Supermarket site sold in £45m deal

Supermarket Income REIT, the UK supermarket real estate investor, has bought a Tesco Extra supermarket in Mansfield, Nottinghamshire, from the Charities Property Fund (CPF) in a £45m deal.

Developed in 2007, the nine-acre site includes 90,000 sq ft Tesco Extra, approximately 530 parking spaces and a 12-pump petrol filling station.

The consideration for the acquisition includes £33.7m in cash, funded from the proceeds of the £45m equity placing on 22 March.

Ben Green, director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said: “This acquisition increases both the average unexpired lease term and the net initial yield of our portfolio.

“We are especially pleased to have been able to use Supermarket Income REIT shares as part consideration in a property acquisition for the first time. We believe there are many investors who own individual supermarket properties that would benefit from swapping their ownership into shares in Supermarket Income REIT, gaining our diversification and specialist management.”