Private Equity Investor Investra Capital have acquired a Tesco Superstore in Farnworth, a commuter town between Manchester and Bolton, for £26.6 million on behalf of Private Middle Eastern Clients. The property was purchased from PACE Trustees Ltd c/o LaSalle Investment Management.
The 75,646 sq ft Tesco Superstore occupies a prominent position near the town centre at the junction between Long Causeway and Albert Road (A575) leading south to Walkden and the M60. It is also in proximity to the M61.
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 5.90%.
Martin Waller, MD of Investra Capital said that “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, transacted over the past year, to in excess of £100 million and they have over £200 million worth of property under management.
GL Hearn acted for Investra.
