Supermarket Income REIT has bought a Morrisons supermarket in northern England from Opus North for £51.7m (€58m).
The UK supermarket real estate investor said the amount paid for the 113,000sqft asset in Sheffield, excluding acquisition costs, reflects a net initial yield of 4.9%. It is being acquired with an unexpired lease term of 21 years.
The supermarket, located on an 8.4-acre site in Hillsborough Barracks, comprises around 860 parking spaces and a 12-pump petrol filling station.
Supermarket Income REIT said it has also arranged a new five-year £52.1m, interest-only loan facility with Bayerische Landesbank. The loan is secured against the new Morrisons supermarket in Sheffield and a Sainsbury’s supermarket in Ashford.
Ben Green, a director of Atrato Capital, the investment advisor to Supermarket Income REIT, said: “This Morrisons’ supermarket is an excellent addition to our growing portfolio. The property benefits from strong fundamentals, attractive lease terms and provides further tenant diversification.
“This purchase completes our asset acquisition plan, which we set out at the time of our £65m on capital raise in May.”