Supermarket Income REIT acquires portfolio of Waitrose

6 July 2020 (Last Updated September 7th, 2020 06:38)

Real estate investment trust Supermarket Income REIT (SUPR) has entered into a sale and leaseback transaction with Waitrose & Partners.

Supermarket Income REIT acquires portfolio of Waitrose
SUPR acquires six portfolio of Waitrose via sale and leaseback transaction. Credit: bazzadarambler.

Real estate investment trust Supermarket Income REIT (SUPR) has entered into a sale and leaseback transaction with Waitrose & Partners.

The transaction, excluding the acquisition costs, is valued at £74.1m.

As part of this transaction, SUPR acquires Waitrose’s six freehold supermarkets portfolios including Waitrose Eastbourne, High Street; Waitrose Edenbridge, Mont St Aignan Way; Waitrose Ely, Bray’s Lane; Waitrose Oundle, 66 East Road; Waitrose Sandbach, Flat Lane and Waitrose Sudbury, Station Road.

These locations have an average gross internal area of 32,000ft2.

There will be no changes in the operation from a customer or Waitrose Partner perspective following the acquisition.

Under this agreement, these stores are let to Waitrose on new 20-year leases with a tenant-only break option in year 15 and are subject to five-yearly, upward-only, CPIH-linked rent reviews.

Supermarket Income REIT investment adviser and Atrato Capital director Ben Green said: “We are very pleased with this transaction.

“All of the stores have an impressive trading record and are complementary to our existing portfolio, providing further tenant and geographic diversification.”

The acquired stores are key to Waitrose’s UK online grocery fulfilment network and offer home delivery and/or click and collect.

Last month, Waitrose announced plans to build a third online fulfilment centre in London as part of the company’s plan to boost the availability of delivery slots for customers.

The retailer processed more than 150,000 online orders in a week for the first time in mid- June during the coronavirus pandemic.