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UK Supermarket Research – update report and video released

In 2008 retail specialists AGL published a detailed research report on the UK Supermarket sector. Today, AGL are publishing an update in this increasingly important investment sector, together with a video presentation.

The update highlights some key trends over the past two years:

  • Supermarket investments held up well through the recession with yields dropping to all time lows when the funds came back into the market. Some astute buyers made very impressive returns in a very short period of time.
  • Rents are on the increase. Analysis from across AGL’s database shows that rents have risen 4.8% pa. in this period
  • All sale and leaseback transactions have been on the basis of RPI linked uplifts often capped and collared at something between 1 and 4% pa compound, highlighting retailers’ fears that rental growth will continue.

“Supermarkets continue to be in demand for both funds and private investors,” comments Matthew Bailey, Angermann, Goddard, & Loyd Director. “Security and guaranteed growth are very attractive Investment features in an uncertain world whilst the drive from operators for growth remains unabated.”

For a PDF of the Report click here.