North Circular and Ikea, and close to Wembley Stadium. The site is let to Tesco Stores Ltd for a further 23 years, subject to five yearly rent reviews, with a current rental income of £3.6 million (approx. 4.5 million) per annum. In 2011 substantial refurbishments and extensions were made to the store by the tenant.
Commenting on the acquisition, Gary Felce, Partner at Orchard Street, said: "We are delighted to have completed the acquisition of the Tesco Extra site in Wembley. The combination of a long secure income from a first class covenant, excellent location and the strength of the food sector make this a high quality asset with strong growth potential."