Investor goes on £95m North West supermarket shopping spree

Tesco, Prescot
X The Business Desk

Register for free to receive latest news stories direct to your inbox

Register

Real estate investor Supermarket Income REIT has bought five sites across the North West for a total of £94.7m.

The acquisitions support the stock market-listed investment trust’s strategy “to deliver attractive long term income”.

It bought two Aldis, a Tesco, Morrisons, and an M&S Foodhall site in four separate deals across the North West.

Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: “These acquisitions provide geographic and tenant diversification, with the purchase of our first M&S Foodhall, as well as exposure to a number of high quality omnichannel supermarket assets.”

The acquisitions, along with a sixth site of the Morrisons in Murton, Durham, have a weighted average unexpired lease term (WAULT) of 15 years and reflect a combined net initial yield of 4.6%.

The largest individual deal was £50m for the 89,000 sq ft supermarket in Prescot, Merseyside, where Tesco has operated from since 1993.

Supermarket REIT paid Land Securities £28.9m for the Morrisons in Workington, Cumbria, £10.2m to London Metric Property for the Aldi and M&S Foodhall in West Derby, Liverpool, and £5.6m to OPP Investments for the Aldi in Oldham.

Close