Supermarket Income REIT buys a TESCO Extra – Supermarket Income REIT has acquired a Tesco Superstore in Thetford, Norfolk, from M&G Real Estate for GBP43.2 million, reflecting a net initial yield of 5.35% or 5.55% after the next agreed RPI-linked rent review in December 2017.
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 78,000 sq ft (gross) on a 10.4-acre site with more than 500 parking spaces and a petrol filling forecourt. It is being acquired with an unexpired lease term of approximately 12.5 years, which is subject to annual upward-only, RPI-linked rent reviews with a cap at 4% and a floor at zero.
Ben Green, Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said: “We are delighted to announce the first asset purchase by Supermarket Income REIT. This is a store with a strong trading record on site which is adjacent to the future Kingsfleet housing development. The investment will deliver attractive and growing income, while its location means that there is excellent asset upside potential over the longer term“.
SUPR : Supermarket Income REIT buys a TESCO Extra