LaSalle Investment Management Buys Plymouth Morrisons Supermarket for £22.5 Million

LONDON — LaSalle Investment Management has acquired a Morrisons supermarket in Plymouth for £22.5 million from an institutional investor, the firm announced on Oct. 12, 2026. The purchase was made on behalf of an existing UK Custom Account client, and JLL advised LaSalle on the transaction.

Plymouth Morrisons Supermarket Deal Details

The purpose-built store is at 282 Outland Road, Plymouth, PL3 5UQ. It comprises approximately 62,000 square feet of lettable area on a six-acre site, implying a price of approximately £363 per square foot. The property is fully let to Morrisons on a lease with 21 years remaining and CPI-linked rent reviews.

Outland Road is one of Plymouth's principal arterial routes. According to LaSalle, the store serves the largest exclusive supermarket catchment in the city and ranks among Morrisons' strongest-performing stores nationally. LaSalle's Strategy & Research analysis also indicates the supermarket ranks in the top quartile nationally for location quality across all grocery operators, the firm said.

LaSalle Investment Management's Investment Rationale

LaSalle said the acquisition reflects its continued focus on high-quality assets that combine secure, inflation-linked income with strong underlying real estate fundamentals. The firm said opportunities to acquire long-let supermarkets with dominant local market positions remain relatively rare, particularly while investor demand for defensive income-generating assets remains strong.

John Longworth, Portfolio Manager, UK Custom Accounts at LaSalle, said: "This acquisition adds long-term, inflation-linked income to our client's portfolio at an attractive yield, whilst also being underpinned by a high-quality asset, dominant in its catchment and with strong underlying retailer trade. We continue to see compelling opportunities in the grocery sector, where established assets benefit from resilient consumer demand, limited new supply and strong trading fundamentals."

Chris House, Senior Transactions Manager at LaSalle, said: "In a highly competitive market, sourcing high-quality grocery assets that combine secure income with attractive entry pricing is increasingly challenging. Plymouth's resilient economic outlook, combined with the store's extensive catchment, makes this supermarket a particularly compelling addition to our client's portfolio."

Plymouth Market and Grocery Investment Context

Plymouth is one of the largest urban centres in the South West and is expected to benefit from significant investment in defence and infrastructure, which LaSalle said should support long-term economic activity and consumer spending in the city.

The seller achieved a 23% price increase over the price paid three years earlier, indicating a significant revaluation of the asset despite the broader repricing of commercial real estate.

The transaction comes as European grocery investment recovered in 2025. Transaction volume rose 16% year over year to €6.1 billion, with the UK accounting for €1.8 billion. Grocery-anchored and convenience assets represented 18% of European retail investment, up from 15% in 2024. Prime supermarket yields averaged 5.8% across Europe in the fourth quarter of 2025, broadly stable.

Comparable 2026 grocery-property transactions were completed at net initial yields of roughly 6.6%, while a separate three-supermarket acquisition was reported at 6.9%. Asda and Morrisons assets have been cited at yields of approximately 6.5% to 7% or more, compared with roughly 6% to 6.5% for some other grocery formats. Supermarket Income REIT's 2026 portfolio comprised 84 supermarket sites valued at £1.7 billion, with a 5.9% net initial yield. The company also reported that grocery sales have grown at approximately 4.3% annually since its 2017 IPO, with UK grocery sales projected to reach £259 billion in 2026.

About LaSalle Investment Management and JLL

LaSalle Investment Management, a subsidiary of JLL, is a global real estate investment manager. As of the first quarter of 2026, it managed US$86.8 billion of assets in private and public real estate equity and debt investments. Its clients include public and private pension funds, insurance companies, governments, corporations, endowments and private individuals. LaSalle sponsors separate accounts, open- and closed-end funds, public securities and entity-level investments.

The Plymouth purchase adds a single-tenant, long-leased grocery asset to a UK Custom Account client's portfolio, with rent reviews linked to CPI.

Sources

• LaSalle Investment Management: LaSalle acquires £22.5 million Plymouth supermarket