Supermarket Income REIT acquires regional Sainsbury’s for €68.9m (GB)

Supermarket Income REIT acquires Sainsbury’s supermarket for €68.9m (GB)

Supermarket Income REIT has acquired a Sainsbury's supermarket in Cheltenham, Gloucestershire, from Legal & General for €68.9m (£60.4m), reflecting a net initial yield of 5.25%. Originally developed in the 1980s, the store was extensively refurbished and extended in 2007. Sainsbury's has a long history of trading from this prominent seven-acre site.


The supermarket comprises 62,000 ft² net sales area with a 12-pump petrol filling station and more than 390 parking spaces. The store has multiple purpose-built distribution docks and supports Sainsbury's online grocery fulfilment in the local area. It is being acquired with an unexpired lease term of 13 years with five-yearly, upward-only, RPI-linked rent reviews (subject to a cap and floor).


Ben Green, Director of Atrato Capital, the Investment Advisor to Supermarket Income REIT, said: "With strong fundamentals, this Sainsbury's supermarket is an excellent addition to our growing portfolio of omnichannel stores and provides further investment diversification."

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