Saturday, December 16, 2017

Supermarkets’ property value slashed nearly a 5th in 2 years

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The UK‘s largest grocers have seen a fall in the value of their property by nearly a fifth since 2015 as out-of-town units are sold.

According to Saving Stream, property portfolios of the country‘s leading supermarkets has fallen by 17 per cent to £37.8 billion in the past two years.

Changing consumer habits have forced grocers to offload units that are out-of-town, selling them to developers to be converted into housing.

Tesco sold off 14 unwanted sites in 2010 for around £250 million for potential conversion into 10,000 residential properties.


READ MORE: Ocado confirms beginning of the end for grocery price war


“UK supermarkets are increasingly looking at reversing a long-term strategy of land-banking,” Saving Stream‘s Liam Brooker said.

“Opportunistic purchases of sites for potential future stores were intended to provide a strategic advantage, build market presence and lock out competitors from certain areas.

”Developers could be major beneficiaries as supermarkets start to scale back their property portfolios, with smaller sites just as likely as larger development opportunities to be offloaded.”

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