Supermarket Income REIT has bought a Sainsbury’s supermarket in Swansea, South Wales, and a Tesco supermarket in Maidstone, Kent, from Argo Real Estate for £73m – a blended net initial yield of 4.6%.
The Sainsbury’s store sits on a seven-acre city centre site and comprises a 65,000 sq ft net sales area, an 18-pump petrol filling station and more than 500 car parking spaces. The store has a purpose-built online fulfilment centre which operates 16 vans, supporting Sainsbury’s online grocery network across the region. It is being acquired with an unexpired lease term of 27 years, with five-yearly, upwards-only, open-market rent reviews.
The Tesco site in Maidstone also extends to seven acres and comprises a 39,000 sq ft supermarket, a 12-pump petrol filling station, 369 car parking spaces and a small parade of adjoining units. It is being acquired with an unexpired lease term of 13 years, with five-yearly, upwards-only, open-market rent reviews.
Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: “These two stores are excellent additions to our growing portfolio of grocery real estate and were funded using the proceeds of our recently oversubscribed equity issue. Both assets have attractive underlying fundamentals and long histories of strong trading performances, providing a combined accretive weighted average unexpired lease term of 21 years.”
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