Acquisition of a Tesco Supermarket in Prestatyn

SUPERMARKET INCOME REIT PLC

(the "Company")

LEI: 2138007FOINJKAM7L537

acquisition of a Tesco supermarket in Prestatyn

Supermarket Income REIT plc (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 supermarket in Prestatyn, North Wales from Ediston Property Investment Company for £26.5 million (excluding acquisition costs) representing a net initial yield of 5.3%.

Developed in 2013, this 6-acre site is prominently located in the town centre and comprises a 46,000 sq ft net sales area supermarket with 455 car parking spaces and an 8-pump petrol filling station. It is being acquired with an unexpired lease term of 12 years, with 5-yearly, upwards only, RPI-linked rent reviews (subject to a 5.0% cap and a 1.0% floor). The store forms a key part of Tesco's online grocery fulfilment network in the region. 

Ben Green, Director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT, said:

"This omnichannel Tesco has attractive lease terms and strong trading fundamentals. The acquisition is our first in Wales, providing further geographic diversification to our existing portfolio."  

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 54 supermarkets are let to leading UK supermarket operators, diversified by both tenant and geography.⁽¹⁾

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.⁽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 Limited is the Company's Investment Adviser.

Further information is available on the Company's website www.supermarketincomereit.com

(1)   28 directly owned supermarkets, plus 26 via joint venture

(2)   There is no certainty that these illustrative projections will be achieved