Supermarket Income REIT, the real estate investment trust with secure, inflation-linked, long-dated income from grocery property, announces the acquisition of a Sainsbury’s omnichannel supermarket in Huddersfield, West Yorkshire, for a total purchase price of c. €59.1m (excluding acquisition costs), reflecting a net initial yield of 7.6%.
The acquisition of this top quartile performing food store comprises a c. 1ha gross internal area omnichannel supermarket and a petrol filling station, situated on a c. 3.4ha site.. Sainsbury’s has traded from the site for over 30 years. The store is an online fulfilment hub for the operator with 12 home delivery vans and Click & Collect services. The store is being acquired with an unexpired lease term of 11 years with annual RPI-linked rent reviews (subject to a 4% cap and a 0% floor).
The acquisition has been funded through the drawdown of the Company's existing debt facility. Following the acquisition, the Company’s LTV was 39%, and the portfolio WAULT was 12 years. The Acquisition represents attractive value at pricing agreed upon earlier in the year. We are now seeing heightened levels of competition for assets. This provides the Board with further confidence in property valuations.
Ben Green, Principal of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT plc, said:??“The team has been, and remains, incredibly active across a range of strategic and operational developments, all driven by our focus on delivering value for shareholders. We are pleased that shareholders will have the ability to vote on two proposals – to make further improvements to the cost base and to provide greater flexibility for accretive acquisitions – at the upcoming AGM. We are also very pleased to announce this UK acquisition. We remain highly focused on driving returns, and we continue to explore all avenues to deliver value for shareholders of Supermarket Income REIT.”
Image source - Pexels.
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