REG - Supermarket Inc REIT - Acquisition of a Tesco supermarket and updated KID

Supermarket Income REITAnnouncement

14/09/2020 07:00

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RNS Number : 8182Y  Supermarket Income REIT PLC  14 September 2020

SUPERMARKET INCOME REIT

(the "Company")

LEI: 2138007FOINJKAM7L537

acquisition of a tesco supermarket and Updated Key Information Document
("KID")

Supermarket Income REIT (LSE: SUPR), the real estate investment trust
providing secure, inflation-protected, long income from grocery property in
the UK, announces the acquisition of a Tesco supermarket in Bracknell from a
client of CBRE Global Investors for £39.5 million (excluding acquisition
costs), reflecting a net initial yield of 5.7%.

Developed in the early 1990's, Tesco has a long history of trading from this
prominent 7.3-acre site which comprises a purpose-built food store and a
400-space surface car park. The store has several purpose-built online
distribution docks, supporting Tesco's online grocery business across the
region. The asset is being acquired with an unexpired lease term of 10 years
with annual, upward only, RPI-linked rent reviews (subject to a 4% cap and 0%
floor). The acquisition will be financed via a £40 million increase of the
£100 million RCF facility provided by HSBC. The increase will be priced at a
1.75% margin over 3-month Libor.

The Company has also published an updated Key Information Document ("KID") in
accordance with the requirements of the Packaged Retail and Insurance-based
Investment Products ("PRIIPs") Regulation.

The KID provides key information about the Company as an investment product.
It is not marketing material. The KID contains information about the Company
in a prescribed format and should be considered alongside the Company's
statutory filings, such as the Annual Report, which can also be found on the
website.

The full KID is available to view and download on the Company's website at:
https://www.supermarketincomereit.com/investor-centre

Ben Green Director of Atrato Capital, the Investment Adviser to Supermarket
Income REIT, said:

"This omnichannel Tesco supermarket is an excellent addition to our portfolio.
The store is situated in a prime location and is an important online grocery
fulfilment hub, supporting both home delivery and click and collect."

 

 FOR FURTHER INFORMATION:

 Atrato Capital                                                                                       +44 (0)20 3790 8087
 Limited
 Ben Green / Steve Windsor / Steve Noble                                                              ir@atratocapital.com (mailto:ir@atratocapital.com)

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

 FTI Consulting                                                                                       +44 (0)20 3727 1000

 Dido Laurimore / Eve Kirmatzis / Andrew                                                              SupermarketIncomeREIT@fticonsulting.com
 Davis

 

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 of the
Company's 45 properties((1)) 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 and targets a 7% to 10% p.a. total shareholder return
over the medium term((2)). The Company has increased its dividend target in
line with UK RPI inflation each year.

The Company's ordinary shares were admitted to trading on the Specialist Fund
Segment of the London Stock Exchange's Main Market for listed securities on 21
July 2017.

Atrato Capital is the Company's Investment Adviser.

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

(1)   19 direct properties, plus 26 via joint venture

(2)   There is no certainty that these illustrative projections will be
achieved

 

 

 

 

 

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