Savills Northern Ireland this week announced the sale of the 93,788 sq. ft. Tesco Extra foodstore in Newry, Co. Down for more than £27m. The property, which is situated on Downshire Road, was sold by Aberdeen Standard Investments to a private investor.
Tesco is the largest retailer in the UK and one of the largest retailers in the world, with stores in 11 different markets. They are the largest supermarket chain in Northern Ireland, with over 50 stores and 34.7% market share.
Constructed in 2013, the entire Newry building is let to Tesco Stores Limited on a 25 year lease from 1 May 2013 at an initial rent of £1,588,167 per annum – representing a net initial yield of 6%.
Speaking yesterday, Ben Turtle of selling agents, Savills Northern Ireland commented, "Savills is delighted to have assisted Aberdeen Standard Investments on the sale of this dominant foodstore in Newry. 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."