Oldham Tesco Extra supermarket sold for £50m-plus

Date published: 23 February 2018

Rosette Merchant Bank has marked its first deal of 2018 with the acquisition of the 149,000 sq ft Tesco Extra supermarket and an accompanying retail parade in Oldham, from Bowmer & Kirkland.   

The purchase price was in excess of £50 million with over 90% of the income secured against Tesco Stores Limited with in excess of 16 years unexpired.

The property comprises a modern two storey supermarket and convenience District Centre constructed in 2008 for Tesco together with 900 car parking spaces.

The lease to Tesco runs until February 2034 with no breaks and benefits from five-yearly rent reviews to the higher of 2.5% per annum compounded or uncapped RPI. 

The property is the dominant town centre foodstore and the investment also includes a mix of national and local retailers and multiple opportunities for asset management to further enhance the properties.   

Rosette’s latest transaction follows on from 2016’s £37 million House of Fraser deal and 2017’s Marks Spencer portfolio and Debenhams store purchases at £50 million and £15 million respectively.

To date, the Real Estate division, which was established in March 2016, has completed c. £150 million of acquisitions and transacted a further £100 million through its specialist real estate advisory arm.   

Sam Broadhead, Chief Executive Officer, said: “The Tesco deal marks a great start to 2018 and continues our strong momentum in the Commercial Real Estate sector.

"While we remain a relatively new entrant to the market having established the Real Estate division only two years ago, we are pleased with our achievements to date. 

"We intend to build on this and, with a strong pipe line of deals across the market, we are confident in doing so."