Palmer Capital Income Fund has led a deal to acquire the 45,000 sq ft site on Manchester Road, Stockport, at a price reflecting a net initial yield of 4.9%.
The PCIF is a joint venture with CBRE’s Global Investment Partners, along with other investors.
The Reddish store, which was redeveloped by Brookhouse and let to Asda in 2015, has a further 20 years unexpired full lease and benefits from five yearly reviews with a 2% rent increase each year.
Asda recently completed a petrol filling station on the 3.4-acre site, and currently pays a rent of £733,000 each year. This makes the site worth approximately £16.52/sq ft.
The retailer had a UK market share of 15.2% by December last year and reported a pre-tax profit of £485m on a turnover of £22.5bn for the same period.
Rupert Sheldon, fund manager and head of core real estate investment management at Palmer Capital, said: “This acquisition is a perfect fit for our strategy of further enhancing the fund’s exposure to long, strong and progressive income streams which provide our principally pension fund investors with a good match for their future liabilities.”
Stockford Anderson acted on behalf of Brookhouse Group and CWM Out of Town acted for Palmer Capital.