REG - Supermarket Inc REIT - Acquisition of a Tesco store and amendments to IAA

Supermarket Income REITAnnouncement

22/03/2024 07:00

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RNS Number : 8608H  Supermarket Income REIT PLC  22 March 2024

22 March 2024

SUPERMARKET INCOME REIT PLC

(the "Company")

 

Acquisition OF A TESCO SUPERMARKET AND AMENDMENTS TO Investment Advisory
AGREEMENT

  

Supermarket Income REIT plc (LSE: SUPR), the real estate investment trust
providing secure, inflation-linked, long income from grocery property in the
UK, announces the acquisition of a Tesco omnichannel supermarket in
Stoke-on-Trent, Staffordshire, for a total purchase price of £34.7 million
(excluding acquisition costs), reflecting a net initial yield of 7.5%.

 

The acquisition comprises a 54,451 sq ft net sales area omnichannel
supermarket and petrol filling station which sits on an 8.7 acre site. The
store was built in 1994 and supports Tesco's online fulfilment operation via
both home delivery vans and customer Click & Collect. The store is being
acquired with an unexpired lease term of 11 years and is subject to annual
RPI-linked rent reviews (subject to a 4% cap and a 0% floor).

 

The acquisition has been funded through the drawdown of the Company's existing
revolving credit facility.

 

Investment Advisory Agreement (the "IAA")

 

The Company also announces that it has entered into an amended and restated
investment advisory agreement (the "Revised IAA") with its investment adviser,
Atrato Capital Limited (the "Investment Adviser"), and its alternative
investment fund manager, JTC Global AIFM Solutions Limited.

 

The principal amendments to the existing IAA relate to the termination
provisions of the agreement and seek to reflect the original commercial
intentions of the Board and Investment Adviser. The Board has agreed to make
these amendments to provide clarification for all parties in the event of a
takeover, delisting or liquidation (a "Relevant Event"). As described below,
the Revised IAA allows for a payment in lieu of written notice to the
Investment Adviser following a Relevant Event, limited to the equivalent of
the fees that would have been due over the existing rolling two-year written
notice period. The two-year written notice period was agreed in July 2021 (RNS
Number: 2849F), in conjunction with a reduction in the investment advisory
fees.

 

In particular, the Revised IAA:

·    clarifies that fees relating to the period following a Relevant Event
are calculated on the basis of the last available net asset value prior to the
Relevant Event;

 

·    gives the Company the right, in addition to its existing right to
terminate on two years' written notice (where notice would be required to be
worked), to terminate the agreement following the announcement of a takeover,
a possible takeover or a delisting. Such termination would take effect upon
the Relevant Event becoming effective and the Investment Adviser would, on
that date, receive a payment in lieu of written notice (such that notice would
not be required to be worked) equal to fees for a period of two years less the
time since the notice was given or (if earlier) since the date on which any
earlier termination notice was given; and

 

·    clarifies that if there is a liquidation or similar event in relation
to the Company, and the Investment Adviser terminates the agreement with
immediate effect (as it has always been entitled to do), the Investment
Adviser would immediately receive a payment in lieu of written notice (such
that notice would not be required to be worked) equal to fees for a period of
two years less (if applicable) the time since any earlier termination notice
was given.

 

For the purposes of Chapter 11 of the FCA's Listing Rules, the Investment
Adviser is a related party of the Company.  Pursuant to Listing Rule
11.1.10R, the entry into the amended and restated investment advisory
agreement constitutes a smaller related party transaction and this
announcement is made in accordance with Listing Rule 11.1.10R(2)(c).

 

 

 FOR FURTHER INFORMATION                                                                           
 Atrato Capital Limited                                                                           +44 (0)20 3790 8087 
                                  
 Steven Noble / Rob Abraham / Chris McMahon                                                       ir@atratocapital.com (mailto:ir@atratocapital.com)   

 Stifel Nicolaus Europe Limited                                                                   +44 (0)20 7710 7600 
 Mark Young / Matt Blawat / Rajpal Padam                                                           

 Goldman Sachs International                                                                      +44 (0)20 7774 1000

 Jimmy Bastock / Tom Hartley
                                                                                                   
 FTI Consulting                                                                                   +44 (0)20 3727 1000 

  
 Dido Laurimore / Eve Kirmatzis / Andrew Davis                                                    SupermarketIncomeREIT@fticonsulting.com
                                                                                                  (mailto:SupermarketIncomeREIT@fticonsulting.com)   

NOTES TO EDITORS: 

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

 

The Company provides investors with attractive, long-dated, secure,
inflation-linked, growing income with the potential for capital appreciation
over the longer term.

 

The Company is listed on the premium segment of the Official List of the UK
Financial Conduct Authority and its Ordinary Shares are traded on the Main
Market of the London Stock Exchange, having listed initially on the Specialist
Fund Segment of the Main Market on 21 July 2017.

 

Atrato Capital Limited is the Company's Investment Adviser. 

 

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.

 

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