Supermarket Income REIT plc has acquired a Tesco supermarket in Prestatyn, North Wales from Ediston Property Investment Company for £26.5 million, representing a net initial yield of 5.3%.
It is being acquired with an unexpired lease term of 12 years, with 5-yearly, upwards only, RPI-linked rent reviews (subject to a 5.0% cap and a 1.0% floor). The store forms a key part of Tesco’s online grocery fulfilment network in the region.
“This omnichannel Tesco has attractive lease terms and strong trading fundamentals. The acquisition is our first in Wales, providing further geographic diversification to our existing portfolio,” said Ben Green, Director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT.
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Developed in 2013, this 6-acre site is prominently located in the town centre and comprises a 46,000 sq ft net sales area supermarket with 455 car parking spaces and an 8-pump petrol filling station.