Supermarket Income REIT has bought a Sainsbury’s supermarket in Melksham, Wiltshire, and a Waitrose supermarket in Winchester, Hampshire, from LaSalle Investment Management for £64.8m – reflecting combined net initial yield of 4.4%.
The Sainsbury’s store was developed in the 1990s and subsequently extended and refurbished in 2011. The nine-acre site comprises a 47,000 sq ft net sales area supermarket, an eight-pump petrol filling station, 290 parking spaces and purpose-built online fulfilment distribution docks.
It is being acquired with an unexpired lease term of 17 years, with annual, upwards-only, RPI-linked rent reviews (subject to a 4% cap and a 1% floor).
The Waitrose site was developed in 2009 and comprises a 25,500 sq ft net sales area omnichannel supermarket with 180 parking spaces. Four flats, a GP medical centre and four ancillary units are also included with the purchase.
The Waitrose store has been acquired with an unexpired lease term of 24 years, with five-yearly, upward-only, RPI-linked rent reviews (subject to a 3.3% cap and a 1% floor).
Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: “These two supermarkets are excellent additions to our portfolio. The lease lengths at 17 years and 24 years respectively are accretive to our portfolio WAULT of 16 years, while adding another Waitrose store brings further tenant diversification to the portfolio.”
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