A Booths food store in Lancashire has sold for over £9m.
The unit in Lytham St Annes, Lancashire, sold for £9.1m to Knight Frank Investment Management on behalf of Lancashire County Pension Fund, reflecting an initial net yield of 8%
Avison Young completed the sale after it was appointed as fixed charge receiver over the property in late 2019, and subsequently appointed to bring it to market in January 2020.
Avison Young described the property as an "attractive, modern purpose-built food store, which opened in 2015 with a long unbroken income from Booths".
John Styles of KFIM said: “We are delighted to have secured this resilient asset at an attractive price at what we see as an opportune time in the investment market.
"The 30-year lease with CPI linked reviews provides an attractive and stable income return, alongside the asset enhancement opportunities we have identified. We continue to seek investment opportunities within the county of Lancashire.”
Chris Walker, director, restructuring solutions at Avison Young, said: “Securing the sale of this property, despite the uncertain, challenging climate is testament to the calibre of the team involved, both at Avison Young and BCLP who provided legal support throughout.
"This appointment underlines our credentials as market leaders and emphasizes how we can add real value for our clients through collaboration with our in-house sector specialists.
“Avison Young’s restructuring solutions team is the largest and most experienced of its kind in the UK, representing all major banks, building societies and alternative lenders. The presence of our receivership teams across the UK allows for unparalleled local market knowledge, which is fundamental to assessing property security and securing maximum returns for our clients.”
Adam Wildig, director, investment at Avison Young, added: “There was strong interest in the property from both institutional and private investors.
"Despite the challenges that COVID-19 has presented, it was encouraging to see KFIM look at a long-let investment with good property fundamentals.
“This deal reflects a good return for KFIM as there are still 30 years remaining on the lease term with CPI linked rent reviews.”
The appointment to sell the supermarket followed the collapse of the borrower’s group of companies into administration in late 2019, including Marcus Worthington Properties.
KLM Retail acted for the purchaser.
