Challenge

Vail Williams was appointed by longstanding client, Southern Co-operative, to provide strategic property advice to help release capital to be reinvested in other areas of the business.

Working with our client to understand their strategic business aims, our investment team proposed the sale and lease back of 11 convenience store properties across two portfolios in Hampshire.

How we helped

• Initially sold six Co-Op Convenience stores based across southern Hampshire for at a Net Initial Yield (NIY) of 5.25%.
• Subsequently worked with the client to complete the sale of a further five convenience stores in Hampshire for a better yield of just over 5%.
• Drawing on our market knowledge, we marketed the portfolios on a semi-exclusive basis
• Achieved the balance right between securing appropriate parties and generating demonstrable best price for the client.
• Identified a private investor who would pay the best price for both transactions, whom our client was also content with as a future landlord
• Negotiated both sale and leaseback transactions, drawing on the regional expertise of lease advisory team for rental values based to inform the leaseback agreements
• Our building consultancy team also completed schedules of condition for the leasebacks to protect our client from potential future repairing liabilities.