Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) said it has acquired a Tesco omnichannel supermarket in Worcester for a total purchase price of £38.3mln (excluding acquisition costs), reflecting a net initial yield of 6.0%.
The site has been operating at the 6.5-acre site for over 30 years and comprises a 47,297 square foot net sales area supermarket, a petrol filling station and 515 car parking spaces.
It is also an online hub for Tesco, operating nine home delivery vans and a Click & Collect facility. The store is being acquired from British Steel Pension Fund, with an unexpired lease term of 12 years, with annual upwards only RPI-linked rent reviews (subject to a 4.0% cap and 0.0% floor).
Supermarket REIT said it will fund the acquisition from the first tranche of sales proceeds of the Supermarket’'s stake in the Sainsbury's Reversion Portfolio (SPR).
In a statement, Ben Green, Director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: "This acquisition further strengthens Supermarket's portfolio of top trading omnichannel supermarkets, evidencing our ability to redeploy the proceeds of the SRP sale at yields which are accretive to the portfolio.