UK grocery store specialist investor Supermarket Income REIT has acquired a Tesco omnichannel supermarket in Stoke-on-Trent, Staffordshire, for £34.7 mln (€40 mln), excluding acquisition costs, reflecting a net initial yield of 7.5%.
The acquisition comprises a 54,451 ft2 (5,058 m2) net sales area omnichannel supermarket and petrol filling station which sits on an 8.7 acre (3.5 ha) site.
The store was built in 1994 and supports Tesco’s online fulfilment operation via both home delivery vans and customer click & collect.
The supermarket is being acquired with an unexpired lease term of 11 years and is subject to annual RPI-linked rent reviews, subject to a 4% cap and a 0% floor.
The acquisition has been funded through the drawdown of the company’s existing revolving credit facility.
The company has also announced that it has entered into an amended and restated investment advisory agreement with its investment adviser, Atrato Capital, and its alternative investment fund manager, JTC Global AIFM Solutions.
The principal amendments to the existing agreement relate to the termination provisions of the agreement, essentially allowing the company to terminate the arrangement in case of a takeover or delisting, and clarifying outstanding fees in case of termination.
