Supermarket Income REIT has acquired a Tesco supermarket in Bracknell from a client of CBRE Global Investors for €42.8m (£39.5m, excluding acquisition costs), reflecting a net initial yield of 5.7%. Developed in the early 1990's, Tesco has a long history of trading from this prominent 7.3-acre site which comprises a purpose-built food store and a 400-space surface car park. The store has several purpose-built online distribution docks, supporting Tesco's online grocery business across the region. The asset is being acquired with an unexpired lease term of 10 years with annual, upward only, RPI-linked rent reviews (subject to a 4% cap and 0% floor). The acquisition will be financed via a €43.3m (£40m) increase of the €108.3m (£100m) RCF facility provided by HSBC.
Ben Green Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said: "This omnichannel Tesco supermarket is an excellent addition to our portfolio. The store is situated in a prime location and is an important online grocery fulfilment hub, supporting both home delivery and click and collect."