UK grocery store investor Supermarket Income REIT has acquired a Sainsbury’s supermarket in Melksham, Wiltshire, and a Waitrose supermarket in Winchester, Hampshire, from LaSalle Investment Management for £64.8 mln (€73 mln).
The deals represent a combined net initial yield of 4.4%.
Ben Green, director of Atrato Capital, investment advisor to Supermarket Income, said: 'These two supermarkets are excellent additions to our portfolio. The lease lengths at 17 years and 24 years respectively are accretive to our portfolio WAULT of 16 years, whilst adding another Waitrose store brings further tenant diversification to the portfolio.'
The Sainsbury’s store was developed in the 1990s, and subsequently extended and refurbished in 2011. The 9-acre (3.64 ha) site comprises a 47,000 ft2 (4,366 m2) net sales area supermarket, an 8-pump petrol filling station, 290 parking spaces and purpose-built online fulfilment distribution docks, which support Sainsbury’s online grocery deliveries across the region.
The property is being acquired with an unexpired lease term of 17 years, with annual, upwards only, RPI-linked rent reviews (subject to a 4.0% cap and a 1.0% floor).
The Waitrose site was developed in 2009 and comprises a 25,500 ft2 net sales area omnichannel supermarket with 180 parking spaces. In addition, four residential apartments, a GP medical centre and 4 ancillary units are also included in the purchase. The Waitrose store has been acquired with an unexpired lease term of 24 years, with five yearly, upward only, RPI-linked rent reviews (subject to a 3.3% cap and a 1.0% floor).
The acquisitions are expected to complete in the coming weeks upon the completion of property related due diligence.
