Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) has announced the acquisition of a number of retail sites, alongside a newly arranged £412.1mln credit facility.
In Chineham, Basingstoke, the investment company has bought a Tesco superstore along with a M&S Foodhall and an Iceland. Meanwhile, in Doncaster, it has acquired an ASDA supermarket.
The deals have a combined purchase price of £82.9mln and, according to the company, will have a combined net initial yield of 4.9%.
The site in Chineham spans some 18.7 acres and alongside the retail space is a 16-pump petrol station and 878 car parking spaces. The Tesco superstore has a further 12 years on its lease and is subject to five-yearly open-market rent reviews.
In Doncaster, the ASDA site spans 5.2 acres. An ASDA supermarket has operated at the site since the 1970s and the store was refurbished in 2019. It has been acquired through a sale-and-leaseback arrangement, starting a new 100-year lease, subject to five-yearly rent review.
Supermarket REIT, meanwhile, has arranged a £412.1mln borrowing facility – comprising a £250mln five-year revolving credit facility, a £100mln three-year loan and £62.1mln 18-month loan.
It is being used to refinance £255mln of prior borrowings, as well as to fund the company’s continuing growth.
"These acquisitions further strengthen and complement SUPR's portfolio,” said Ben Green director of Atrato Capital, investment adviser to Supermarket Income REIT.
“Chineham Park was a rare opportunity to acquire a Tesco, an M&S Foodhall and an Iceland in a single transaction. The Asda acquisition represents the longest duration asset in the portfolio with a very long 100 year lease.
“The new unsecured facility is a significant milestone for SUPR, the scale and quality of the portfolio now enabling the company to finance on an unsecured basis.
“We are delighted with the level of financing support received from our existing and new relationship banks, affirming the robust nature of the grocery sector."