Supermarket Income REIT acquires Tesco’s store for £66.8m
ACQUISITION OF A TESCO IN LLANELLI FOR £66.8 MILLION
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 Llanelli, South Wales, for a total purchase price of £66.8 million (excluding acquisition costs), reflecting a net initial yield of 5.3%.
The store was developed for Tesco in 1989 and occupies a 10 acre site comprising a 82,046 sq ft net sales area supermarket, a 16-pump petrol filling station and 753 car parking spaces. The store is an online hub for Tesco, with 10 home delivery vans and a dedicated Click & Collect facility in the car park. The store is being acquired from M&G with an unexpired lease term of 12 years, with annual, upwards only RPI-linked rent reviews (subject to a 5.0% cap and 0.0% floor).
Ben Green, Director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT plc, said:
“This acquisition further strengthens SUPR’s portfolio of top trading omnichannel supermarkets. The store has strong trading fundamentals, comes at an accretive acquisition yield and is subject to annual index-linked rent reviews.”
Below is a video, shot with the investment team of Atrato Group, the advisors behind SUPR, highlighting the Group’s investment strategy
