Supermarket Income plans fundraise as it picks up Tesco from Ediston – Ediston Property Investment Company (EPIC) has sold a Tesco Superstore, which forms part of Prestatyn Shopping Park, to Supermarket Income REIT. The sale price was £26.5m, which is equivalent to a net initial yield of 5.3%, in line with the property’s valuation as at 31 December 2020 and above the December 2017 acquisition price. The sale completed on 3 March 2021. Ediston is keeping the remainder of the retail park, which extends to c. 91,500 sq. ft. across 14 units. The retail park is let to 13 tenants, with M&S as an anchor, and they say that it has asset management angles to exploit.
Supermarket Income REIT gains a six acre site, developed in 2013, with a 46,000 sq ft net sales area supermarket and 455 car parking spaces, plus an 8-pump petrol filling station. It is being acquired with an unexpired lease term of 12 years, with 5-yearly, upwards only, RPI-linked rent reviews (subject to a 5.0% cap and a 1.0% floor). The store forms a key part of Tesco’s online grocery fulfilment network in the region.
Following this, Supermarket Income REIT intends to try to raise £100m by issuing shares at 106p. This represents a discount of 3.2% to the closing price of 109.5p on 3 March 2021 and a 1.9% premium to the last reported EPRA NTA per share as at 31 December 2020 of 104p.
It says it has a near-term pipeline of four assets with an aggregate value of approximately £230m plus a further pipeline of nine assets with an aggregate value of approximately £184m
SUPR : Supermarket Income plans fundraise as it picks up Tesco from Ediston