DTZ Investors Acquires Prime London Supermarket
DTZ Investors has acquired a prime London supermarket, let to Sainsbury’s, for £56,250,000. Knight Frank acted for DTZ Investors whilst Savills acted for the vendor, Lothbury.
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. 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.
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”.
Freddie MacColl, Partner at Knight Frank ““We are delighted to have advised DTZ Investors on this core supermarket with rare and exceptional characteristics. We have now acted for DTZ Investors on two deals this year where they’ve performed on a 10-working day timeframe and at the agreed price on both occasions.”