Net lease specialist REIT WP Carey has acquired a supermarket and its associated petrol station situated in Doncaster, UK, for £23 mln (€27 mln).
Both assets are triple-net leased to one of the UK's largest supermarket brands, Morrisons.
The supermarket and petrol station both have a history of strong performance and due to strict planning laws, licensing requirements and high land value costs, there are significant barriers for new entrants, thereby increasing the value of the established sites.
Long-term net leases with built-in rent growth: The supermarket and petrol station are triple-net leased for 14 years and 13 years, respectively, with inflation-linked rent increases.
The UK remains a core market for WP Carey, with approximately €1.2 bn invested in the country since its first UK investment in 1999.
Morrisons is committed to sustainability and launched its sustain programme focused on three core pillars: the planet, their communities and British farming. In December 2023, the company reported it had beat its targets to reduce plastic packaging by 2025.
Karolis Adlis, executive director, European investments, WP Carey, said: 'We’re delighted to kick off the new year by adding another high-quality facility to our portfolio, and one that is leased to one of the U.K.’s largest supermarket brands.
'The UK grocery retail space has demonstrated strong resilience, continuing to grow amidst the wider challenges presented within the current economic environment. We look forward to working with Morrisons, supporting the business’ evolving needs over the coming years.'
