Supermarket Income REIT, the UK supermarket real estate investor, announces that it has acquired the freehold of a Tesco Superstore, Lime Trees Road, Bristol, from a client of Aberdeen Asset Management for €31.2m (£28.5m), reflecting a net initial yield of 4.9%.
The purchase has been funded out of the equity proceeds of the IPO, with senior debt finance expected to be introduced in the near term.
The store comprises 55,000 ft² on a 5.7-acre site with more than 450 parking spaces. It is being acquired with an unexpired lease term of approximately 13.5 years, which is subject to annual, upward-only, RPI-linked rent reviews with a cap at 4% and a floor at zero and on full repairing and insuring terms.
Ben Green, Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said: "We are delighted to announce our second property, with €79m (£72m) now invested since our IPO last month. This Tesco Superstore is situated in a prime Bristol location and has a long history of strong trading performance. This investment will deliver an attractive inflation linked income stream and offers excellent asset upside potential over the longer term.”
