Supermarket Income REIT has expanded its omnichannel store portfolio wthi the acquisition of Tesco supermarket in Sheffield, Yorkshire, for £73.2 million, representing a net initial yield of 4.5%.
The store was developed for Tesco in 2011 and occupies a 7.0 acre site comprising an 88,000 sq ft net sales area supermarket, a 12-pump petrol filling station and 640 car parking spaces.
The store serves as a hub for omnichannel fulfilment in the region, operating 14 home delivery vans and click & collect functionality, the company said.
The asset is being acquired with an unexpired lease term of 17 years, with annual, upwards only, RPI-linked rent reviews (subject to a 4.0% cap and 0.0% floor).
“This latest acquisition further strengthens Supermarket Income REIT’s portfolio of omnichannel supermarkets, which represent the future model for grocery in the UK. The store has attractive underlying fundamentals and a lease that is both index-linked and accretive to the portfolio in respect of its unexpired lease term,” said Ben Green, Director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT plc.