DTZ Investors has acquired a prime London supermarket, let to Sainsbury’s, from Lothbury for £56,250,000.
The site totals 2.5-acres and is entirely demised to Sainsbury’s who has been in continuous occupation since 1984. The building is EPC B-rated and comprises 67,426 sq ft, of which 35,000 sq ft is sales area along with a large 131-space surface car park.
Sainsbury’s has recently agreed a new 20-year reversionary lease taking expiry to 24th March 2044 with the fresh inclusion of annual indexed rent reviews, green lease clauses and a full parent company guarantee.
Islington is a densely populated and affluent Borough in North London with the food retail provision dominated by this supermarket, said DTZ Investors. ”The store boasts a prominent Liverpool Road frontage adjacent to the Angel Shopping Centre with its retail and leisure offer and Sainsbury’s is understood to be considering significant investment into the store to following agreement of the reversionary lease. Furthermore, the low site cover and low density today offers strong prospects for future intensification of this under-developed site in the heart of Islington,” added the company.
Ben Haller, Director at DTZ Investors: “This asset is the latest in our investment programme through 2023. There are opportunities amongst the wider market challenges with this core asset offering long and strong income with the potential for significant capital enhancement in the future”
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