Grocery real estate investment trust Supermarket Income REIT has acquired four supermarkets in the UK for £76.4 mln (€90 mln), reflecting a combined net initial yield of 5.1%.
They include the 2,740 m2 Tesco in Bishops Cleeve, Cheltenham with 245 parking spaces and the 2,071 m2 Tesco in Newton-le-Willows, Merseyside with 172 car parking spaces.
Both come with an unexpired lease term of 12 years and are subject to 5.0% rental cap and a 0.0% floor.
For its part, the central Glasgow site is anchored by a 1569 m2 Sainsbury’s supermarket with an unexpired 10-year lease and an M&S Foodhall with an unexpired four-year lease.
Both are subject to five-yearly, upwards only, open market rent reviews.
Adjoining the two retail spaces are other health and convenience services occupied by tenants including Boots, Superdrug and Costa Coffee.
Ben Green, director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT, said: ‘These acquisitions provide further diversification to the Company’s growing portfolio. The strong trading M&S Foodhall adds a third M&S to SUPR’s portfolio and we are pleased to be taking on the adjoining non-grocery tenants in Glasgow. These adjoining units add to our existing non-grocery assets, which continue to represent less than 10% of our overall portfolio by value.’
The properties were acquired from different vendors, and the acquisitions were partly funded through the recently announced £412.1mln (€488.9mln) unsecured credit facility.
Supermarket Income REIT owns 73 supermarkets (directly or via JV) that are let to leading UK supermarket operators.
