Supermarket Income REIT (LON:SUPR), the grocery property specialist, has acquired a Morrisons supermarket in Telford, Shropshire for £14.3mln and has boosted its loan facilities by almost £35mln.
The four-acre Morrisons site was developed in 2012 and is in the centre of Lawley Village, a new 3,550-home development.
There is a net initial yield of 5.0% on the site, Supermarket Income REIT added.
The investment trust focuses on properties with internet shopping/online fulfilment capability and the site has a click-and-collect facility as well as 220 car parking spaces.
The unexpired lease of 17 years is subject to five-yearly, upward-only, RPI-linked rent reviews with a break option in year twelve.
Supermarket Income said it has also increased its debt facility with Bayerische Landesbank (BLB) by £34.8mln, comprising a new £27.5mln, secured, five-year tranche and a further £7.3mln tranche at a total cost of debt of 2%.
In a statement, Ben Green, a director of Atrato Capital, the trust’s investment adviser, said: "This transaction represents an opportunity to acquire a modern Morrisons supermarket that is ideally located to benefit from the growing catchment at the centre of a significant 3,550-home development.
"We are also pleased to extend our relationship with BLB, a key funding partner for us as we grow."