REG - Supermarket Inc REIT - Acquisition of a Tesco in Ashford

Supermarket Income REITAnnouncement

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RNS Number : 8131Q  Supermarket Income REIT PLC  14 July 2025

14 July 2025

SUPERMARKET INCOME REIT PLC

(the "Company")

 

ACQUISITION OF A Tesco IN ASHFORD at 7.0% NIY

 

Supermarket Income REIT plc (LSE: SUPR), announces the acquisition of a Tesco
omnichannel supermarket in Ashford, Kent, for a total purchase price of £54.1
million (excluding acquisition costs), reflecting an attractive net initial
yield of 7.0% 1  (the "Acquisition").

 

Tesco, Ashford acquisition

 

The Acquisition of this top performing food store comprises a 93,000 sq ft
gross internal area omnichannel supermarket and a petrol filling station,
situated on an 8.2 acre site. Tesco has traded from the site for over 30 years
and uses the store as an online fulfilment hub with 14 home delivery vans, as
well as offering Click & Collect services. The store is being acquired
with an unexpired lease term of nine years with annual RPI-linked rent reviews
(subject to a 5% cap and a 0% floor).

 

The Company believes that current market conditions provide an attractive
buying opportunity, at an inflection point in the real estate cycle where
supermarket property valuations are at multi-year lows and long lease
inflation linked assets can be acquired at accretive yields.

 

This Acquisition represents the first transaction for the Company as it
redeploys the proceeds arising from the formation of its recently announced
strategic joint venture with funds managed by Blue Owl Capital into a pipeline
of attractive investment opportunities. The Company sees a number of
complementary routes to help drive growth, scale and liquidity whilst
maintaining sector focus. This may include increasing the tenant weighting to
operators for which the Company currently has limited or no exposure to, and
across a broader range of store formats, whilst maintaining the quality of the
Company's income profile. The Company is pursuing earnings enhancing
acquisitions with the strategic objective of delivering a growing and fully
covered dividend over the long term.

 

 

Rob Abraham, CEO of Supermarket Income REIT, commented:  

 

"I'm very pleased that we have begun redeploying the proceeds arising from our
recent joint venture, acquiring this top trading Tesco supermarket at an
attractive price, which will make a material contribution to our earnings from
day one. The team continues to work hard to execute on a number of further
pipeline opportunities as it focusses on scaling the business whilst
delivering sustainable earnings growth for our shareholders."

 

 

 FOR FURTHER INFORMATION                                                                                                  
 Supermarket Income REIT plc                                                                                             ir@suprplc.com  
 Rob Abraham / Mike Perkins / Chris McMahon

 Stifel Nicolaus Europe Limited                                                                                          +44 (0)20 7710 7600 
 Mark Young / Rajpal Padam / Catriona Neville                                                                             
                                                                                                                          
 Goldman Sachs International                                                                                             +44 (0)20 7774 1000

 Tom Hartley / Luca Vincenzini

 FTI                                                                                                                     +44 (0)20 3727 1000 
 Consulting                                                    
 Dido Laurimore / Eve Kirmatzis / Andrew Davis                                                                           SupermarketIncomeREIT@fticonsulting.com  

 

NOTES TO EDITORS: 

 

Supermarket Income REIT plc (LSE: SUPR, JSE: SRI) is a real estate
investment trust dedicated to investing in grocery properties which are an
essential part of the feed the nation infrastructure. The Company focuses on
grocery stores which are omnichannel, fulfilling online and in-person sales.
The Company's supermarkets are let to leading supermarket operators in the UK
and Europe, diversified by both tenant and geography. 

 

The Company's assets earn long-dated, secure, inflation-linked, growing
income. The Company targets a progressive dividend and the potential for
capital appreciation over the longer term.

 

The Company is listed on the closed-ended investment funds category of the
FCA's Official List and its Ordinary Shares are traded on the LSE's Main
Market. The Company's listing category is due to transfer from the
closed-ended investment funds category to the equity shares (commercial
companies) category of the FCA's Official List. This transfer was approved by
shareholders at the General Meeting held on 17 June 2025 and is anticipated to
become effective on 16 July 2025. The Company also has a secondary listing on
the Main Board of the JSE Limited in South Africa.

 

Further information is available on the Company's
website www.supermarketincomereit.com (http://www.supermarketincomereit.com/)
 

 

LEI: 2138007FOINJKAM7L537 

 

 

Stifel Nicolaus Europe Limited, which is authorised and regulated in the
United Kingdom by the Financial Conduct Authority, is acting exclusively for
Supermarket Income REIT plc and no one else in connection with this
announcement and will not be responsible to anyone other than the Company for
providing the protections afforded to clients of Stifel Nicolaus Europe
Limited nor for providing advice in connection with the matters referred to in
this announcement.

 

Goldman Sachs International, which is authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential
Regulation Authority in the United Kingdom, is acting exclusively for
Supermarket Income REIT plc and no one else in connection with this
announcement and will not be responsible to anyone other than the Company for
providing the protections afforded to clients of Goldman Sachs International
nor for providing advice in connection with the matters referred to in this
announcement.

.

 

 1 NIY achieved on transaction costs of 2.7% due to acquisition of a corporate
entity

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