Supermarket Income REIT has acquired a Tesco Extra, and an Aldi supermarket in Beaumont Leys, Leicester from British Land. The Tesco store was originally developed in the 1980’s and subsequently extended and refurbished in 2007 to a 97,000ft² net sales area Tesco Extra. The site has parking provision for over 700 vehicles and a 12-pump petrol filling station. In addition to the supermarket, the Tesco demise also comprises purpose-built online fulfilment facilities which support Tesco’s online grocery deliveries across the 262,000 population catchment area. It is being acquired with an unexpired lease term of 7 years, with 5-yearly, upwards only, open market rent reviews. The next rent review is in February 2023.
The Aldi supermarket is opening this year and extends to 14,800ft² of net sales area. It has been acquired with an unexpired lease term of 25 years (with break options at years 15 and 20) with 5-yearly, upwards only, RPI-linked rent reviews (subject to a 2.5% cap and 1.0% floor). Adjoining the Tesco Extra and the Aldi supermarket is a parade of units comprising 33,000ft² net sales area, predominantly occupied by Costa, Greggs, WH Smiths and Pets at Home. The total consideration is €70.5m (£63.4m) reflecting a combined net initial yield of 6.4%.
Ben Green Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said: “We are pleased to have acquired a further omnichannel Tesco Extra, with this asset operating as a key online grocery fulfilment hub for Tesco. The Aldi acquisition provides further tenant diversification for the portfolio. Furthermore, we believe this site offers valuable asset management opportunities.”