Co-op expands pubs to shops deal
THE Co-operative Group’s food division has expanded its property deal to lease pub sites which will be converted into convenience stores.
It first unveiled the venture in April with NewRiver Retail, a Real Estate Investment Trust (REIT), which recently acquired 202 Marston’s pubs for £90m.
The Co-op originally planned to take on 54 sites, which range in size from 3,000 sq ft to 4,200 sq ft, but this has been bumped up to 63.
It will pay £3.8m and also a rent of between £15-£17.50/sq ft on a 15-year lease.
NewRiver said the majority of the developments will be built on surplus land and car park areas to create a “synergy between the new retail and existing pub use”.
The remainder will involve conversions and new builds on the site of the existing pubs. In a few instances residential units will also be built.
Steve Murrells, chief executive of the Co-operative Retail Division, said: “The Co-operative Group has a clear vision to establish itself as the best local food retailer in the UK and over the coming years our focus will be to develop and grow our existing convenience estate of over 2,000 shops.
“The key to our focus is our new store opening programme where we intend to open 150 new stores each year. We are delighted to be working with NewRiver Retail and this significant portfolio is a great example of the innovative and industry leading transactions we are undertaking as a part of our ambitious convenience expansion plans.”
