WP Carey bags Morrisons supermarket

New York-listed REIT WP Carey has invested £23m in a Morrisons supermarket and associated petrol station in Doncaster. The supermarket and petrol station are triple-net leased for 14 years and 13 years respectively, with inflation-linked rent increases. The REIT, which specialises in corporate sale-leasebacks, build-to-suits and buying single-tenant net lease properties, said the UK remains a “core market”. It has invested around €1.2bn (£1bn) in the UK since 1999. It added that the supermarket and petrol station both have a “history of strong performance” and that strict planning laws, licensing requirements and high land value costs mean there are significant barriers for new entrants, thereby increasing the value of the sites. Karolis Adlis, executive director, European investments at WP Carey, said: “The UK grocery retail space has demonstrated strong resilience, continuing to grow amidst the wider challenges presented within the current economic environment. “We look forward to working with Morrisons, supporting the business’s evolving needs over the coming years.” To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews