Supermarket Income REIT has acquired a Sainsbury’s supermarket in Huddersfield, West Yorkshire, for £49.7m in a deal reflecting a net initial yield of 7.6%.
The 113,348 sq ft store sits on a 8.5-acre site, which also features a petrol filling station. The store is used as an online fulfilment hub by Sainsbury’s and is being acquired with an unexpired lease term of 11 years with annual RPI-linked rent reviews.
The acquisition has been funded through the drawdown of the company’s existing debt facility.
In a trading update, the REIT said it was “actively exploring” further opportunities to recycle capital opportunistically through individual asset sales and potential joint ventures at attractive valuations.
Ben Green, principal of Atrato Capital, the investment adviser to Supermarket Income REIT, said: “The team has been, and remains, incredibly active across a range of strategic and operational developments, all driven by our focus on delivering value for shareholders. We are pleased that shareholders will have the ability to vote on two proposals – to make further improvements to the cost base and to provide greater flexibility for accretive acquisitions – at the upcoming AGM.
“We are also very pleased to announce this UK acquisition. We remain highly focused on driving returns and we continue to explore all avenues to deliver value for shareholders of Supermarket Income REIT.”
