Supermarket Income REIT has acquired a Tesco supermarket in Northern Ireland and 10 Sainsbury’s convenience stores in two transactions for £40.9m.
In Craigavon, Northern Ireland, the REIT has acquired a 130,000 sq ft supermarket on a 8.6-acre site for £25.6m, in a deal reflecting a net initial yield of 6.5%.
The company has also completed the acquisition of 10 Sainsbury’s convenience stores for £15.3m, in a deal reflecting a net initial yield of 6.1%. The stores are being acquired from Sainsbury’s with 15-year triple-net leases that benefit from five-yearly, CPI-linked rent reviews.
Following completion of the transactions, the REIT has now redeployed £99.8m of the proceeds of its strategic joint venture with funds managed by Blue Owl Capital.
Rob Abraham, CEO of Supermarket Income REIT, said: “We continue to make good progress with redeploying the proceeds from our joint venture into income accretive opportunities. We have a strong pipeline of large format omni-channel supermarkets, whilst we also see attractive relative value in smaller format convenience stores as demonstrated by our acquisition from Sainsbury’s. Our relationship-led model and sector specialism continues to set us apart in the market, enabling us to unlock these unique opportunities and strategically scale the business.”
