Business
ACQUISITION OF SAINSBURY'S SUPERSTORE FOR £80 M
ACQUISITION OF SAINSBURY'S SUPERSTORE FOR £80 M.
About this update from Supermarket Income Reit Plc
[{"type":"text","content":"\n \nRNS Number : 5134P Supermarket Income REIT PLC 01 September 2017 \n\n1 September 2017\n \nACQUISITION OF SAINSBURY'S SUPERSTORE, ASHFORD, FOR £80 MILLION\n(\"Supermarket Income REIT\" or the \"Company\")\n \nSupermarket Income REIT (LSE: SUPR), the UK supermarket real estate investor, announces that it has acquired the freehold of the Sainsbury's Bybrook Superstore in Ashford, Kent, from National Farmers Union Mutual Insurance Society for £80 million (net of acquisition costs), reflecting a net initial yield of 4.5% after the next agreed RPI-linked rent review in September 2017.\nThe store comprises 125,000 sq ft on a 17-acre site with more than 700 parking spaces. It is being acquired with an unexpired lease term of approximately 21 years, which is subject to annual, upward-only, RPI-linked rent reviews (subject to cap and collar) on full repairing and insuring terms. Sainsbury's first developed this site in the early 1990s and have since undertaken a significant capital investment in the store through an extension and refurbishment in 2011.\nThe purchase has been funded out of the equity proceeds of the IPO in July 2017 and from the Company's Revolving Credit Facility.\nBen Green, Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said: \"This is our third acquisition since our IPO. The asset is important to Sainsbury's, which has committed significant capital into its extension and redevelopment in recent years. The sizable 17-acre site is ideally located to serve the ever-growing Ashford population, situated in close proximity to the town centre and directly adjacent to the M20 and the Eureka leisure park. \n\"This 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. It also diversifies and strengthens our tenant and geographic mix\".\n \nFor further information, please contact:\n \nAtrato Capital Limited +44 (0)20 3790 8087\nBen Green\nSteve Windsor\nSteve Noble\n \n St...