The company that owns Northampton's Grosvenor Centre has splashed out £52 million on a 24-hour Tesco Extra in the north of the county, three years after its plans to extend the centre were "terminated".
Multinational financial services company Legal and General has bought Kettering’s Tesco Extra, its fund manager has confirmed, and intends to keep the site as a superstore.
The foodstore and petrol filling station in Carina Road, was previously owned by Aviva Investors.
Legal & General Investment Management opposed the Rushden Lakes development and held off on a £250 million plan to extend the centre as a result.
The firm saw its plans eventually "terminated" in 2014 by Northampton Borough Council, after several years without progress.
Fund manager at Legal & General Matt Jarvis, said: “The Tesco Extra store in Kettering is purchased as a long-term hold for us.
“The store attracts a strong customer base and footfall and, as such, is an attractive acquisition for us.
“It will continue to operate as a Tesco Extra.”
The 100,000 sq ft 24-hour store, which originally formed part of Tesco’s sale and leaseback portfolio, underwent a major refurbishment in 2009, which included an extension to the car park and an increase in sales floor space and storage areas.
It currently employs hundreds of staff in the local area.
Colliers International’s head of retail capital markets James Watson said: “The market for prime retail food stores has accelerated in H2 (the second half of the financial year).
“We’ve seen a significant uptick in transactional activity in line with a wider trend from investors for securing long-dated income.
“Interestingly, this deal also highlights the return of institutional money to the large store market after a relatively quiet 2016.”