Coffer Corporate Leisure has advised AEW UK on the disposal of two south-east Tesco Express convenience store investments.

The properties, let to Tesco plc, are both subject to long, index-linked leases. Tesco is the third largest retailer in the world (measured by gross revenues) and the leading food store operator in the UK with 4,600 sites.

The combined price of £2.62 million reflected a Net Initial Yield of 5.62% (topped up to review).

Jack Higgitt, Investment Surveyor at Coffer Corporate Leisure, said: “There remains healthy demand from private investors for defensive, long income-producing investments. High-quality assets with strong property fundamentals are still in short supply, which is driving pricing.

Both properties are great examples of this – let to an excellent covenant, benefit from attractive rental growth prospects, and are situated in strong towns with large, dedicated customer car parks.

Fundamentals will remain important, providing investors with confidence in an asset’s underlying value.”

Coffer Corporate Leisure represented the vendor, AEW UK. Doherty Baines represented the purchaser, a private client.

Tesco Express in Farnborough pictured.