Supermarket Income REIT has acquired a Tesco supermarket in Bracknell from a client of CBRE Global Investors for £39.5 million, reflecting a net initial yield of 5.7%.
Developed in the early 1990’s, Tesco has a long history of trading from this prominent 7.3-acre site which comprises a purpose-built food store and a 400-space surface car park. The store has several purpose-built online distribution docks, supporting Tesco’s online grocery business across the region.
The asset is being acquired with an unexpired lease term of 10 years with annual, upward only, RPI-linked rent reviews (subject to a 4% cap and 0% floor). The acquisition will be financed via a £40 million increase of the £100 million RCF facility provided by HSBC. The increase will be priced at a 1.75% margin over 3-month Libor.
“This omnichannel Tesco supermarket is an excellent addition to our portfolio. The store is situated in a prime location and is an important online grocery fulfilment hub, supporting both home delivery and click and collect,” said Ben Green Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT.