Tesco And Sports Direct Properties On Sale For £2.6 Million

Properties occupied by Tesco and Sports Direct in Market Harborough town centre have been put up for sale for £2.6 million.

It follows a decision by Harborough District Council to sell the premises, which were bought in 2019 by its property company, now being closed down after suffering major financial losses.

The sale also includes five flats above the Tesco store.

The properties are being marketed as a “Prominent Reversionary Retail Investment Opportunity”, with an estimated net rental value of £265,500 a year.

Properties occupied by Tesco and Sports Direct in Market Harborough town centre have been put up for sale

Harborough District Commercial Services Ltd (HDCS) was formed to manage and operate property assets, but the council says changing high street conditions, including the rise of online shopping and the impact of the Covid-19 pandemic, have affected property values and commercial returns.

The company bought the properties in a deal worth £3.8 million in 2019.

Lease extensions were secured with Tesco, while a new letting was agreed with Sports Direct for the Commons retail unit.

However, the council says the arrangements are less commercially advantageous than previous deals, while the flats now require investment that would be better managed by a new owner.

Shareholders, made up of members of the ruling Conservative administration, agreed earlier this year that the assets should be marketed for sale through an agent.

The company will then be wound up as soon as practicable once the properties are sold, with any remaining assets transferred back to the council.

Earlier this month, independent traders in Market Harborough criticised the council after it emerged Sports Direct was given a year’s free rent on its town-centre premises.

The retailer opened in the town last November after signing a ten-year lease on the unit previously occupied by Poundland, but details of the agreement have only recently come to light.