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Supermarket Inc REIT (SUPR)

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Wednesday 19 February, 2020

Supermarket Inc REIT

Acquisition

RNS Number : 3982D
Supermarket Income REIT PLC
19 February 2020
 

 Supermarket Income REIT

(the "Company")

 

ACQUISITION OF A SAINSBURY'S SUPERMARKET IN Hessle, EAST RIDING

 

Supermarket Income REIT (LSE: SUPR), the UK supermarket real estate investor, announces the acquisition of a Sainsbury's store in Hessle from Reassure Limited for £34.0 million (excluding acquisition costs), reflecting a net initial yield of 5.5%.

Originally developed in the early 1980s, Sainsbury's has a long history of trading from this prominent 13-acre site which was substantially refurbished in 2011.

The supermarket comprises 50,000 square feet net sales area with a 12-pump petrol filling station and 584 parking spaces.  The store has purpose-built online fulfilment docks and supports Sainsbury's online grocery fulfilment for the surrounding area.  It 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 Homebase store comprising 21,000 square feet net sales area with an unexpired lease term of four years. Sainsbury's guarantee the Homebase rent for the duration of the lease. Consequently, the combined total net initial yield on this purchase of the Sainsbury's in Hessle, including the rental income from the Homebase, will be 6.3%.

Ben Green, Director of Atrato Capital, the Investment Advisor to Supermarket Income REIT, said:

"This Sainsbury's superstore is ideally located for both online and offline grocery sales and adds to Supermarket Income REIT's growing portfolio of omnichannel stores."

For further information, please contact:

 

Atrato Capital Limited

Ben Green

Steve Windsor

Steve Noble

 

+44 (0)20 3790 8087

Stifel Nicolaus Europe Limited

Mark Young

Matt Blawat

Rajpal Padam

 

+44 (0)20 7710 7600

Tavistock

Jeremy Carey

James Whitmore

+44 (0)20 7920 3150

 

NOTES TO EDITORS:

Supermarket Income REIT plc (LSE: SUPR) is a real estate investment trust dedicated to investing in supermarket properties that form a key part of the future omnichannel model of grocery and let to leading UK supermarket operators.

The Company provides investors with attractive, long-dated, secure, inflation-linked, growing income with the potential for capital appreciation over the longer term and targeting a 7% to 10% p.a total shareholder return over the medium term. The Company has increased its dividend target for the year ending 30 September 2020 in line with UK RPI inflation to 5.80 pence per share, payable in quarterly instalments.

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 is the Company's Investment Adviser. Further information is available on the Company's website www.supermarketincomereit.com

 

LEI: 2138007FOINJKAM7L537


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