Legal & General sells Sainsbury’s in Cheltenham for £60.4 million

Published by

Nicky Godding

The specialist retail investment team at Colliers International has completed the sale of the Sainsbury’s, Tewkesbury Road, Cheltenham store, on behalf of Legal & General to Supermarket Income REIT.

The sale sees the 97,434 sq ft Sainsbury’s store and petrol filling station sold for £60.4 million, reflecting a net initial yield (NIY) of 5.25 per cent. The asset is let to Sainsbury’s Supermarkets Limited, expiring in June 2032, and generates a current passing rent of £3,338,216 per annum.

Tom Edson, head of out of town investment at Colliers International added: “We are pleased to have been able to see this sale through to fruition on behalf of our client Legal & General.

“Although this asset is a good example of a regionally important superstore, a combination of the over rent, short remaining lease term and an attractive offer from the purchaser made the opportunity too good for our client to pass up.”

Nicky Godding

Nicky Godding is editor of The Business Magazine. Before her journalism career, she worked mainly in public relations moving into writing when she was invited to launch Retail Watch, a publication covering retail and real estate across Europe. After some years of constant travelling, she tucked away her passport and concentrated on business writing, co-founding a successful regional business magazine. She has interviewed some of the UK’s most successful entrepreneurs who have built multi-million-pound businesses and reported on many science and technology firsts. She reports on the region’s thriving business economy from start-ups, family businesses and multi-million-pound corporations, to the professionals that support their growth and the institutions that educate the next generation of business leaders.