Supermarket Income REIT (SUPR) has snapped up a supermarket in south-east England for around £65 mln (€71 mln).
In another sign of the supermarket segment’s strong pricing during the Covid-19 pandemic, the REIT has invested in the Tesco Extra site in Suffolk.
The asset comprises 8,000 sq ft (943 m2) across nine acres, reflecting a 4.6% net initial yield.
The deal is the latest by Supermarket Income REIT following its oversubscribed £140 mln (€153 mln) placing programme in April 2020 after it acquired a Waitrose portfolio and a share in a Sainsbury’s portfolio earlier this year.
A spokesperson said: 'This is another attractive acquisition for SUPR as the UK long-income property market continues to open up. We expect to see this transaction, among others, establishing a strong case for further yield compression in the UK supermarket segment. This will support NAV growth for SUPR’s existing portfolio.'
In a separate development, SUPR has agreed a new revolving debt facility with Wells Fargo for a £60 mln funding line at a 2.1% cost.
