StockMarketWire.com - Supermarket Income REIT has acquired a Tesco Extra supermarket in Scunthorpe, England, from Legal and General Pensions Limited for £53 million (net of acquisition costs), reflecting a net initial yield of 5.1%.

Developed in 2002, the store totals 98,000 sq ft on an eight-acre site with more than 580 parking spaces, an eight-pump filling station and dedicated online fulfilment distribution docks.

It is being acquired with an unexpired lease term of 22 years with annual, upward-only, RPI-linked rent reviews (subject to cap and floor) on fully repairing and insuring terms. The purchase has been funded from the proceeds of the £65 million equity placing on 25 May 2018.

Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: "We are delighted to continue our track record of rapidly deploying our capital in high-quality, omni-channel supermarkets. This store has an impressive trading record on site and plays an important role in Tesco's 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."




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