The sale of a Co. Down Tesco Extra store is one of the largest commercial property deals in Northern Ireland this year. This foodstore sold for £27m and is located at Downshire Road in Newry.
The annual rent for this building is over £1.5m and Tesco, the current tenant, is on a 25-year lease for this property, which began in May 2013.
Ben Turtle, investments director of selling agents Savills Northern Ireland, stated: “Savills is delighted to have assisted Aberdeen Standard Investments on the sale of this dominant foodstore in Newry.
“The high-quality tenant 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.
Tesco continues to be Northern Ireland’s biggest supermarket with approximately 35% of grocery sale share across approximately 50 stores.
In 2015 it reversed nearly two decades of continuous expansion in Northern Ireland as it dropped plans for two stores in Carryduff and Armagh.
This sale follows the Co. Down investment and development firm Wirefox announce the £43.5m purchase of a landmark office development in Glasgow. This firm also recently purchased the CastleCourt Shopping Centre in Belfast.
Wirefox has acquired the 11-storey Capella building, which encompasses more than 100,000 sq ft of office space.
In July 2017, Wirefox finalised the sale of the CastleCourt shopping centre for £125m.