Tesco Extra in Bradley Stoke has been sold off to a London property investment trust as part of a major deal worth £84m. The agreement, announced on Monday (September 26), will see Supermarket Income REIT plc acquiring the 19.8-acre site, which includes a 74,717 sq ft net sales area main store; a 16-pump petrol station; a 925-space car park; an Iceland food warehouse; and other retail units nearby.
The Bradley Stoke store is an online hub for Tesco, operating 20 home delivery vans and a dedicated click and collect facility. Tesco has operated at the site since the 1980s and through an extensive refurbishment expanded the branch in 2007. The other shop units acquired as part of the deal are currently home to tenants including Boots, Greggs, Costa Coffee and Pets at Home.
The site is being acquired from global real assets investment management firm CBRE Investment Management. The purchase price excludes acquisition costs and will reflect a net initial yield of 5.6 per cent, Supermarket Income REIT plc said. The Tesco store has an unexpired lease term of 14 years.
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Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: "We are very pleased to be adding this top trading omnichannel Tesco store to the portfolio together with the complementary essential retailers at this site.".
Earlier in September, Tesco confirmed that self-service checkouts would be put in place at its Bradley Stoke Extra store, but said the new automated system would not replace its staff. The supermarket said the change comes at a time when it rarely requires all of its attended checkouts (those manned by Tesco staff) to be open at any one time, due to lack of customer demand.
The news comes as supermarket rival Sainsbury's confirmed that talks with real estate firm LXi REIT to sell 18 of its branches in the South of England on a leaseback basis had collapsed.
The supermarket chain announced last week it was in talks to sell off a number of its stores in a deal estimated to be worth around £500m. But on Monday, the chain said it was no longer in discussions with LXi REIT.
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