Supermarket Income REIT has acquired three UK supermarkets for £97.6m at an average net initial yield of 5.5%.
In Aylesbury, it has purchased a 110,000 sq ft Tesco store for £56.3m (NIY 5.2%), in Sale it has acquired a 60,000 sq ft Sainsbury’s for £33.8m (NIY 5.9%) and in Frimley it has picked up a 30,000 sq ft Waitrose store for £7.6m (NIY 6.2%).
The acquisitions have been funded through the drawdown of the company’s existing debt facility.
Rob Abraham, CEO of Supermarket Income REIT, said: “The acquisitions come at the end of a transformational year for SUPR, where we delivered on key strategic objectives, including lease renewals, internalisation, our debut bond issuance and changes to our listing. We established and scaled our strategic joint venture with Blue Owl Capital Managed Funds, enabling us to execute on an attractive pipeline of assets whilst receiving management fee income on stores transferred into the JV.
“We are on track to have recycled approximately £400m of capital this year into an exciting range of acquisitions across the various channels in our earnings accretive pipeline. We continue to see further opportunities ahead and look forward to continuing to grow the business as we cement our position as the leading landlord to grocery tenants.”
