Gentian acquires Newbury supermarket
RK Real Estate has sold a Tesco supermarket in Newbury, Berkshire to real estate development company Gentian on behalf of a private client.
The property was marketed with an asking price of £2.5m, reflecting a net initial yield of 7.93%.
The asset is located at 17-19 Northbrook Street with the tenant, Tesco Express, recently signing a 10-year lease at a rent of £211,000 per annum.
The property extends to a total of 19,264 sq ft across two floors and has a variety of potential asset management opportunities. These include the splitting of the property either horizontally, to allow for other uses at the upper parts, or vertically, to present two units.
A 1,350 sq ft self-contained element of the first floor is sublet to a recruitment company.
Anchor retailers in Newbury include Marks & Spencer and Camp Hopson department store. Primark are also set to open a 35,000 sq ft shop in the nearby Parkway shopping centre next month. Other nearby retailers include H&M, Next, Boots, New Look, and Waterstones. There are also various nearby food and beverage operators such as Bill’s, Loungers, Costa Coffee, and Caffe Nero.
Tesco Express is the only major supermarket retailer in the town centre. Out-of-town supermarkets in Newbury include Tesco, Waitrose, Lidl, Aldi, and Sainsbury’s.