CBRE Global Investors, advised by Montagu Evans has sold the Sainsbury's supermarket in Beckenham, South London for £15.5 million, reflecting a net initial yield of 5.6%. The purchaser was Odyssey Partners, a Singapore-based real estate advisory firm, acting on behalf of a private client.
The part freehold/ part long leasehold investment comprises a supermarket totalling 45,000 sq ft (4,180 sq m) with 277 decked car parking spaces on a 2-acre (0.8 ha) site in Beckenham town centre.
The investment provides secure income with approximatley 6.5 years unexpired to Sainsbury's off passing rent of £928,000 pa, reflecting £18.75 per sq ft (£201.83 sq m)
"We are pleased to acquire the property, which is well located in a strong residential area and underpinned by an excellent tenant covenant"
said Andrew Bygrave, Managing Director for Odyssey Partners.
"We are confident that the supermarket retail sector will remain robust in the year ahead as we look to continue to invest in this sector, whilst contining our strategic investment progamme in the UK"
Nick Richardson, partner at Montagu Evans, said:
"The site's secure income and redevelopment potential in an affluent Greater London location attracted a huge depth and variety of interest, which was amplified further by its residential potential longer term"
Hartnell Taylor Cook advised Odyssey Partners.