The joint venture involves three properties initially with an aggregate value of£113.4 million. Sainsbury's will contribute two freehold stores at Thanet, Kent and Wandsworth. Land Securities will contribute a Sainsbury’s supermarket that it owns in Hull. The stores will all be let to Sainsbury's on new 25-year leases.
The venture, called the Harvest Limited Partnership, will run for an initial term of seven years. It is envisaged that further suitable retail properties will be added to the portfolio in future.
Sainsbury's property director Peter Baguley said: “This joint venture is part of the active management of our property portfolio outlined in May and gives us access to the specialist development skills of Land Securities. It allows us to maximise the development potential at each site, improving our customer offer and the value of the property, while retaining operational control and flexibility.”
In a separate transaction, Land Securities has exchanged contracts to sell two existing Sainsbury’s stores in Winchester and Wednesfield to Sainsbury's.
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