Liverpool Tesco Superstore for sale for £4.5m
The freehold for the nearly 22,500 sq ft grocery store off Overton Street is on the market, a deal that also includes a nearby plot with “development potential”, according to agent Montagu Evans.
On behalf of the site owner – a client of CBRE Investment Management – Montagu Evans is soliciting offers of more than £4.5m for the two-acre property in Liverpool’s Edge Hill district. This price tag reflects a net initial yield of 6.5%.
Future property owners will be able to claim rent from Tesco, which has a lease on the building until October 2031. The supermarket chain is currently paying £311,700 a year in rent for the space, which reflects a rate of £13.87/sq ft. The rent is reviewed every five years, with the next schedule review in 2026. At that time, the minimum rental uplift will be £352,600 a year.
In addition to the store itself, the site includes an 88-space car park and an adjacent .7-acre plot that is accessed by Shenstone Street. This plot is currently vacant but has a restrictive tenant on it that states it can only be used as a private car park until the expiry of Tesco’s lease.
Nick Richardson, partner at Montagu Evans, said: “This investment offers very secure, medium-term income secured to Tesco at an attractive yield whilst also representing a strategic land holding comprising a 2.09-acre freehold site on the eastern edge of Liverpool city centre and close to the Knowledge Quarter and Paddington Village development.”