Supermarket Income REIT plc (LON:SUPR), the real estate investment trust providing secure, inflation-linked, long income from grocery property in the UK, has announced the acquisition of a Tesco omnichannel supermarket in Worcester, for a total purchase price of £38.3 million (excluding acquisition costs), reflecting a net initial yield of 6.0%.
Tesco has been operating at the 6.5 acre site for over 30 years. The site comprises a 47,297 sq ft net sales area supermarket, a petrol filling station and 515 car parking spaces. The store is also an online hub for Tesco operating nine home delivery vans and a Click & Collect facility. The store is being acquired from British Steel Pension Fund, with an unexpired lease term of 12 years, with annual upwards only RPI-linked rent reviews (subject to a 4.0% cap and 0.0% floor).
The acquisition is being funded from the first tranche of sales proceeds of the Company’s stake in the Sainsbury’s Reversion Portfolio (the “SRP”).
Ben Green, Director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT plc, said:
“This acquisition further strengthens SUPR’s portfolio of top trading omnichannel supermarkets, evidencing our ability to redeploy the proceeds of the SRP sale at yields which are accretive to the portfolio.”
Supermarket Income REIT plc (LON: SUPR) is a real estate investment trust dedicated to investing in grocery properties which are an essential part of the UK’s feed the nation infrastructure. The Company focuses on grocery stores which are omnichannel, fulfilling online and in-person sales. All of the Company’s supermarkets are let to leading UK supermarket operators, diversified by both tenant and geography.
