Under the terms of the deal with Royal & Sun Alliance Lifeand Pensions, Somerfield has agreed to lease the complex back for25 years at an initial rent of $1.58 million ($2.5 million) perannum with five-yearly rent reviews. This equates to £4.75 ($7.50)per sf.

Last month Somerfield agreed a £37.6 million ($59 million) saleand leaseback deal with Prudential Assurance on a new distributioncentre in Lea Green, St Helens, Merseyside. The 613,00-sf buildingwill become the distribution hub for Somerfield's discountsubsidiary Kwik Save, and on completion in May 2003 Somerfield willpay a rent of £2.8 million ($4.4 million) per annum.

Somerfield executive chairman John von Spreckelsen said: "Thesale and leaseback of the distribution centre at Wellingborough isour second successful sale and leaseback transaction in three weekswhich together have released £59 million ($93 million) in cash forcontinuing investment in the business, in particular in thesuccessful store refit programme.