Supermarket Income REIT has acquired a Tesco supermarket in Llanelli, South Wales, from M&G for £66.8m, reflecting a net initial yield of 5.3%.
The store, which was developed for Tesco in 1989, occupies a 10-acre site comprising a 82,046 sq ft net sales area supermarket, a 16-pump petrol filling station and 753 car parking spaces.
The store has an unexpired lease term of 12 years, with annual, upwards only RPI-linked rent reviews, subject to a 5.0% cap and 0.0% floor.
Ben Green, director of Atrato Capital, investment adviser to Supermarket Income REIT, said: “This acquisition further strengthens SUPR’s portfolio of top trading omnichannel supermarkets. The store has strong trading fundamentals, comes at an accretive acquisition yield and is subject to annual index-linked rent reviews.”
