By Helen Crane
April 11, 2016Private equity investor Investra Capital has acquired a Tesco Superstore in Farnworth, Greater Manchester, for £26.6m on behalf of private Middle Eastern buyers.
The 75,646 sq ft property was purchased from LaSalle Investment Management, acting on behalf of PACE Trustees Ltd.
The lease has an unexpired term of 20 years, with 5 yearly rent reviews linked to RPI with a cap of 5% annually compounded. At the April 2016 rent review, the yield will reflect 5.9%.
Martin Waller, managing director of Investra Capital, said: “Our investors continue to see UK property as a safe haven. This asset worked for a number of reasons particularly with regards to the fact there is guaranteed rental performance and the unexpired term is 20 years to an institutionally acceptable covenant who are committed to the store. We have also secured favourable debt terms on the asset which enhances returns further.”
This deal takes Investra’s acquisition total for the past year to more than £100m. The company currently has £200m worth of property under management.
GL Hearn acted for Investra.