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Real Estate

Supermarket Income REIT buys South Wales Tesco store for £66.8mln

The store occupies a 10-acre site with an 82,046 sq ft net sales area, a 16-pump petrol filling station and 753 car parking spaces

Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) acquired a Tesco supermarket in Llanelli, South Wales, for £66.8mln, reflecting a net initial yield of 5.3%.

The store was developed in 1989 and occupies a 10-acre site with an 82,046 sq ft net sales area supermarket, a 16-pump petrol filling station and 753 car parking spaces.

It is an online hub for Tesco, with 10 home delivery vans and a dedicated Click & Collect facility in the car park.

The real investment trust that provides inflation-protected and long income from UK property is acquiring it from M&G with an unexpired lease term of 12 years.

Ben Green, director of Atrato Capital Ltd, the investment adviser to Supermarket, commented: "This acquisition further strengthens SUPR's portfolio of top trading omnichannel supermarkets.

“The store has strong trading fundamentals, comes at an accretive acquisition yield and is subject to annual index-linked rent reviews."

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