REG - Supermarket Inc REIT - TWO ACQUISITIONS & DEBT FINANCING UPDATE

Supermarket Income REITAnnouncement

05/01/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220105:nRSE4319Xa&default-theme=true

RNS Number : 4319X  Supermarket Income REIT PLC  05 January 2022

SUPERMARKET INCOME REIT PLC

(the "Company")

LEI: 2138007FOINJKAM7L537

 

ACQUISITION OF two SUPERMARKETS AND DEBT FINANCING UPDATE

 

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 two supermarkets, a Sainsbury's in
Washington, Tyne and Wear, and an Asda in Cwmbran, South Wales, for a total
purchase price of £55.1 million (excluding acquisition costs), reflecting a
combined net initial yield of 5.3%. The company also announces an  increase
to its debt facility with Barclays and Royal Bank of Canada.

 

The Washington supermarket, which was originally developed in 1977 and
extensively refurbished by Sainsbury's in 2011, comprises a 83,800 sq ft net
sales area omnichannel supermarket, a 24-pump petrol filling station, and
purpose-built online fulfilment docks. The store forms a key part of
Sainsbury's online fulfilment operations across the region. The 11.7 acre site
has provision for 800 car parking spaces and is prominently located in the
town centre directly adjacent to the Galleries Shopping Centre. The
Sainsbury's store is being acquired with an unexpired lease term of 34 years,
with 7-yearly, upwards only, RPI-linked rent reviews (subject to 4.0% cap and
a 1.0% floor). The acquisition also includes two standalone quick service
restaurant units operated by KFC and Tim Hortons co-located on the same site.

 

The Asda store in Cwmbran, which represents SUPR's first Asda acquisition,
comprises a 81,600 sq ft net sales area omnichannel supermarket located on a
prominent 4.4 acre site adjacent to Cwmbran Shopping Centre with access to
over 740 car parking spaces. Asda has been trading on the site since the
1970s, with the current store developed in 2015 to form a modern supermarket
which is currently undergoing further expansion to incorporate new
purpose-built online fulfilment docks. The store will form a key part of
Asda's online fulfilment operations across the region. It is being acquired
with an unexpired lease term of 10 years, with 5-yearly, upwards only, open
market rent reviews.

 

Debt financing update

 

The company has arranged a £136.5 million increase to its Revolving Credit
Facility ("RCF") with Barclays and Royal Bank of Canada. Following this
increase, the total size of the facility is £250.2 million with a further
£49.8 million uncommitted accordion option, which is exercisable at any time
over the term of the facility. This secured, interest-only, RCF has a
remaining term of two years and two further one-year extension options, with a
margin of 1.5% above SONIA.

 

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

 

"These acquisitions are strong additions to Supermarket Income REIT's growing
portfolio of omnichannel stores and in combination are accretive to both the
weighted average unexpired lease term and net initial yield of the Company's
portfolio. In addition, the Asda acquisition provides further tenant
diversification for the portfolio.

 

We are also pleased to further strengthen our relationships with Barclays and
Royal Bank of Canada, who continue to be key funding partners for Supermarket
Income REIT. The increased facility provides us with additional capacity as we
deploy the proceeds of our recent equity raise."

 

 

 FOR FURTHER INFORMATION
 Atrato Capital Limited                                                                           +44 (0)20 3790 8087
 Steve Noble / Rob Abraham /  Kate Heseltine                                                      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 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 of the
Company's 67 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 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.             41 directly owned supermarkets, plus 26 via joint
venture

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

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQBIMLTMTIMBFT