Seven Tesco Express assets with residential long leasehold elements.
The portfolio comprises seven Tesco Express assets all of which have residential long lease elements spread across central and southern England. Tesco will be leasing back the store elements for a 15-year term with a 10th year tenant break option. The leases will be inside the Landlord & Tenant Act 1954 (Part II) and will contain two 10-year extension options. Examples of the leases as well as lease plans for the proposed Tesco demise can be found in the data room. All of the sites include residential long leasehold parts which will be included in the sale. These long leases for the most part provide a 'peppercorn' income, however some sites do provide a nominal ground rent income. Additionally, certain sites have third party leased income from independent tenants. These assets will be included as part of the sale, and further information on these leases can be found in the data room.
The portfolio is spread across central and southern England. Locations include London, Bath, Portsmouth, Milton Keynes, Margate and Hitchin. Greater detail on the specific locations of the stores can be found in the brochure.
Tesco Stores Limited will be taking a 15-year leaseback on the convenience store elements at all seven sites. The leases shall be inside the Landlord & Tenant Act 1954 (Part II) and will include a tenant break option on the 10th anniversary of the term. There will also be two 10-year extension options available to Tesco, the first of which will become active in 2039. The leases shall contain upward only rent reviews every fifth anniversary of the term.
£7.50 Rent /sq ft
Retail
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