Supermarket Income REIT has bought a 37,000 sq ft Morrisons store in Wisbech, Cambridgeshire from Aberdeen Standard Investments.
The nine-acre site, which was acquired for £30m, includes 36,000 sq ft across two adjoining stores let to B&Q and B&M. These have a weighted unexpired lease term of eight years and are subject to open-market rent reviews.
The price reflects a 5% net initial yield. The supermarket was sold with a new 26-year lease, with a tenant-only break option in year 20. It is subject to five-yearly, upwards-only, RPI-linked rent reviews (subject to a 3% cap and a 1.5% floor).
The supermarket was developed in the 1980s and was extended and refurbished by Morrisons in 2011.
Ben Green, director of investment adviser Atrato Capital, said: “This modern store is a great addition to our growing portfolio of omnichannel stores. The property has strong underlying fundamentals with an attractive lease term providing inflation-linked income in excess of 20 years.”
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