Hermes Real Estate has sold the Sainsbury’s superstore in East Dulwich to M&G Real Estate for GBP68 million, reflecting a net initial yield of 3.95 per cent.
The 89,011 sq ft store, on Dog Kennel Hill in East Dulwich, is let to Sainsbury’s Supermarket Limited on a 30 year lease with just under 25 years remaining.
The store was refurbished in 2009 and serves an affluent London suburb.
Chris Taylor, CEO of Hermes Real Estate, says: “The sale of the East Dulwich store fits within our long-term investment strategy of portfolio diversification, both regionally across the UK and increasingly overseas. As part of this we are actively marketing strong assets to ensure we can recycle capital into higher yielding property where we are able to add value by deploying our asset management skills.”
JLL acted for Hermes Real Estate, while M&G Real Estate was represented by Lewis Ellis.