Supermarket Income REIT has acquired a portfolio of supermarkets via a sale and leaseback transaction with Waitrose & Partners for c.€82m (£74.1m) (excluding acquisition costs), reflecting a net initial yield of 4.4%. The portfolio comprises six freehold supermarkets with an average gross internal area of 32,000ft². The stores are let to Waitrose on new 20-year leases with a tenant-only break option in year 15 and are subject to five-yearly, upward-only, CPIH-linked rent reviews (subject to a 3% cap and 1% floor). The stores form a key part of Waitrose's UK online grocery fulfilment network and offer home delivery and/or click and collect. Waitrose will continue to trade from the stores as normal with no change from a customer or Waitrose Partner perspective.
Ben Green, Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said: "We are very pleased with this transaction. All of the stores have an impressive trading record and are complementary to our existing portfolio, providing further tenant and geographic diversification".
