£65m deal sees London real estate investor check out with two new supermarkets

A London real estate investor has announced that it has acquired two new supermarket sites in a combined investment worth £64.8m.

Supermarket Income REIT, which specialises in grocery property in the UK, has exchanged contracts for the acquisition of a Sainsbury’s supermarket in Melksham, Wiltshire, and a Waitrose supermarket in Winchester, Hampshire.

The properties have been purchased from LaSalle Investment Management for £64.8m, representing a combined net initial yield of 4.4 per cent.

The Sainsbury’s store comprises a 47,000 sq ft sales area supermarket, an 8-pump petrol filling station, 290 parking spaces and purpose-built online fulfilment distribution docks.

The Waitrose site is made up of a 25,500 sq ft sales area supermarket, 4 residential apartments, a GP medical centre and 4 ancillary units.

The acquisitions are expected to complete in the coming weeks.

Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, commented: “These two supermarkets are excellent additions to our portfolio.

“The lease lengths at 17 years and 24 years respectively are accretive to our portfolio WAULT of 16 years, whilst adding another Waitrose store brings further tenant diversification to the portfolio.”