News

DTZ Investors continues to expand its UK Essential Retail strategy, having completed a £101.4 million off-market grocery portfolio from Asda.  The transaction covers 4 superstores over 33 acres in core, urban locations in London, Birmingham, Coventry and Leeds.  BNP Paribas Real Estate acted for DTZ Investors with HampsonWall supporting the occupational underwrite. Eastdil represented Asda.

The stores are let to Asda on FR&I terms with a minimum 25-year term and annually indexed reviews. They operate an omni-channel model from each site including full-format supermarket, ancillary uses, petrol filling station, large surface car park and wider click and collect and home delivery fulfilment.

Ben Haller, Director at DTZ Investors: “We continue to see value in the Essential Retail sector. This deal is a great example of our commitment to the strategy, which now exceeds £1.5 billion in the UK.  We have worked closely with Asda to assemble a portfolio that aligns to our investment objectives of allocating capital to the strongest markets.  All stores are embedded within large dynamic economies, fronting busy arterial routes and surrounded by dense shopper catchments. They are individually underwritten on dominant trade metrics and are well underpinned by alternative uses, so we expect the portfolio to deliver strong inflation-hedged income alongside long term capital growth.”

Will Robertson, Head of National Investment at BNP Paribas Real Estate: “We are delighted to have advised DTZ Investors on this landmark transaction in the grocery sector. Supermarkets are a resilient asset class which can offer outstanding risk adjusted returns when underwritten by strong store performance in supply constrained markets.  The omni-channel stores sourced in this off-market portfolio tick all the boxes in terms of performance and real estate fundamentals, and we congratulate DTZ Investors on the successful conclusion of a complex deal.”