MDSR picks up Leigh Morrisons

Aviva Investors sold the supermarket as part of a £100m deal that also included a Sainsbury’s in Sutton and another Morrisons in Milton Keynes.

The Morrisons sold in Leigh sits off Sale Way and includes a butcher, salad bar, and a bakery.

MDSR Investments’ acquisition of the three supermarkets reflects a blended effective net initial yield of around 6.25%. The stores have a combined WAULT of 19 years.

Montagu Evans acted for Aviva on the deal, while Cushman & Wakefield represented MDSR.

Montagu Evans partner Mark Girling shared a few more details about the sale.

“Blending a range of geographies, lease lengths, rental levels and credit strengths, this c. £100m transaction was structured to include a 5-month delayed completion, which occurred just before Christmas, allowing our client to take advantage of additional rental income,” Girling said.

“The blended effective net initial yield of c.6.25% represents an attractive result for Aviva Investors in the prevailing market, whilst providing the purchaser with a long, attractive, indexed income profile.”

Marcus Woods, head of retail and leisure investment at Cushman & Wakefield, described the appeal of investing in supermarkets.

“Despite the headwinds in the wider UK investment market, the grocery sector offers liquidity to vendors and attractive income profiles to investors,” he said.

While Aviva has sold off one of its North West assets, it has picked up another – acquiring the Lantern in Liverpool earlier this year. The Lantern is a mixed-use development with a hotel, 412 student beds, and a Lidl.