Charities Property Fund buys Tesco store for £43m

Finance | Tania Mason | 23 Apr 2010

The Charities Property Fund has purchased a Tesco Extra supermarket in Nottinghamshire for £43m, meaning the Fund is now fully invested.

In the last five months the Fund has invested £100m through six transactions, five of which were sourced off-market.

Fund director Harry de Ferry Foster said the six properties provide “excellent income quality”. They are all let, compared to the Investment Property Databank void rate of 12.5 per cent, and have a weighted average length to lease expiry of 14.7 years, compared to an IPD average of 10.2 years.

The Tesco store in Mansfield, Nottinghamshire, is let on a 20-year lease and will provide an initial yield of 5 per cent. Rent reviews are annual and based on inflation.

The acquisition was facilitated by property fund manager Cordea Savills.

The Charities Property Fund, which was the first common investment fund available to all charities that invests directly in UK commercial property, has more than 1,100 charity investors and is currently worth £328m. It is still accepting new investors.

Directory: Charities Property Fund

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