News - Midlands
Standard Life shops at Tesco
Standard Life Investments, one of the largest property fund managers in Europe, has purchased a Tesco Extra Supermarket in Shrewsbury for £46m on behalf of its Pooled Property Pension Fund. The supermarket was bought as a sale and leaseback from Tesco Stores, with a guarantee from Tesco, for £46.06m, at a net initial yield of 5 per cent. Mike Hannigan, fund manager for the Pooled Property Pension Fund, said: “The RPI-linked nature and the length of the income, twinned with the strength of the Tesco plc covenant, offers the pension fund an extremely attractive investment in these times where there are still inherent risks to funds from tenant weakness.”