Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) has acquired a Sainsbury's supermarket in Huddersfield, West Yorkshire, for £49.7 million with a net initial yield of 7.6%.
The site, which includes a 113,348-square-foot omnichannel supermarket, a petrol filling station and an online fulfilment hub, has 11 years remaining on its lease, with annual RPI-linked rent reviews capped at 4%.
Supermarket REIT funded the acquisition through an existing debt facility, bringing the group-wide loan-to-value ratio to 39% and extending the weighted average unexpired lease term to 12 years.
The acquisition aligns with Supermarket REIT’s strategy to enhance earnings through accretive acquisitions, capital recycling, and cost-saving measures.
Supermarket REIT also plans to amend its investment objective to allow greater flexibility for acquisitions in Europe following its initial French investment earlier this year.
Ben Green, principal of Supermarket REIT’s investment advisor Atrato Capita, said: “The team has been, and remains, incredibly active across a range of strategic and operational developments, all driven by our focus on delivering value for shareholders.
“We are pleased that shareholders will have the ability to vote on two proposals – to make further improvements to the cost base and to provide greater flexibility for accretive acquisitions – at the upcoming AGM.
“We are also very pleased to announce this UK acquisition. We remain highly focused on driving returns and we continue to explore all avenues to deliver value for shareholders of Supermarket Income REIT.”