Supermarket Income REIT has purchased a Tesco supermarket in Worcester from British Steel Pension Fund for £38.3m, reflecting a net initial yield of 6.0%.
The 6.5 acre site comprises a 47,297 sq ft supermarket, a petrol filling station and 515 car parking spaces.
Tesco has been operating at the site for more than 30 years and the retailer has an unexpired lease term of 12 years, with annual upwards only RPI-linked rent reviews, subject to a 4.0% cap and 0.0% floor.
Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: “This acquisition further strengthens SUPR’s portfolio of top trading omnichannel supermarkets, evidencing our ability to redeploy the proceeds of the SRP sale at yields which are accretive to the portfolio.”
