1. News
January 5, 2022

Supermarket Income REIT purchases two supermarkets in the UK

The company also provided an update to its debt financing facility.

UK-based Supermarket Income REIT has acquired two supermarkets in the UK for a total purchase value of $74.5m (£55.1m).

The two stores are Sainsbury’s in Washington, Tyne and Wear, and Asda in Cwmbran, South Wales.

The Washington supermarket comprises of 83,800ft2 net sales area omnichannel supermarket, a 24-pump petrol filling station and purpose-built online fulfilment docks.

In addition, the deal includes two standalone quick service restaurant units operated by KFC and Tim Hortons that are located on the same site.

Supermarket Income REIT acquired the property with an unexpired lease term of 34 years, with seven-yearly, upwards only, RPI-linked rent reviews.

The Asda store in Cwmbran includes an 81,600ft2 net sales area omnichannel supermarket and will be key to Asda’s online fulfilment operations across the region.

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The property, which represents SUPR’s first Asda acquisition, has been purchased with an unexpired lease term of ten years, with five-yearly, upwards only, open market rent reviews.

Supermarket Income REIT investment advisor Atrato Capital Limited director Ben Green said: “These acquisitions are strong additions to Supermarket Income REIT’s growing portfolio of omnichannel stores and in combination are accretive to both the weighted average unexpired lease term and net initial yield of the company’s portfolio.

“In addition, the Asda acquisition provides further tenant diversification for the portfolio.”

Last month, Supermarket Income REIT acquired a Tesco supermarket in Sheffield for $99.1m (£73.2m).

The property has an unexpired lease term of 17 years, with annual, upwards only, RPI-linked rent reviews, subject to a 4.0% cap.