British Land has disposed of a Sainsbury's superstore in Macclesfield to Aviva Investors' Lime Property Fund for £36m, the net initial yield of 4.4% reflecting the continued strength of the leading foodstore sector.
The 73,500 sq ft superstore is leased to Sainsbury's for 28.5 years at a passing rent of £22.90 a sq ft. The lease benefits from an RPI linked increase, capped at 4% pa with a minimum increase of 2% pa.
Charles Maudsley, head of retail at British Land, said: "We are delighted to have agreed the sale of Sainsbury's Macclesfield superstore at a value which reflects the significant yield compression in this sector over the last year. The store is the dominant food store in the town, has an affluent catchment area, and will provide Aviva Investors with a long-term, high quality secure and growing income stream."
GL Hearn represented British Land; Lewis & Partners advised Aviva Investors.