Supermarket Income REIT PLC Acquisition of a Tesco Extra & an Aldi Supermarket (3499F)
16 November 2020 - 6:00PM
UK Regulatory
TIDMSUPR
RNS Number : 3499F
Supermarket Income REIT PLC
16 November 2020
SUPERMARKET INCOME REIT
(the "Company")
LEI: 2138007FOINJKAM7L537
acquisition of a tesco EXTRA and an aldi supermarket in Beaumont
Leys, LEICESTER
Supermarket Income REIT (LSE: SUPR), the real estate investment
trust providing secure, inflation-protected, long income from
grocery property in the UK, announces the acquisition of a Tesco
Extra, and an Aldi supermarket in Beaumont Leys, Leicester from
British Land PLC.
The Tesco store was originally developed in the 1980's and
subsequently extended and refurbished in 2007 to a 97,000 sq ft net
sales area Tesco Extra. The site has parking provision for over 700
vehicles and a 12-pump petrol filling station. In addition to the
supermarket, the Tesco demise also comprises purpose-built online
fulfilment facilities which support Tesco's online grocery
deliveries across the 262,000 population catchment area. It is
being acquired with an unexpired lease term of 7 years, with
5-yearly, upwards only, open market rent reviews. The next rent
review is in February 2023.
The Aldi supermarket is opening this year and extends to 14,800
sq ft of net sales area. It has been acquired with an unexpired
lease term of 25 years (with break options at years 15 and 20) with
5-yearly, upwards only, RPI-linked rent reviews (subject to a 2.5%
cap and 1.0% floor).
Adjoining the Tesco Extra and the Aldi supermarket is a parade
of units comprising 33,000 sq ft net sales area, predominantly
occupied by Costa, Greggs, WH Smiths and Pets at Home. The total
consideration is GBP63.4 million (excluding acquisition costs)
reflecting a combined net initial yield of 6.4%.
The site is adjacent to Fletcher Shopping Mall which will be
retained as a separate interest by the vendor.
Ben Green Director of Atrato Capital, the Investment Adviser to
Supermarket Income REIT, said:
"We are pleased to have acquired a further omnichannel Tesco
Extra, with this asset operating as a key online grocery fulfilment
hub for Tesco. The Aldi acquisition provides further tenant
diversification for the portfolio. Furthermore, we believe this
site offers valuable asset management opportunities."
FOR FURTHER INFORMATION
Atrato Capital Limited +44 (0)20 3790 8087
Ben Green / Steve Windsor / ir@atratocapital.com
Steve Noble
Stifel Nicolaus Europe Limited +44 (0)20 7710 7600
Mark Young / Matt Blawat
FTI Consulting +44 (0)20 3727 1000
Dido Laurimore /Eve Kirmatzis SupermarketIncomeREIT@fticonsulting.com
/ Andrew Davis
NOTES TO EDITORS:
Supermarket Income REIT plc (LSE: SUPR) is a real estate
investment trust dedicated to investing in grocery properties which
are an essential part of the UK's feed the nation infrastructure.
The Company focuses on grocery stores which are omnichannel,
fulfilling online and in-person sales. All of the Company's 48
properties(1) are let to leading UK supermarket operators,
diversified by both tenant and geography.
The Company provides investors with attractive, long-dated,
secure, inflation-linked, growing income with the potential for
capital appreciation over the longer term and targets a 7% to 10%
p.a. total shareholder return over the medium term(2) . The Company
has increased its dividend target in line with UK RPI inflation
each year.
The Company's ordinary shares were admitted to trading on the
Main Market of the London Stock Exchange, Specialist Fund Segment,
on 21 July 2017.
Atrato Capital is the Company's Investment Adviser.
Further information is available on the Company's website
www.supermarketincomereit.com
(1) 22 direct properties, plus 26 via joint venture
(2) There is no certainty that these illustrative projections will be achieved
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