British Land makes quick profit on supermarket sale

BRITISH Land has announced that it has sold a 73,500 sq ft Sainsbury’s superstore in Macclesfield to Aviva Investors for £36m, representing a net initial yield of 4.4%.

The store will sit in Aviva’s Lime Property Fund and is leased to Sainsbury’s for 28.5 years at a pasing rent of £22.90 per sq ft, with an agreement for annual inflation-linked increases of between 2-4%.

Charles Maudsley, British Land’s head of retail said, “We are delighted to have agreed the sale of Sainsbury’s Macclesfield superstore at a value which reflects the significant yield compression in this sector over the last year.

“The store is the dominant food store in the town, has an affluent catchment area, and will provide Aviva Investors with a long-term, high quality secure and growing income stream.”

British Land bought the site a year ago for £30.5m.