Supermarket Income REIT has acquired the freehold of Sainsbury’s Bybrook superstore in Ashford, Kent for £80m – a net initial yield of 4.5%.
The 125,000 sq ft shop, purchased from National Farmers Union Mutual Insurance Society, has an unexpired lease term of 21 years, subject to upward-only RPI-linked rent reviews.
It was funded by proceeds from its IPO in July, which raised £100m, along with the company’s revolving credit facility.
The acquisition is the REIT’s third after buying the freehold of a Tesco superstore on Lime Trees Road in Bristol in August.
Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: “The investment by Supermarket Income REIT is a strong addition to our portfolio and provides attractive and growing income, while its size, site cover and location means that there is excellent upside potential over the longer term.”
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