Supermarket Income REIT has bought a Tesco supermarket in Colchester, Essex, from Standard Life Investments Long Lease Fund for £63m.
The pricing for the 10-acre site, located in Hythe, represented a net initial yield of 4.5%.
The store comprises a 54,300 sq ft net sales area supermarket, a 16-pump petrol filling station and 570 parking spaces. It also has several online fulfilment distribution docks supporting Tesco’s online grocery business in the region.
Supermarket Income has acquired the store with an unexpired lease term of 19 years, with annual, upwards only, RPI-linked rent reviews (subject to a 4% cap and a 0% floor).
Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: “This Tesco store is a great addition to our growing portfolio of omnichannel stores with an attractive, long, index-linked lease in excess of 19 years.
“The property has strong underlying fundamentals and forms a key part of the Tesco online fulfilment network.”
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