UK supermarket investor Supermarket Income REIT has acquired a Tesco Extra supermarket in Mansfield, Nottinghamshire, from the Charities Property Fund (CPF) for £45 mln (€52 mln).
The price reflects a net initial yield of 5.2%.
Developed in 2007, the town centre site comprises a 90,000 ft2 (8,360 m2) Tesco Extra, approximately 530 parking spaces and a 12-pump petrol filling station. It is being acquired with an unexpired lease term of 20 years.
The consideration comprises a £33.7 mln cash sum from the trust's recent £45 mln equity placement, and the issue to CPF of 10,922,330 new shares at a price of 103 pence per share. The price represents an 8% premium to the prevailing net asset value per share.
CPF has agreed various restrictions on any disposal of the shares over the next 12 months.
'This acquisition increases both the average unexpired lease term and the net initial yield of our portfolio,' said Ben Green, director of Atrato Capital, investment advisor to Supermarket Income REIT.
'We are especially pleased to have been able to use Supermarket Income REIT shares as part consideration in a property acquisition for the first time. We believe there are many investors who own individual supermarket properties that would benefit from swapping their ownership into shares in Supermarket Income REIT, gaining our diversification and specialist management.'
