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Supermarket Income REIT PLC said on Monday it acquired two supermarket sites in the UK for £82.9 million, reflecting a combined net initial yield of 4.9%, as it secures new financing.
The first site in Basingstoke consists of a Tesco superstore, an M&S Food, and an Iceland. The second in Doncaster consists of an Asda supermarket.
The 18.7 acre Basingstoke site has been acquired from Tellon Capital and comprises a 60,938 square feet net sales area Tesco superstore with a 16-pump petrol filling station and 878 parking spaces.
The property also includes an M&S Foodhall, Iceland and other complementary non-food tenants. The Tesco store has a remaining lease term of 12 years and is subject to 5-yearly open market rent reviews.
The Asda store comprises of 45,813 square feet net sales area, sitting on a 5.2 acre site with 340 parking spaces. The property was acquired via a direct sale and leaseback transaction with Asda under a new 100 year lease.
The property is subject to 5-yearly rent reviews which are upwards only and CPI-linked, subject to a 2.5% cap and a 0.0% floor.
Supermarket Income also arranged a new £412.1 million unsecured credit facility. It consists of three tranches: a £250.0 million five-year revolving credit facility, a £100.0 million three-year term loan, and a £62.1 million 18-month term loan.
‘These acquisitions further strengthen and complement SUPR's portfolio. Chineham Park was a rare opportunity to acquire a Tesco, an M&S Foodhall and an Iceland in a single transaction. The Asda acquisition represents the longest duration asset in the portfolio with a very long 100 year lease.’ said the company's investment adviser, Ben Green.
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