Sainsbury's seals £191m distribution deal

Sainsbury’s has completed a £191m sale and leaseback deal on four of its distribution depots.

The four sites are:
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• Tamworth, 423,494 sq ft, sold to BAE Capital Pension Fund Trustees for £38.5m
• Stoke, 561,203 sq ft sold to Canada Life for £40m
• Haydock, 626,624 sq ft sold to clients of Mutual Finance for £42.7m
• Hams Hall, 783,344 sq ft sold to Christian Vision for £70.1m.

All four deals have been secured on 25 year leases to Sainsbury’s with an average yield of 5.74%. The move forms part of Sainsbury’s plans to actively manage its estate to ensure it maximises the value of each property.

Sainsbury’s were advised on the deal by Cushman & wakefield. Kitchen LaFrenais Morgan advised BAE; Atisreal advised Canada Life; Morgan Williams advised Mutual Finance and CBGA advised Christian Vision.

Source: Property Week