Lunson Mitchenall advised Cheltenham Borough Council on its off market acquisition of the Sainsbury’s supermarket on Priors Road, Cheltenham from Hermes for £20.72m, reflecting a net initial yield of 5.0%.
The modern 44,762 sq ft supermarket is located in the affluent suburb of Oakley and is the dominant food store on the eastern side of Cheltenham. The freehold investment is let to Sainsbury’s for a term of 30 years from June 2008 at a rent of £1.105m per annum.
James Cogavin, Director at Lunson Mitchenall, says: “Lunson Mitchenall act for a number of Local Authorities and this is the latest example of a Council focusing on opportunities, that offer a long secure income stream.”
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