One of the Largest Tesco’s in Northern Ireland Sells for Over £27m

12 September 2017

Savills Northern Ireland has today, Tuesday 12 September 2017, announced the sale of the 93,788 sq. ft. Tesco Extra foodstore in Newry, Co. Down for more than £27m. The property, which is situated on Downshire Road, was sold by Aberdeen Standard Investments to a private investor.

Constructed in 2013, the entire building is let to Tesco Stores Limited on a 25 year lease from 1 May 2013 at an initial rent of £1,588,167 per annum – representing a net initial yield of 6%.

The property is well-located at the northern periphery of Newry city centre on Downshire Road, the main route between the city centre and Newry’s northern suburbs. Newry’s railway station is situated 2 miles (3.2 km) North West of the store and a bus stop is situated at the store entrance, providing regular bus services to locations across the city. The surrounding area comprises both residential and commercial uses; with Win Business Park, and various government buildings, primary schools and medical facilities nearby.

Ben Turtle of selling agents, Savills Northern Ireland commented:

“Savills is delighted to have assisted Aberdeen Standard Investments on the sale of this dominant foodstore in Newry. The high-quality tenant in situ 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 is the largest retailer in the UK and one of the largest retailers in the world, with stores in 11 different markets. Tesco has a circa 30% market share of the UK grocery market with over 3,500 stores and 310,000 employees. They are the largest supermarket chain in Northern Ireland, with over 50 stores and 34.7% market share.

Aberdeen Standard Investments were also represented by Belfast solicitors, Cleaver Fulton Rankin.

 
 

General Enquiries

Savills Belfast

 

Key Contacts

Ben Turtle

Ben Turtle

Director
Investments

Savills Belfast

+44 (0) 28 9026 8006

 

Andrew Smyth

Andrew Smyth

Head of Marketing & Communications
Marketing & Communications

Savills Dublin Commercial

+353 (0) 1 618 1479