Orchard Street acquires Sainsbury’s supermarket in Surrey
15 April 2014
Orchard Street Investment Management, the specialist commercial property investment manager, has completed the acquisition of a Sainsbury’s supermarket on Stafford Road, Wallington, Surrey, on behalf of St. James’s Place UK PLC, from Legal & General Property for £35.03 million. The sale price represents a net initial yield of 4.25%.
The 60,400 sq ft supermarket is let to J Sainsbury’s PLC on a 20 year lease. The lease has recently been regeared from open market review to RPI reviews at a new rent of £1,575,000 per annum (£26 psf), which will be subject to five yearly rent review increases in line with the retail price index with an uplift of between 1.0% and 4.0% compound per annum.
Barney Rowe, Partner at Orchard Street, commented:
“The acquisition of this prime supermarket provides us with good exposure to inflation linked rental growth from a top quality covenant. This, combined with the asset’s excellent location in an affluent suburb of south London, underpins our confidence in the asset’s long term reversionary potential.”
Knight Frankacted for Orchard Street andCBREacted on behalf of Legal & General Property.
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For more information:
Dido Laurimore/ Talia Shirion
FTI Consulting
+44 (0)20 3727 1000
osim [at] fticonsulting.com
Notes to Editors:
Orchard Street Investment Management
Established in 2004, Orchard Street Investment Management LLP is a leading specialist commercial property investment manager, focused on the UK market with £4.2 billion of AUM (as at 30 June 2022). It acts on behalf of institutional clients world-wide to advise on investing in and the active management of property assets, including industrial warehouses, retail warehouses, and offices.