Acquisition of Sainsbury's store and new loan
Supermarket Income REIT
ACQUISITION OF A SAINSBURY'S SUPERMARKET AND NEW LOAN FACILITY
Supermarket Income REIT (LSE: SUPR), the UK supermarket real estate investor, announces the acquisition of the Sainsbury's supermarket in Preston, Lancashire from Legal & General for £54.4 million (excluding acquisition costs), reflecting a net initial yield of 5.1%.
Originally developed in 1992, and extensively refurbished in 2010, Sainsbury's has a long history of trading from this prominent 10 acre site adjacent to Preston town centre. The supermarket comprises 78,000 sq ft net sales area with a 12-pump petrol filling station, 520 parking spaces and purpose built online fulfilment distribution docks supporting Sainsbury's online grocery business across the region.
It is being acquired with an unexpired lease term of 22.5 years with annual, upward-only, RPI-linked rent reviews (subject to a 4% cap and 1% floor).
The Company has also arranged a new five-year, interest-only, term loan facility with Dekabank. This £47.6 million facility is attractively priced with a fixed rate equal to a 1.35% margin over 3 month LIBOR which is currently equivalent to a total cost of 2.0%. It is secured against the Sainsbury's supermarket in Preston and the Tesco supermarket in Mansfield acquired in April 2019. The facility also includes a £40 million uncommitted accordion option for the term of the facility.
Ben Green, Director of Atrato Capital, the Investment Advisor to Supermarket Income REIT, said:
"This Sainsbury's supermarket is a great addition to our growing portfolio of omnichannel stores. The property has very attractive lease terms, strong fundamentals and provides further diversification to the portfolio.
"We are delighted to have secured Dekabank as a new lender to the Group. Our new facility provides us with very competitively-priced, five-year funding with room to grow to support the Company's future investment requirements".
For further information, please contact:
Atrato Capital Limited +44 (0)20 3790 8087
Stifel Nicolaus Europe Limited +44 (0)20 7710 7600
Tavistock +44 (0)20 7920 3150
NOTES TO EDITORS:
Supermarket Income REIT plc is listed on the London Stock Exchange. SUPR acquires UK supermarket sites that form a key part of the future model of grocery in the United Kingdom. SUPR aims to provide long-term RPI-linked income, from institutional grade tenants and the potential for capital growth through active asset management. Atrato Capital is the Company's Investment Adviser.
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