South Yorkshire supermarket sells to real estate trust for £73m

Real estate investment trust Supermarket Income REIT PLC has announced the acquisition of a Tesco supermarket in Sheffield, South Yorkshire, for a purchase price of £73.2m.

Supermarket Income REIT focuses on grocery stores which are omnichannel, fulfilling online and in-person sales. All of the Company’s 65 supermarkets are let to leading UK supermarket operators, diversified by both tenant and geography.

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 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 per cent cap and 0.0 per cent floor).

Ben Green, director of Atrato Capital Limited, the investment advisor to Supermarket Income REIT plc, said: “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.“