Legal & General Investment Management’s (LGIM’s) Managed Fund has acquired Tesco Yarrow Road Poole from clients of abrdn for c. €53.9m. The transaction reflects an effective net initial yield of 7.75%.
The c. 8,826m2 store, together with a 16-pump petrol filling station and 599 car spaces, is accessibly located at the heart of the Poole Bournemouth conurbation, next to the destination Tower Leisure Park. 19 online fulfilment vans operate from the store, and there is also a substantial click-and-collect facility.
The entire property is let to Tesco Stores Ltd for a further seven years and the rent is subject to annual uplifts in line with RPI 0-4%.
Rob Codling, Senior Fund Manager, LGIM said: “This is a great acquisition for the fund, which we believe will provide a strong return for our investors. The store is well located and its prospects of continued high performance suit the long-term investment objectives of our clients.”
Montagu Evans’ Partner and supermarket investment specialist Mark Girling said: “The purchase is attractive to our client firstly due to the large, strategically located site at the centre of the Poole Bournemouth conurbation, secondly being a strong trading store for both physical and online sales and thirdly, having the benefit of a high yielding, annually inflation proofed income secured on the investment grade credit of Tesco Stores Limited.”
Abrdn was advised by Morgan Williams. Montagu Evans advised L&G.
Image provided by Holistic.
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