Supermarket Income REIT has purchased four supermarkets for a total purchase price of €90.6m (£76.4m, excluding acquisition costs), reflecting a combined net initial yield of 5.1%. Acquired from different vendors, the purchases consist of two Tesco supermarkets, located in Cheltenham and Merseyside, as well as a central Glasgow site anchored by a Sainsbury’s supermarket and an M&S Foodhall.
The Tesco in Bishops Cleeve, Cheltenham, comprises a 29,501ft² net sales area supermarket located on a 4-acre town centre site with 245 car parking spaces. The store is being acquired with an unexpired lease term of 12 years and is subject to annual RPI-linked rental uplifts (subject to a 5% cap and a 0% floor).
The Tesco in Newton-le-Willows, Merseyside, comprises a 22,298ft² net sales area supermarket located on a 2.9-acre town centre site with 172 car parking spaces. The store is being acquired with an unexpired lease term of 12 years and is subject to annual RPI-linked rental uplifts (subject to a 5% cap and a 0% floor).
The city centre Glasgow site comprises a 16,893ft² net sales area Sainsbury’s supermarket with an unexpired lease term of 10 years and an M&S Foodhall with an unexpired lease term of four years, both subject to 5-yearly, upwards only, open market rent reviews.
Ben Green, Director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT plc, said: “These acquisitions provide further diversification to the Company’s growing portfolio. The strong trading M&S Foodhall adds a third M&S to SUPR’s portfolio and we are pleased to be taking on the adjoining non-grocery tenants in Glasgow. These adjoining units add to our existing non-grocery assets, which continue to represent less than 10% of our overall portfolio by value.”