A DEAL has been struck to sell off Altrincham’s Asda food store for £22.5million.

Greater Manchester Pension Fund has secured the site, in George Richards Way, Broadheath, from Aberdeen Standard Investments.

Under the property transaction, the purchaser has secured the whole of the 5.83 acre location, including the 71,408 square foot store, a 385-space car park and the petrol filling station there.

Real estate advisors Colliers International, who acted on behalf of Aberdeen Standard, says that the site had a net initial yield of 4.75 per cent, based on the expected ‘topped-up’ rental income following a forthcoming review in 2020.

Asda has a 25-year lease on the premises, with only four of those currently expired, according to Colliers.

This generates rents of just over £1,00p a year, which is estimated to increase to £1,140, following next year’s rent review.

Tom Edson, a director in Colliers’ retail capital markets team, said: “As the second largest grocery retailer in the UK with a 15.4 per cent market share,

“Asda investments are one of the rarest supermarket commodities. This, combined with the attractive inflation-linked long lease on a store located in an affluent Manchester commuter town were compelling reasons for the purchaser to acquire the property.”

Haseeb Hassan, senior portfolio manager at Aberdeen Standard Investments, added: “From initially funding this as a development opportunity almost five years ago, we were delighted to sell the asset in line with our strategy for the fund and realise the capital.”

David Winterbottom, at Avison Young, added: “Our client is delighted with the acquisition of the investment which offers long term income to the Asda benefiting from fixed inflationary rental uplifts throughout the lease.

“We have been keen to invest in some ‘defence stock’ during these uncertain times and this offers the criteria we have been looking for.”

Colliers advised Aberdeen Standard on the sale. GMPF was advised by Avison Young.

The pension fund has a number of investment property holdings across Greater Manchester and beyond, as part of their main property and venture fund portfolios.

The former owns the likes of Chadderton Shopping Centre, properties along the Kings Road in London and various industrial estates. And the venture fund controls Martland Park in Wigan, Chorlton Shopping Centre and Old Haymarket in Liverpool, among others.