Lancashire supermarket changes hands in £54.4m deal
A major property deal has seen a supermarket in Preston exchange hands for £54.4m.
UK supermarket real estate investor Supermarket Income REIT has bought the Sainsbury’s supermarket in Preston.
The acquisition reflects a net initial yield of 5.1%.
Originally developed in 1992, and extensively refurbished in 2010, the supermarket has a long history of trading from the 10 acre site next to Preston town centre.
The supermarket has a 78,000 sq ft net sales area with a 12-pump petrol filling station, 520 parking spaces and purpose built online fulfilment distribution docks supporting Sainsbury’s online grocery business across the region.
The supermarket is being acquired with an unexpired lease term of 22.5 years with annual, upward-only, RPI-linked rent reviews.
The company has also arranged a new five-year, interest-only, term loan facility with Dekabank.
The £47.6m loan has fixed rate equal to a 1.35% margin over 3 month LIBOR which is currently equivalent to a total cost of 2%.
It is secured against the Sainsbury’s supermarket in Preston and the Tesco supermarket in Mansfield acquired in April 2019.
The facility also includes a £40m uncommitted accordion option for the term of the facility.
Ben Green, Director of Atrato Capital, the Investment Advisor to Supermarket Income REIT, said: “This Sainsbury’s supermarket is a great addition to our growing portfolio of omnichannel stores.
“The property has very attractive lease terms, strong fundamentals and provides further diversification to the portfolio.
“We are delighted to have secured Dekabank as a new lender to the group. Our new facility provides us with very competitively-priced, five-year funding with room to grow to support the company’s future investment requirements.”
