Leading UK commercial property company, British Land, have announced it has exchanged on the sale of 12 Sainsbury’s superstores for £429m.
Representing a net initial yield of 5.0%, the sale to Realty Income Corporation will generate £193.5m for the retail and London office firm.
Commenting on the disposal British land stated: “This is the latest example of how we are delivering against our clear long-term strategy to build an increasingly mixed-use business focused on three core elements: campus focused London offices; a smaller, refocused Retail business and Residential, principally build to rent. As part of this, we expect Retail to comprise c.30-35% of the assets of our business, down from around half today.”
British Land currently manage a £16.8bn portfolio and are one of Europe’s largest listed real estate investment companies.
The transaction is expected to complete at the end of May.