Sainsbury deal gives 5% yield

A Macclesfield supermarket store has been bought by British Land for £30.5million, reflecting a net initial yield of 5 per cent.

British Land regards the 73,500 square foot store as a "secure income stream" for its existing supermarket portfolio.

It is leased to supermarket chain Sainsbury's for 29.5 years at an initial rent of £22/sq ft. The lease benefits from Retail Price Index linked increases, capped at 4 per cent a year, with a minimum increase of 2 per cent a year.

Private clients of Blandford Goldsmith sold the property. NB Real Estate and GL Hearn acted for British Land.