First World Hybrid Real Estate Plc (“FWHRE” or “the Company”)
The Board of First World Hybrid Real Estate Plc is pleased to announce that on 2 August 2022 the Company exchanged contracts for the acquisition of a property known as Tesco Superstore, Plymouth Road, Tavistock PL19 9ON, for an agreed purchase price of £11,224,000.
The property comprises a 25 451 sqft modern and high-quality free-standing food-store. The property is let to Tesco Stores Ltd on full repairing and insuring terms for 25 years which commenced 8 December 2014. The tenant has the right to break the lease after the 20th year and accordingly, the certain lease term remaining is more than 12 years. The passing rent is £509,047 per annum, with upward only RPI linked rent reviews every 5 years, collared and capped at 1% and 4% per annum respectively. As a result, the property is expected to produce an income yield at the next review in December 2024 of 5%.
Tesco is the largest food store operator in the UK with a market share of 27.3% (Kantar). The 2021 financials reflect a turnover in excess of £54bn and with net assets of circa £5bn this will be one of the strongest tenants in the FWHRE portfolio.
The transaction will be fully funded out of existing cash resources and no debt will be raised. Completion is scheduled to take place on Tuesday 9 August 2022.
This announcement was made on behalf of the Company by FIM Capital Limited.