Newry Tesco store sold for £27 million to private investor
ONE of the north's largest Tesco stores has sold for more than £27 million.
The the 93,788 sq ft Tesco Extra foodstore in Newry, Co Down has been sold by Aberdeen Standard Investments to a private investor.
Constructed in 2013, the entire building is let to Tesco Stores Limited on a 25 year lease from May 1 2013 at an initial rent of £1,588,167 per annum – representing a net initial yield of 6 per cent.
Savills assisted in the sale of the Downshire Road property.
Ben Turtle from Savills Northern Ireland said:
"The high-quality tenant in situ ensured demand for this asset was strong throughout the sales process. The incoming purchaser will benefit from an attractive net initial yield and a tenant with an unexpired lease term in excess of 21 years.”
Aberdeen Standard Investments were also represented by Belfast solicitors, Cleaver Fulton Rankin.
Tesco are the largest supermarket chain in Northern Ireland, with over 50 stores and 34.7% market share.