Supermarket and household goods store bought for £34m

Supermarket Income REIT, a UK supermarket real estate investor, has acquired a Sainsbury’s store in Hessle from Reassure Limited for £34m.

This sum excludes acquisition costs and reflects a net initial yield of 5.5%.

Originally developed in the early 1980s, Sainsbury’s has a long history of trading from this prominent 13-acre site which was substantially refurbished in 2011.

The supermarket comprises 50,000 sq ft of sales area with a 12-pump petrol filling station and 584 parking spaces. It has been acquired with an unexpired lease term of 14 years.

Included in the purchase price is an adjoining Homebase store comprising 21,000 sq ft of sales area with an unexpired lease term of four years.

Sainsbury’s guarantee the Homebase rent for the duration of the lease. So the combined total net initial yield on the purchase of the Sainsbury’s in Hessle, including the rental income from the Homebase, will be 6.3%.

Ben Green, director of Atrato Capital, the investment advisor to Supermarket Income REIT, said: “This Sainsbury’s superstore is ideally located for both online and offline grocery sales and adds to Supermarket Income REIT’s growing portfolio of omnichannel stores.”