Supermarket Income REIT PLC (LSE:SUPR) has acquired a Sainsbury's supermarket in Swansea, South Wales, and a Tesco occupied site in Maidstone, Kent, for a combined £73mln.
"Both assets have attractive underlying fundamentals and long histories of strong trading performances, providing a combined accretive weighted average unexpired lease term of 21 years," said Ben Green, a director of Atrato Capital, Supermarket Income REIT’s investment adviser.
The Sainsbury's store, which opened in 1989 and was refurbished in 2016, contains a purpose-built online fulfilment centre that operates 16 vans, supporting the online grocery network across the region.
It is being acquired with an unexpired lease term of 27 years, with five-yearly, upwards only, open market rent reviews.
The Tesco site in Maidstone, Kent, was extensively refurbished in 2007 and like the Sainbury’s site also contains a petrol station.
It is being acquired with an unexpired lease term of 13 years, with five-yearly, upwards only, open market rent reviews.
: "These two stores are excellent additions to our growing portfolio of grocery real estate and were funded using the proceeds of our recently oversubscribed equity issue," Green added.
The vendor is Argo Real Estate with the sites acquired on a combined net initial yield of 4.6%.