Singaporeans buy Beckenham Sainsbury's at 5.6%

By Paul Norman - Tuesday, January 23, 2018 10:45

CBRE Global Investors has sold the Sainsbury’s supermarket in Beckenham, South London for £15.5m, reflecting a net initial yield of 5.6%, to Singapore's Odyssey Partners acting on behalf of a private client.

The part freehold/part long leasehold investment comprises a supermarket totalling 45,000 sq ft (4,180 sq m) with 277 decked car parking spaces on a 2-acre (0.8 ha) site in Beckenham town centre.

The investment providesincome with approximately 6.5 years unexpired to Sainsbury’s off a passing rent of £928,000 pa, reflecting £18.75 per sq ft (£201.83 sq m).

“We are pleased to acquire the property, which is well located in a strong residential area and underpinned by an excellent tenant covenant,” said Andrew Bygrave, Managing Director for Odyssey Partners. “We are confident that the supermarket retail sector will remain robust in the year ahead as we look to continue to invest in this sector, whilst continuing our strategic investment programme in the UK.”

Nick Richardson, partner at Montagu Evans, said: “The site’s secure income and redevelopment potential in an affluent Greater London location attracted a huge depth and variety of interest, which was amplified further by its residential potential longer term.”

Montagu Evans advised CBRE GI; Hartnell Taylor Cook advised Odyssey Partners.

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