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Fiera Real Estate Goes Shopping with £14m Asda Acquisition

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Fiera Real Estate Long Income Fund, a programmatic venture with CBRE Global Investment Partners Limited (“CBRE GIP”) and other investors has acquired a modern Asda store comprising 44,368 sq. ft in Stockport, Greater Manchester for £13.9m, reflecting a net initial yield of 4.9%. The store, redeveloped by Brookhouse and let to Asda in 2015, has a further 20 years unexpired on an FRI lease and benefits from five yearly rent reviews at 2% per annum compounded.

Asda have recently completed a new petrol filling station at the 3.4-acre site where they currently pay a rent of £732,883 per annum reflecting a modest £16.52 per sq. ft. The recent investment in the site by Asda reinforces the commitment of the ‘big four’ supermarket operator who had a UK market share at 15.2% as at December 2018 and reported a pre-tax profit of £485m on a turnover of £22.5bn for the same period.

Commenting on the transaction, Rupert Sheldon, Fund Manager and Head of Core REIM at Fiera Real Estate said: “This acquisition is a perfect fit for our strategy of further enhancing the Fund’s exposure to long, strong and progressive income streams which provide our principally pension fund investors with a good match for their future liabilities”.

Stockford Anderson acted for Brookhouse Group and CWM Out of Town LLP acted for Fiera Real Estate.