Supermarket Income REIT has acquired a portfolio of Waitrose supermarkets in a sale and leaseback deal with the grocer for £74.1m.
The portfolio comprises six freehold supermarkets with an average gross internal area of 32,000 sq ft. 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 deal reflects a net initial yield of 4.4%.
All of the stores, in Eastbourne, Edenbridge, Ely, Oundle, Sandbach and Sudbury, form part of Waitrose’s UK online grocery fulfilment network and offer home delivery and/or click and collect.
Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: “All of the stores have an impressive trading record and are complementary to our existing portfolio, providing further tenant and geographic diversification.”
The deal is the latest in a growing number for Supermarket Income REIT after it raised £100m in February. Since then it has acquired a stake in a portfolio of Sainsbury’s store portfolio.
SUPR : Supermarket Income REIT buys Waitrose portfolio