Supermarket Income REIT purchase Sainsburys store in Cheltenham
The Supermarket Income REIT (LSE: SUPR) has purchased another Sainsbury’s supermarket, this time in Cheltenham, Gloucestershire, from Legal & General for £60.4m, giving a net initial yield of 5.25%.
Originally developed in the 1980s, the store was extensively refurbished and extended in 2007. Sainsbury’s has a long history of trading from this prominent seven-acre site.
The supermarket comprises 62,000 square feet net sales area with a 12-pump petrol filling station and more than 390 parking spaces. The store has multiple purpose-built distribution docks and supports Sainsbury’s online grocery fulfilment in the local area. It is being acquired with an unexpired lease term of 13 years with five-yearly, upward-only, RPI-linked rent reviews (subject to a cap and floor).
Ben Green, Director of Atrato Capital, the Investment Advisor to Supermarket Income REIT, said:
“With strong fundamentals, this Sainsbury’s supermarket is an excellent addition to our growing portfolio of omnichannel stores and provides further investment diversification.”
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