Six UK supermarkets snapped up for £113.1m
By Rob Griffin
11:51, 20 September 2021
Supermarket Income REIT (SUPR), the real estate investment trust, has announced it has acquired six sites across the UK for a total of £113.1m.
In a statement to the London Stock Exchange, it said the move was part of a strategic plan to deliver attractive long-term income to investors.
The purchases are a Tesco outlet in Prescot, two Morrisons stores in Durham and Cumbria, an Aldi in Oldham, and an Aldi and M&S Foodhall site in Liverpool.
Geographical diversification
According to the Trust, which focuses on investing in grocery properties, the acquisitions reflect a combined net initial yield of 4.6%.
Ben Green, director of Atrato Capital Limited, the investment adviser to Supermarket Income REIT, said the stores “provide geographic and tenant diversification”.
The deals also represent the purchase of SUPR’s first M&S Foodhall, along with exposure to a number of high-quality, omnichannel supermarket assets.
“With an aggregate WAULT [weighted average unexpired lease term] of 15 years, they support our strategy to deliver attractive long-term income,” he added.
The Tesco store
The Tesco site in Prescot, Merseyside is being purchased from an undisclosed vendor for £50m, excluding acquisition costs. The supermarket has operated from the store since 1993.
The 7.5-acre site comprises an 89,000 sq ft net sales area supermarket, a 12-pump petrol filling station and 496 car parking spaces.
It also has a purpose-built online fulfilment centre which operates 12 vans, supporting Tesco’s online grocery network across the region.
Morrisons outlets
The Morrisons in Murton, Durham was bought from Janus Henderson UK Property PAIF for £18.4m, excluding acquisition costs.
Developed in 2016, the 7.5-acre site also features a 16-pump petrol filling station and 475 car parking spaces.
The Morrisons in Workington, Cumbria was acquired from Land Securities Group plc for £28.9m, excluding acquisition costs, and has been home to the supermarket since 2004.
Aldi and M&S
The Aldi store in Oldham, Greater Manchester, was secured from OPP Investments Ltd for £5.6m, excluding acquisition costs, which was developed in 2011.
Meanwhile, the Aldi and M&S Foodhall in West Derby, Liverpool was purchased from London Metric Property plc for £10.2m, excluding acquisition costs.
The Aldi supermarket has an unexpired lease term of 15 years, with five-yearly, 2.5% fixed, annually compounded uplifts.
The M&S Foodhall, meanwhile, has an unexpired lease term of 10 years, with five-yearly, open market rent reviews.