Sainsburys forms JV as sales rise

Like-for-like sales in the quarter rose by 4.1 per cent, and by 6 per cent including fuel. Total sales for the quarter rose 5.1 per cent excluding fuel. Annoucing its JV with British land Sainsburys said it will invest £273m to create a 50:50 joint venture which will hold 39 stores, with a valuation of £1.2bn and a net equivalent yield of 5.1%. Creation of this JV unlocks the opportunity to significantly develop these stores and deliver an improved customer offer. The JV will seek to maximise the full potential of these development opportunities, including extending up to 25 sites by an estimated 500,000 sq. ft. of net selling area. Justin King, chief executive, said 'This venture is an excellent opportunity for Sainsbury's to increase our interest in the future extension and development of many of our most important stores. This will enable us to enhance the customer offer, increasing both the trading and property value of these assets.

This transaction sits within Sainsbury's strategy to actively develop the property estate and we are delighted to be working alongside British Land to deliver these development opportunities.'