Supermarket Income REIT acquires another Tesco’s omnichannel store
Supermarket Income REIT has purchased another Tesco supermarket in Bracknell from a client of CBRE Global Investors for £39.5m, reflecting a net initial yield of 5.7%. The store is the 19th supermarket store directly owned by the REIT (with a further 26 owned via a JV partnership)
The 7.3-acre site was developed in the early ’90’s and comprises a purpose-built food store and a 400-space car park. With numerous purpose-built online distribution docks, the store forms a key part of Tesco’s online grocery business across the region. The store is being purchased with an unexpired lease term of 10 years with annual, upward only, RPI-linked rent reviews (subject to a 4% cap and 0% floor). The deal is to be financed via a £40m increase of the £100m RCF facility provided by HSBC. The increase will be priced at a 1.75% margin over 3-month Libor.
