Supermarket Income REIT has acquired a supermarket in east central England from Legal and General Pensions for £53m (€60.3m).

The London-listed supermarket real estate specialist said it bought a Tesco Extra supermarket in the North Lincolnshire town of Scunthorpe.

Supermarket Income said the asset is being acquired with an unexpired lease term of 22 years.

The amount paid reflects a net initial yield of 5.1%, it said, adding that the deal was funded from the proceeds of a £65m equity placing on 25 May 2018.

Developed in 2002, the store totals 98,000sqft on an 8-acre site with more than 580 parking spaces, an 8-pump filling station and dedicated online fulfilment distribution docks.

Ben Green, a director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: “We are delighted to continue our track record of rapidly deploying our capital in high-quality, omni-channel supermarkets. This store has an impressive trading record on site and plays an important role in Tesco’s online fulfilment network.

“This investment is a strong addition to our growing portfolio, increasing both the weighted average unexpired lease term and net initial yield of the Company’s portfolio.”

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