Supermarket snapped up in £51.7m deal

A Morrisons supermarket at Hillsborough Barracks in Sheffield has been acquired by a real estate investment firm for £51.7m.

Supermarket Income REIT, the UK supermarket real estate investor, has acquired the 113,000 sq ft Morrisons from  Opus North, reflecting a net initial yield of 4.9%.

The supermarket is located on an 8.4-acre site at the historic and prominent Hillsborough Barracks. It comprises a 113,000 sq ft Morrisons’ supermarket, approximately 860 parking spaces and a 12-pump petrol filling station.

It is being acquired with an unexpired lease term of 21 years with five-yearly, upward-only, RPI-linked rent reviews compounded annually.  The next rent review is scheduled for October 2019.

The company has also arranged a new five-year, interest-only loan facility with Bayerische Landesbank. The £52.1m facility  is secured against the new Morrisons’ supermarket in Sheffield and the Sainsbury’s supermarket in Ashford.

The company now owns and manages six of these “omnichannel” supermarkets, which are let to three of the largest UK supermarket operators, Tesco, Sainsbury’s and Morrisons.

Ben Green, director of Atrato Capital, the Investment Advisor to Supermarket Income REIT, said: “This Morrisons’ supermarket is an excellent addition to our growing portfolio. The property benefits from strong fundamentals, attractive lease terms and provides further tenant diversification. This purchase completes our asset acquisition plan, which we set out at the time of our £65 million capital raise in May.”

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