Business
Acquisition of a Tesco store and new loan facility
Acquisition of a Tesco store and new loan facility.
About this update from Supermarket Income Reit Plc
[{"type":"text","content":"\n \n \n RNS Number : 0915U\n Supermarket Income REIT PLC\n 27 July 2020\n \n \n \n \n SUPERMARKET INCOME REIT\n \n \n (the \"Company\")\n \n LEI: 2138007FOINJKAM7L537\n \n \n acquisition of a tesco supermarket and new loan facility\n \n \n \n \n \n Supermarket Income REIT (LSE: SUPR), the UK supermarket real estate investment trust providing secure, inflation-protected, long income from grocery property in the UK, announces the acquisition of the Tesco Extra in Newmarket, Suffolk, from Standard Life Pooled Pension Property Fund for £61.0 million (excluding acquisition costs), reflecting a net initial yield of 4.6%.\n Tesco has a long history of trading from this prominent 9-acre site which was originally developed in the 1980s and completely rebuilt in 2016.\n \n The site comprises a 68,000 sq ft net sales area Tesco Extra with a 12-pump petrol filling station, 654 parking spaces and purpose-built online fulfilment distribution docks, supporting Tesco's online grocery business across the region. It is being acquired with an unexpired lease term of 16 years with annual, upward-only, RPI-linked rent reviews (subject to a 5% cap and 0% floor). \n \n The Company has also arranged a new revolving credit facility (\"RCF\") of £60.0 million with Wells Fargo. This secured, interest-only, RCF has an initial five-year term and two further one-year extension options. Once drawn, the RCF has a margin of 2.0% above 3-month Libor which is currently equivalent to a total cost of c.2.1%. The RCF also includes a £100 million uncommitted accordion option, exercisable at any time over the term of the facility.\n \n \n Ben Green Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said:\n \n \"This modern Tesco Extra is a great addition to our growing portfolio of omnichannel stores. The property has attractive lease terms, strong fundamentals and is a key online grocery fulfilment hub for Tesco supporting both home delivery and click and collect.\n \"We are also delighted to have secured Wells Fargo as a new lender to Supermarket Income REIT. Our new facility provides us with very competitively priced, seven-year funding with room to grow to support the Company's future investment requirements\".\n \n \n \n \n FOR FURTHER INFORMATION\n \n \n Atrato Capital Limited +44 (0)20 3790 8087\n \n \n Ben Green\n...