Supermarket Income REIT has bought a Sainsbury’s in Hessle, Yorkshire, for £34m – a 5.5% yield.
The 50,000 sq ft property, bought from Reassure, sits on a 13-acre site and also features a 12-pump filling station and 584 parking spaces. The store has purpose-built online fulfilment docks and is being acquired with an unexpired lease term of 14 years with annual, upward-only, RPI-linked rent reviews (subject to a cap and floor).
Included in the purchase price is an adjoining 21,000 sq ft Homebase with an unexpired lease term of four years. Sainsbury’s guarantees the Homebase rent for the duration of the lease. Combined total net initial yield on the purchase, including the rental income from the Homebase, is 6.3%.
Ben Green, director of Atrato Capital, which is investment adviser to Supermarket Income REIT, said the store was ideally located for both online and offline grocery sales and added to Supermarket Income REIT’s growing portfolio of omnichannel stores.
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