Altrincham Asda sold for £22.5m
Aberdeen Standard Investments has sold a 71,000 sq ft Asda foodstore in Altrincham for £22.5m to the Greater Manchester Pension Fund.
The sale price of the 5.83-acre site reflects a net initial yeild of 4.75%, based on an expected ‘topped up’ rental income following a 2020 review.
Aberdeen funded the development of the store five years ago. The scheme includes 385 surface car parking spaces and an on-site petrol station.
The lease to Asda Store is a 25-year deal with 21 years unexpired, and generates a current passing rent of £1m a year, estimated to increase to £1.14m following next year’s rent review.
Aberdeen was advised by Colliers International. GMPF was advised by Avison Young.
Tom Edson, a director in Colliers’ retail capital markets team, said: “As the second largest grocery retailer in the UK with a 15.4% market share, Asda investments are one of the rarest supermarket commodities. This, combined with the attractive inflation-linked long lease on a store located in an affluent Manchester commuter town were compelling reasons for the purchaser to acquire the property.”
David Winterbottom at Avison Young said: “Our client is delighted with the acquisition of the investment which offers long term income from the Asda benefiting from fixed inflationary rental uplifts throughout the lease. We have been keen to invest in some ‘defence stock’ during these uncertain times and this offers the criteria we have been looking for.”