Pension fund invests £6m to buy supermarket site
A UK pension fund has snapped up the site of a supermarket in County Londonderry for a cool £6m.
CBRE Global Investors has completed the £6.26m acquisition of the Tesco foodstore on Main Street in Limavady.
The 36,313 sq ft store is set on a 3.22 acre site, providing for 234 car parking spaces and is fully let to Tesco.
The sale reflects an net initial yield of 5.83%
Acting on behalf of Hampshire County Council Pension Fund, Ric Crane, director of separate accounts, said that the purchase offered a secure, 10 year plus income stream at an above average yield, off a low rental level.
Donall McCann, Investment Director BTWShiells, who advised CBRE Global Investors added: "CBRE Global Investors continue to seek out good value opportunities in Northern Ireland which is encouraging for the local commercial property market.
"We are finding where commercial investment property is correctly priced demand does currently exist from both local and GB based investors to transact".
BTWShiells has also recently completed the disposals of a Waitrose foodstore in Oxfordshire for £9.35m and Centre Heights, a mixed use investment in Finchley Road London for £8.45m.
The disposal of the Waitrose foodstore followed BTWShiells re-gearing the lease and project managing an extension to double the floor area.
The property was sold to a United Kingdom fund and the price achieved reflected a net initial yield of 4.5%.
Centre Heights is a fully let retail and office development with tenants including M&S Simply Food, Lloyds TSB, Subway, PPI Claimline and Oceanmap Ltd. The property was acquired by an overseas investor.