Legal & General Property (LGP) has completed the acquisition of a portfolio of three supermarket stores, located in Quinton, Ludlow and Market Deeping, in the Midlands, in an off market sale and leaseback transaction with Tesco Stores Limited. The portfolio was acquired on behalf of the Legal & General UK Property Unit Trust for circa £46.6 mln (EUR 54 mln).

Let on completion to Tesco Stores Limited on new 20-year leases, the portfolio generates an initial rent of over £2.4 mln.

'This purchase is in line with the fund's acquisitions strategy, which seeks to identify and secure well located assets. The deal also reflects our ongoing belief that there is value in parts of the retail sector, particularly supermarkets, which continue to offer strong underlying rental growth potential,' said fund manager Matt Jarvis.

The purchase follows a number of recent acquisitions completed on behalf of PUT, including an industrial scheme in Leamington Spa, Whitehall One in Leeds and the Tradeteam distribution unit in Hams Hall earlier this year.