The acquired portfolio comprises six freehold supermarkets with an average gross internal area of 32,000 square feet. The stores are let to Waitrose on new 20-year leases with a tenant-only break option in year 15 and are subject to five-yearly, upward-only, CPIH inflation-linked rent reviews; the rent will go up by a minimum of 1% each year and a maximum of 3%.
The stores form a key part of Waitrose's UK online grocery fulfilment network and offer home delivery and/or click and collect, Supermarket Income REIT said.
Waitrose will continue to trade from the stores as normal.
“All of the stores have an impressive trading record and are complementary to our existing portfolio, providing further tenant and geographic diversification,” Ben Green, a director of Atrato Capital, the investment adviser to Supermarket Income REIT said in a statement.
The acquisition price reflects a net initial yield of 4.4%.