Supermarket giant Sainsbury’s has bought two retail schemes from Leeds-based property company Town Centre Securities for £29.9m.
The retailer bought The Malthouse and Fisherton Street in Salisbury at a yield of 5.2% as part of a drive to focus on property.
The Maltings retail scheme comprises a 45,000 sq ft Sainsbury’s supermarket with a fully-let shopping precinct consisting of 26 retail units, a public house, residential apartments and a car park.
30-34 Fisherton Street consists of two retail units of 21,000 sq ft, and in total both properties provide total annual rental income in excess of £1.5m.
Commitment to property
In its latest results, Sainsbury’s committed to more active management of its property portfolio, saying: ‘The company believes that ownership of its property assets enables it to retain operational flexibility while exploiting potential development opportunities and maximising value for shareholders.’
Earlier this month, Sainsbury’s agreed to a property joint venture with Land Securities worth an initial £113m.
Edward Ziff, chairman and chief executive of Town Centre Securities, said: 'At a time of major uncertainty with respect to property values, we are pleased to have realised excellent value for this sale.
'The proceeds add to our firepower as and when we see good opportunities to add to our portfolio, particularly if, as we expect, the issues in property and financial markets result in distressed vendors having to sell property at lower prices.'
No comments yet