ACQUISITION OF TWO SUPERMARKETS FOR £64.8 MILLION
SUPERMARKET INCOME REIT PLC
(the "Company")
LEI: 2138007FOINJKAM7L537
acquisition of a Sainsbury's IN melksham and a waitrose in winchester
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 exchange of contracts for the acquisition of a Sainsbury's supermarket in Melksham, Wiltshire, and a Waitrose supermarket in Winchester, Hampshire, from LaSalle Investment Management for £64.8 million, representing a combined net initial yield of 4.4%.
The Sainsbury's store was developed in the 1990's and subsequently extended and refurbished in 2011. The 9-acre site comprises a 47,000 sq ft net sales area supermarket, an 8-pump petrol filling station, 290 parking spaces and purpose-built online fulfilment distribution docks, which support Sainsbury's online grocery deliveries across the region. It is being acquired with an unexpired lease term of 17 years, with annual, upwards only, RPI-linked rent reviews (subject to a 4.0% cap and a 1.0% floor).
The Waitrose site was developed in 2009 and comprises a 25,500 sq ft net sales area omnichannel supermarket with 180 parking spaces. In addition, 4 residential apartments, a GP medical centre and 4 ancillary units are also included in the purchase. The Waitrose store has been acquired with an unexpired lease term of 24 years, with 5-yearly, upward only, RPI-linked rent reviews (subject to a 3.3% cap and a 1.0% floor).
The acquisitions are expected to complete in the coming weeks upon the completion of property related due diligence.
Ben Green, Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said:
"These two supermarkets are excellent additions to our portfolio. The lease lengths at 17 years and 24 years respectively are accretive to our portfolio WAULT of 16 years, whilst adding another Waitrose store brings further tenant diversification to the portfolio."
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FOR FURTHER INFORMATION |
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Atrato Capital Limited |
+44 (0)20 3790 8087 |
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Ben Green / Steve Windsor / Steve Noble
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Stifel Nicolaus Europe Limited |
+44 (0)20 7710 7600 |
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Mark Young / Matt Blawat |
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FTI Consulting |
+44 (0)20 3727 1000 |
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Dido Laurimore / Eve Kirmatzis / Andrew Davis |
SupermarketIncomeREIT@fticonsulting.com |
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 51 supermarkets(1) are let to leading UK supermarket operators, diversified by both tenant and geography.
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 over the medium term(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) 25 directly owned supermarkets, plus 26 via joint venture
(2) There is no certainty that these illustrative projections will be achieved
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