Investment vehicle makes £63m supermarket sweep

Supermarket Income REIT has bought a Tesco Extra and an Aldi supermarket in Beaumont Leys, Leicester from British Land in deal worth £63.4m.

The Tesco store was originally developed in the 1980s and subsequently extended and refurbished in 2007 to a 97,000 sq ft net sales area Tesco Extra. The site has parking for over 700 vehicles and a 12-pump petrol filling station. In addition to the supermarket, the Tesco demise also comprises purpose-built online fulfilment facilities which support Tesco’s online grocery deliveries across the 262,000 population catchment area. It is being acquired with an unexpired lease term of 7 years, with 5-yearly, upwards only, open market rent reviews. The next rent review is in February 2023.

The Aldi supermarket is opening this year and extends to 14,800 sq ft of net sales area. It has been acquired with an unexpired lease term of 25 years.

Ben Green director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: “We are pleased to have acquired a further omnichannel Tesco Extra, with this asset operating as a key online grocery fulfilment hub for Tesco. The Aldi acquisition provides further tenant diversification for the portfolio. Furthermore, we believe this site offers valuable asset management opportunities.”