GVA has completed the sale of a brand new, 105,977 sq ft Morrisons supermarket in Birmingham to global fund manager PRUPIM for £54 million, reflecting a net yield of 4.5 per cent.
The sale – which was agreed through full forward funding – is based on practical completion of the store, which is scheduled to take place in October 2012, with the supermarket expected to be open for trading early in 2013.
The 5.75 acre (2.33 hectare) site is located in the Birmingham suburb of Sheldon, six miles from the city centre. The site is supported though excellent road connections, via the A45 Coventry Road, which connects to both the Birmingham Ring Road and Junction 6 of the M42 Motorway.
Damian Lloyd, Director, National Markets – Investment, GVA, said: “In the current market, a deal of this size is extremely significant. Located within a high density mixed commercial and residential area, the local demographics – combined with convenient access – provides a substantial customer catchment of over 190,000 people within a ten minute drive time.
“As well as forming a key part of the continued development of Sheldon, this is a high income asset that will provide a high income yield. By taking this building now, PRUPIM has maximised its revenue generating capacity.”
Developed by Chase Midland Estates Ltd, the building comprises a purpose-built foodstore for WM Morrison Supermarkets PLC together with some ancillary retail units and 473 surface car parking spaces.
Tim Haslam, Chase Midland Estates, said: “We are extremely pleased to announce this sale to PRUPIM. The development of this site has required a substantial level of investment in terms of undertaking a painstaking site assembly of obsolete commercial buildings.
“Morrisons is a widely recognised and well-known brand throughout the UK and its reputation as a retailer, combined with the prominent location of this development provides an outstanding investment opportunity. I believe that PRUPIM will be extremely pleased with the purchase.”
GVA’s investment team advised Chase Midland Estates during the sale, with Savills acting for PRUPIM.