Supermarket Income REIT: Acquires Tesco Supermarket in Prestatyn
ACQUISITION OF A TESCO SUPERMARKET IN PRESTATYN
Supermarket Income REIT plc (LSE: SUPR), the real estate investment trust providing secure, inflation-protected, long income from grocery property in the UK, announces the acquisition of a Tesco supermarket in Prestatyn, North Wales from Ediston Property Investment Company for £26.5 million (excluding acquisition costs) representing a net initial yield of 5.3%.
Developed in 2013, this 6-acre site is prominently located in the town centre and comprises a 46,000 sq ft net sales area supermarket with 455 car parking spaces and 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.
Ben Green, Director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT, said:
“This omnichannel Tesco has attractive lease terms and strong trading fundamentals. The acquisition is our first in Wales, providing further geographic diversification to our existing portfolio.”