Supermarket Income REIT has acquired a Tesco Extra and an adjoining Aldi supermarket in Leicester from British Land.
It has bought the two supermarkets for a total of £63.4m, reflecting a 6.4% yield.
The acquisitions mean Aldi, which is one of the fastest growing grocers in the UK, has become a new tenant in Supermarket Income REIT’s portfolio.
The 97,000 sq ft Tesco store also includes 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 seven years, with five-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 14,800 sq ft 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 five-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 33,000 sq ft net sales area, predominantly occupied by Costa, Greggs, WH Smiths and Pets at Home.
SUPR : Supermarket Income REIT acquires first Aldi store