REG - Supermarket Inc REIT - ACQUISITION OF TWO SUPERMARKETS FOR £73M

Supermarket Income REITAnnouncement

16/11/2021 07:05

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RNS Number : 4575S  Supermarket Income REIT PLC  16 November 2021

SUPERMARKET INCOME REIT PLC

(the "Company")

LEI: 2138007FOINJKAM7L537

 

Acquisition of sainsbury's and tesco SupermarketS FOR £73M

 

Supermarket Income REIT plc (LSE: SUPR), the real estate investment trust
providing secure, inflation-protected, long income from grocery property in
the UK, announces the acquisition of a Sainsbury's supermarket in Swansea,
South Wales, and a Tesco supermarket in Maidstone, Kent, from Argo Real Estate
Limited for a total purchase price of £73.0 million (excluding acquisition
costs), reflecting a combined net initial yield of 4.6%.

 

The Sainsbury's store opened in 1989 and was refurbished in 2016. The 7.0 acre
city centre site comprises a 65,000 sq ft net sales area supermarket, an
18-pump petrol filling station and over 500 car parking spaces. The store has
a purpose-built online fulfilment centre which operates 16 vans, supporting
Sainsbury's online grocery network across the region. It is being acquired
with an unexpired lease term of 27 years, with five-yearly, upwards only, open
market rent reviews.

The Tesco site in Maidstone, Kent, was purpose built for Tesco in 1990 and
extensively refurbished in 2007. This 7.0 acre site comprises a 39,000 sq ft
net sales area supermarket, a 12-pump petrol filling station, 369 car parking
spaces and a small parade of adjoining units. It is being acquired with an
unexpired lease term of 13 years, with five-yearly, upwards only, open market
rent reviews.

 

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

"These two stores are excellent additions to our growing portfolio of grocery
real estate and were funded using the proceeds of our recently oversubscribed
equity issue. Both assets have attractive underlying fundamentals and long
histories of strong trading performances, providing a combined accretive
weighted average unexpired lease term of 21 years."

 

 FOR FURTHER INFORMATION
 Atrato Capital                                                                                       +44 (0)20 3790 8087
 Limited
 Steve Noble / Rob Abraham / Carcie Rogers                                                            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 63 supermarkets((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 Main Market of
the London Stock Exchange, Specialist Fund Segment, 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)

(1)   37 directly owned supermarkets, plus 26 via joint venture

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

 

 

 

 

 

 

 

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