Savills Investment Management have bought the freehold interest in the Tesco, Metro Park West, Gateshead for £33.667 million reflecting an initial yield of 5.56%.
The property is a prime retail warehouse investment located in close proximity to the Intu Metrocentre, which is the largest covered shopping centre in Europe and which attracts over 21 million visitors a year.
It is a modern purpose built retail warehouse of 150,000 sq ft. It is let to Tesco Stores Limited until 2048 off a current passing rent of £1,998,500 per annum, which is reviewed 5 yearly to RPI, capped at 4% and collared at 1% per annum.
Tesco have sublet the property to The Range and Sports Direct.