Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) said it is acquiring a retail park that is host to a Tesco store and Iceland Food Warehouse near Bristol for £84mln.
The site, which also includes Boots, Greggs, Costa Coffee and Pets at Home, will generate a net initial yield of 5.6% based on the purchase price.
The Tesco store has an unexpired lease term of 14 years, with annual, upwards-only, RPI-linked rent reviews (with a 3.5% cap), investors were told.
"We are very pleased to be adding this top trading omnichannel Tesco store to the portfolio together with the complementary essential retailers at this site,” said Ben Green, director of Atrato Capital, the Investment Adviser to Supermarket Income REIT.