Supermarket Income REIT buys Bristol Tesco Superstore – Supermarket Income REIT has acquired the freehold of a Tesco Superstore, Lime Trees Road, Bristol, from a client of Aberdeen Asset Management for GBP28.5 million (net of acquisition costs), 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 sq ft 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 GBP72 million 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.”
The store achieved some notoriety when it was built as Tesco chopped down the lime trees in Lime Trees Road to make way for the store.
SUPR : Supermarket Income REIT buys Bristol Tesco Superstore