Sainsbury’s supermarket and petrol station acquired by investor

Real estate investment trust, Supermarket Income REIT, has acquired a Sainsbury’s supermarket in Huddersfield for £49.7m, excluding acquisition costs.

The store comprises a 113,348 sq ft supermarket and a petrol station on an 8.5 acre site. Sainsbury’s has traded from the site for over 30 years.

The premises also operate as an online fulfilment hub for Sainsbury’s with 12 home delivery vans and Click & Collect services.

It has been acquired with an unexpired lease term of 11 years.

The Acquisition has been funded through the drawdown of Supermarket Income REIT’s existing debt facility.

A spokesman for the buyer said: “The acquisition represents attractive value at pricing agreed earlier in the year.

“We are now seeing heightened levels of competition for assets. This provides the board with further confidence in property valuations.

“The acquisition further increases the company’s rental income from investment grade covenants and supports its strategy to pay a progressive dividend.

“The acquisition is a continuation of the company’s strategy to grow earnings through a combination of accretive acquisitions, capital re-cycling and cost savings, thereby supporting growing dividends to shareholders.”

Ben Green, principal of Atrato Capital Ltd, the Investment Adviser to Supermarket Income REIT plc, added: “We are very pleased to announce this UK acquisition. We remain highly focused on driving returns and we continue to explore all avenues to deliver value for our shareholders.”