UK supermarket real estate investor Supermarket Income REIT has acquired a Tesco Extra supermarket in Cumbernauld, Scotland, for £50 mln (€56.6 mln) from Legal & General.
The deal volume reflects a net initial yield of 5.5% after the next agreed RPI-linked rent review in March 2018.
'This store has an impressive trading record on site and plays an important role in Tesco’s Scottish online fulfilment network,' commented Ben Green, director of Atrato Capital, investment adviser to Supermarket Income REIT.
'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.'
The 9.5 acre (3.8 ha) site occupies a town centre location and comprises the 117,000 ft2 (10,870 m2) Tesco Extra store, 570 parking spaces and a 12-pump filling station.
The asset is being acquired with an unexpired lease term of 23 years with annual, upward-only, RPI-linked rent reviews, the REIT said. The purchase has been funded out of the £20 mln equity placing issued on the 17 November and from the company's revolving credit facility.
