Six northern supermarkets bought by REIT for £113m

Supermarket Income REIT plc announced the acquisition of six supermarkets for £113.1 million, reflecting a combined net initial yield of 4.6%.

The real estate investment trust acquired the supermarkets from different vendors.

The REIT has bought a Tesco in Prescot, two Morrisons in Durham and Cumbria, an Aldi in Oldham and an Aldi and M&S Foodhall site in Liverpool.

The Tesco in Prescot, Merseyside, is being acquired from an undisclosed vendor for £50 million. It is being acquired with an unexpired lease term of 15 years, with annual, upwards only, CPI-linked rent reviews.

The Morrisons in Murton, Durham was acquired from Janus Henderson UK Property PAIF for £18.4 million. It is being acquired with an unexpired lease term of 20 years, with 5-yearly, upwards only, RPIX-linked rent reviews.

The Morrisons in Workington, Cumbria was acquired from Land Securities Group plc for £28.9 million. It has an unexpired lease term of 17 years, with 5-yearly, upwards only, CPIH-linked rent reviews.

The Aldi in Oldham, Greater Manchester was acquired from O.P.P Investments Ltd for £5.6 million. It is being acquired with an unexpired lease term of 10 years, with 5-yearly, 2.0% fixed, annually compounded uplifts.

The Aldi and M&S Foodhall in West Derby, Liverpool were acquired from London Metric Property plc for £10.2 million. The Aldi supermarket has an unexpired lease term of 15 years, with 5-yearly, 2.5% fixed, annually compounded uplifts. The M&S Foodhall has an unexpired lease term of 10 years, with 5-yearly, open market rent reviews. 

Ben Green, director of Atrato Capital Limited, the investment adviser to Supermarket Income REIT plc, said:  “These acquisitions provide geographic and tenant diversification, with the purchase of our first M&S Foodhall, as well as exposure to a number of high quality omnichannel supermarket assets.

“With an aggregate WAULT (weighted average unexpired lease term) of 15 years, they support our strategy to deliver attractive long term income.”

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