Supermarket Income REIT
(the "Company")
ACQUISITION OF TESCO EXTRA IN SCOTLAND FOR £50 MILLION
Supermarket Income REIT (LSE: SUPR), the UK supermarket real estate investor, announces that it has acquired a Tesco Extra supermarket in the North Lanarkshire town of Cumbernauld, Scotland, from Legal and General for £50 million (net of acquisition costs), reflecting a net initial yield of 5.5% after the next agreed RPI-linked rent review in March 2018.
The 9.5-acre site occupies a town centre location and is equidistant from Glasgow and Sterling. It comprises the 117,000 square feet Tesco Extra store, approximately 570 parking spaces and a 12-pump filling station. The store is strategically located for online fulfilment given the excellent motorway and road connections.
It is being acquired with an unexpired lease term of 23 years with annual, upward-only, RPI-linked rent reviews (subject to cap and floor) on full repairing and insuring terms. The purchase has been funded out of the £20 million equity placing issued on the 17 November and from the Company's Revolving Credit Facility.
Ben Green, Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said: "This store has an impressive trading record on site and plays an important role in Tesco's Scottish 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".
For further information, please contact:
Atrato Capital Limited +44 (0)20 3790 8087
Ben Green
Steve Windsor
Steve Noble
Stifel Nicolaus Europe Limited +44 (0)20 7710 7600
Mark Young
Neil Winward
Tom Yeadon
Tavistock +44 (0)20 7920 3150
Jeremy Carey
James Whitmore
James Verstringhe
NOTES TO EDITORS:
Supermarket Income REIT plc listed on the London Stock Exchange in July 2017. SUPR acquires UK supermarket sites that form a key part of the future model of grocery in the United Kingdom. SUPR aims to provide long-term RPI-linked income, from institutional grade tenants and the potential for capital growth through active asset management. Atrato Capital is the Company's Investment Adviser.
