Supermarket snapped up for £53m
Real estate specialist Supermarket Income REIT has acquired a Tesco Extra supermarket in Scunthorpe from Legal and General Pensions Limited for £53m.
The acquisition of the 98,000 sq ft store reflects a net initial yield of 5.1% and was funded from the proceeds of a £65m equity placing on 25 May.
Developed in 2002, the store is on an 8-acre site with more than 580 parking spaces, an 8-pump filling station and dedicated online fulfilment distribution docks.
Supermarket Income REIT said: “The store has a strong trading record on site and is situated adjacent to the Lincolnshire Lakes development, which consists of more than 6,000 new homes.
“It is being acquired with an unexpired lease term of 22 years with annual, upward-only, RPI-linked rent reviews (subject to cap and floor) on fully repairing and insuring terms.”
Ben Green, Director of Atrato Capital, the investment adviser to Supermarket Income REIT, added: “We are delighted to continue our track record of rapidly deploying our capital in high-quality, omni-channel supermarkets. This store has an impressive trading record on site and plays an important role in Tesco’s online fulfilment network.
“This investment is a strong addition to our growing portfolio, increasing both the weighted average unexpired lease term and net initial yield of the Company’s portfolio.”
