Supermarket Income REIT has acquired a Tesco Extra supermarket in Mansfield, Nottinghamshire, from the Charities Property Fund (CPF) for €52m (£45m) (net of acquisition costs), reflecting a net initial yield of 5.2%. Developed in 2007, the nine-acre site is at a prominent roadside junction in the town centre. It comprises a 90,000ft² commercial space, a parking facility for approximately 530 vehicles and a 12-pump petrol filling station. It is being acquired with an unexpired lease term of 20 years with annual, upward-only, RPI-linked rent reviews (subject to cap and floor) on fully repairing and insuring terms. The next rent review is in March 2020.
Ben Green, Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said: “This acquisition increases both the average unexpired lease term and the net initial yield of our portfolio. We are especially pleased to have been able to use Supermarket Income REIT shares as part consideration in 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”.
