Supermarket Income REIT, the grocery-focused real estate investment trust, has acquired a Tesco supermarket in Sheffield, Yorkshire, for £73.2 mln (€86 mln), representing a net initial yield of 4.5%.
The store was developed for Tesco in 2011 and occupies a 7.0 acre (28,000 m2) site comprising an 88,000 ft2 (8,175 m2) net sales area supermarket, a 12-pump petrol filling station and 640 car parking spaces.
The store serves as a hub for omnichannel fulfilment in the region, operating 14 home delivery vans and click & collect functionality. The asset is being acquired with an unexpired lease term of 17 years, with annual, upwards only, RPI-linked rent reviews.
Ben Green, director of Atrato Capital Limited, the investment adviser to Supermarket Income REIT, said: 'This latest acquisition further strengthens Supermarket Income REIT’s portfolio of omnichannel supermarkets, which represent the future model for grocery in the UK.
'The store has attractive underlying fundamentals and a lease that is both index-linked and accretive to the portfolio in respect of its unexpired lease term.'
Supermarket Income REIT currently holds a portfolio of 65 supermarkets, all let to leading UK supermarket operators, diversified by both tenant and geography.
The vompany’s ordinary shares were admitted to trading on the Main Market of the London Stock Exchange, Specialist Fund Segment, on 21 July 2017.
