DTZ Investors, a prominent investment firm, has completed the purchase of a key supermarket site in London’s Islington borough for a sum of £56.25 million. The property, currently leased to the well-known supermarket chain Sainsbury’s, spans 2.5 acres and includes a 67,426 square foot building with a 131-space car park.

The supermarket has been a tenant at this location since 1984, and the building has received an EPC B rating. Sainsbury’s has recently committed to a new 20-year lease, extending their stay until March 2044. The lease agreement includes provisions for annual rent adjustments tied to inflation, environmentally friendly lease terms, and a guarantee from Sainsbury’s parent company.

Located in the affluent North London area of Islington, the property enjoys a prime position near the Angel Shopping Centre. Sainsbury’s is reportedly considering significant investment in the store following the agreement of the new lease. Additionally, the site’s current low density presents opportunities for future development and intensification.

The acquisition is part of DTZ Investors’ 2023 investment program, focusing on assets that provide stable income with potential for future capital growth.

The property’s prime location and underdeveloped status offer promising prospects for further enhancement or redevelopment.

Sainsbury’s extended lease reflects a strong commitment to the location and may signal the retailer’s confidence in the site’s ongoing success.

The deal was facilitated by Knight Frank on behalf of DTZ Investors, while Savills represented Lothbury, the vendor. Both parties expressed satisfaction with the transaction, highlighting the property’s rare and exceptional characteristics.

This acquisition underscores the continued interest in core supermarket properties, especially in prime urban locations, and reflects broader trends in the retail real estate market.