ESH advises Mayfair Capital on London foodstore purchase. 

Mayfair Capital, represented by Edgerley Simpson Howe has acquired a North London foodstore for £12.7m, reflecting a net initial yield of 3.54%. The asset was sold by a fund managed by CBRE Global Investors.

The purpose-built foodstore is located within the affluent area of Southgate, Enfield and is positioned a short distance from its centre. The property extends to approx. 19,000 sq ft and is let to M&S until 2045, with the benefit of fixed rental uplifts every five years.

Phil Sturdy, Investment Director, commented: “Modern supermarkets play a key role in the evolving pattern of consumption in urban areas. While shoppers have a preference to shop locally, especially for convenience food-based goods, the ability of supermarkets to cater for click-and-collect and home delivery also means they can benefit from the ongoing rise of e-commerce. In addition, competition for land in this growing area of North London supports future long-term capital growth opportunities.” 

Simon Martindale, Fund Manager of the Property Income Trust for Charities, added: “This acquisition provides attractive and secure long-term income to the Fund from a segment of the market which remains highly resilient to the current economic slowdown. This asset will complement the overall portfolio composition of the Fund following the recent warehouse purchases in Stoke-on-Trent and Stockport.”