Standard Life Investments acquires Cheshire based Tesco
Standard Life Investments, one of the largest property investors in Europe, announces its £21m acquisition of a Tesco's superstore in Congleton, Cheshire on behalf of the £300m Standard Life Investments UK Property Fund.
The Tesco Superstore is located on a main arterial route though Cheshire, 24 miles south of Manchester and 10 miles north of Stoke on Trent. The property itself comprises a supermarket of 47,188 sq ft with ancillary areas of 1,854 sq ft in addition to 300 car parking spaces - an area of approximately 4.5 acres in total. The site is leased to Tesco PLC for an initial 20 year term.
Nigel Chapman, manager of the Standard Life Investments UK Property Fund, said; "We are delighted to have completed the purchase of this well located asset secured to Tesco for 20 years. The purchase reaffirms our commitment to increase the distributable yield of the Fund and to protect its income from the effects of inflation - achievable as the lease has an annual rent indexation in line with RPI."
Standard Life Investments UK Property Fund is structured as an authorised property unit trust and invests directly in UK Commercial Property. It was originally launched in October 2005 for internal asset allocation purposes, otherwise being available to investors via Standard Life's off-shore bond and Irish unit-linked pension products. In August 2009, the Fund was opened to retail investors who are able to access the Fund directly from Standard Life Investments or via Standard Life's and other major UK platforms.
Standard Life Investments were advised by Strutt and Parker LLP. Tesco were advised by Morgan Williams.